"The 1st quarter financial results reflect ordinary seasonal factors. The fixed expenses such as personnel-related expense tend to increase as a new fiscal year begins. On the other hand, we're usually pressured to reduce monthly recurring revenues by our certain clients whose budgets renew at the beginning of fiscal year. Also, 1st quarter systems construction revenue tends to be the smallest every year. As a result, 1Q13 operating income decreased a little compared with 1Q12. Despite all these, we stay pretty optimistic as the impact was within our expectations."
"To accelerate our business development and expand further in this highly competitive market, we secured money for growth by issuing new shares, which amounted to approx. JPY17.3 billion. With this fund, we'll be able to aggressively advance our business development including M&A opportunities. The addition of Mr. Katsu as new President and COO strengthens our management abilities and thus expands our business scale. The stable business growth we've made every year has led us to where we're now and we recognized that it is the appropriate timing to increase our business investments. Through the enhancement of management structure and the equity finance, we aim to take IIJ to the next level of growth and scale," concluded Suzuki.
1 Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with U.S. GAAP. All financial figures are unaudited and consolidated. The translation of Japanese yen into U.S. dollars is solely for the convenience of readers outside of Japan. The rate used for the translation was JPY99.21 per US$1.00, which was the noon buying rate on June 28, 2013.
|1 st Quarter FY2013 Financial Results Summary|
|Operating Results Summary|
|1Q12||1Q13||YoY % Change|
|JPY millions||JPY millions|
|Systems Integration (SI)||7,952||8,692||9.3|
|ATM Operation Business||468||645||37.9|
|Systems Integration (SI)||6,564||7,350||12.0|
|ATM Operation Business||421||535||27.1|
|SG&A Expenses and R&D||3,445||3,725||8.1|
|Income before Income Tax Expense||1,373||1,431||4.2|
|Net Income attributable to IIJ||897||954||6.4|
|Segment Results Summary|
|JPY millions||JPY millions|
|Network Services and SI Business||24,510||25,939|
|ATM Operation Business||468||645|
|Network Service and SI Business||1,393||1,255|
|ATM Operation Business||16||81|
We have omitted segment analysis because most of our revenues are dominated by Network services and Systems Integration (SI) business.
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