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

FY2010 Nine Months Results of Operation

Revenues

Revenues were JPY56,797 million, up 17.6% YoY. Additional revenue of 4 months related to IIJ-GS was JPY8,652 million.

Network Services revenue were JPY36,110 million, up 30.8% YoY.

Revenues for Internet connectivity services for corporate use were JPY10,433 million, up 0.6% YoY as IIJ mobile service and broadband connectivity services increased. Contracts of over 1Gbps IP service as of end of December 2010 was 127 contracts, up 6 contracts YoY.

Revenues for Internet connectivity services for home use were JPY4,974 million, down 3.1% YoY.

WAN Services revenue were JPY9,702 million, up 408.8% YoY. There were additional revenues related to IIJ-GS of 4 months.

Outsourcing services revenue were JPY11,001 million, up 7.9% YoY. Services such as Web Security, anti-spam email related services, contents delivery services, data center related services and cloud computing related services increased, respectively. Our cloud computing service "IIJ GIO" is growing and its monthly revenue, including revenue which is recognized in systems operation and maintenance, as of end of December 2010 has reached over JPY90 million.
Number of Contracts for Connectivity Services
  as of  Dec 31, 2009 as of Dec 31, 2010 YoY Change
Internet Connectivity Services  (Corporate Use) 4 60,023 75,287 15,264
 IP Service (-99Mbps) 927 903 (24)
 IP Service (100Mbps-999Mbps) 244 281 37
 IP Service (1Gbps-) 121 127 6
 IIJ Data Center Connectivity Service 299 307 8
 IIJ FiberAccess/F and IIJ DSL/F 27,805 38,034 10,229
 IIJ Mobile Service 5 29,209 34,303 5,094
Others 1,418 1,332 (86)
Internet Connectivity Services  (Home Use) 404,700 378,985 (25,715)
 Under IIJ Brand 47,718 43,057 (4,661)
 hi-ho 171,511 159,725 (11,786)
 OEM 185,471 176,203 (9,268)
Total Contracted Bandwidth 647.2 Gbps 702.0 Gbps 54.8 Gbps

 
Network Services Revenues Breakdown
  Nine months ended Dec 31, 2009 Nine months ended Dec 31, 2010 YoY % Change
  JPY millions JPY millions  
Internet Connectivity Service  (Corporate Use) 10,368 10,433 0.6
 IP Service 6 6,957 6,705 (3.6)
 IIJ FiberAccess/F and IIJ DSL/F 2,196 2,265 3.2
 IIJ Mobile Service 7 994 1,268 27.5
Others 221 195 (11.7)
Internet Connectivity Service  (Home Use) 5,134 4,974 (3.1)
 Under IIJ Brand 775 753 (2.8)
 hi-ho 3,934 3,818 (3.0)
 OEM 425 403 (5.1)
WAN Services 8 1,907 9,702 408.8
Outsourcing Services 10,192 11,001 7.9
Total Network Services 27,601 36,110 30.8
 
4 From the second quarter of FY2010, "Connectivity Services" has been renamed to "Internet Connectivity Services ".
5 Contracts of IIJ Mobile Service are of mobile data communication service for corporate use.
6 IP Service revenues include revenues from the Data Center Connectivity Service.
7 Revenue from mobile data communication service for home use is included in Internet Connectivity service (home use).
8 From the second quarter of FY2010, to reflect the acquisition of IIJ Global on September 1, 2010, "WAN services", which were components of "Outsourcing services revenues" were separately disclosed to clarify the contents of WAN services revenues.

SI revenues were JPY19,784 million, down 1.9% YoY. Systems construction revenues, a one-time revenue, were JPY6,920 million, up 12.8% YoY as there were mid- to small sized network construction projects. Systems operation and maintenance revenues, a recurring revenue, was JPY12,864 million, down 8.3% YoY affected by the scale-down from a certain large client in 1Q10.

The order backlog for systems construction and equipment sales was JPY5,928 million, up 11.9% YoY. The order backlog for systems operation and maintenance was JPY10,883 million, up 12.3% YoY.

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