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IIJ Announces Nine Months Financial Results For The Fiscal Year Ending March 31, 2011

"In addition, our outsourcing services such as Web-gateway service, SMX service, contents delivery network service and data center related services have also continued its steady growth. We believe it's our long experience in providing outsourcing service and our persistent effort to introduce new services which prevents any internet related security crisis that makes corporate customers choose our services. During the 3rd quarter of this fiscal year, we've launched several new services: IIJ Mobile Biz Plus that provides access restriction features, IIJ Smart Mobile Manager that enables remote management of iPad and other smart phone devices and add on firewall feature for SMF service. All these services give solutions to those critical problems which many corporate customers are facing."

"There's also been progress with IIJ-GS. IIJ and IIJ-GS has strengthened its sales force that cross-sells both IIJ's network outsourcing services and IIJ-GS's WAN services to both corporate customers," said Suzuki.

"For our mid-term business developments, we will introduce new services in addition to further expanding our service facilities for cloud computing such as Japan's first container-unit commercial data center. We will also promote the use of IPv6 address. As many of you may know, the Internet will run out of IPv4 addresses to allocate and internet users, both corporate and individual, eventually will have to start using IPv6 addresses. Our backbones, servers and services are already IPv6 ready and we have solutions, engineering skills and experience to support IPv6. As for IIJ-GS, it is currently preparing to take its business abroad, especially in Asia, by providing global-WAN services mainly to Japanese companies overseas."

FY2010 Nine Months Financial Results Summary
Operating Results Summary
  Nine months ended Dec 31, 2009 Nine months ended Dec 31, 2010 YoY % change
  JPY millions JPY millions  
Total Revenues 48,313 56,797 17.6
Network Services 3 27,601 36,110 30.8
SI 20,165 19,784 (1.9)
Equipment Sales 439 550 25.3
ATM Operation Business 108 353 226.1
Total Costs 38,693 45,257 17.0
Network Services 22,878 29,205 27.7
SI 14,751 14,876 0.8
Equipment Sales 380 473 24.6
ATM Operation Business 684 703 2.9
SG&A Expenses and R&D 7,613 9,110 19.7
Operating Income 2,007 2,430 21.1
Income before Income Tax Expense 1,783 2,175 22.0
Net income attributable to IIJ 1,133 1,997 76.2
3 From the second quarter of FY2010, "Connectivity and Outsourcing Services Revenues" has been renamed to "Network Services Revenues". 
       
 
Segment Summary
  Nine months ended Dec 31, 2009 Nine months ended Dec 31, 2010
  JPY millions JPY millions
Net Revenues 48,313 56,797
Network services and SI business 48,525 56,776
ATM operation business 108 353
Elimination 320 332
Operating Income (Loss) 2,007 2,430
Network service and SI business 2,754 2,922
ATM operation business (731) (465)
Elimination 16 27

We have omitted segment analysis because most of our revenues are dominated by Network services and systems integration business.

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