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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