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IIJ Announces First Three Months Financial Results For The Fiscal Year Ending March 31, 2014

1 st Quarter FY2013 Results of Operation

Revenues

Total revenues were JPY26,441 million, up 6.4% YoY.

Network Services revenue was JPY16,785 million, up 4.3% YoY.

Revenues for Internet connectivity services for corporate use were JPY4,191 million, up 8.4% YoY. The increase was mainly due to the increasing demands for broader bandwidth.

Revenues for Internet connectivity services for home use were JPY1,397 million, down 2.2% YoY. While our LTE mobile data communication service, which was introduced in February 2012, has been accumulating orders continuously, the cancellations of old type connectivity services continued.

WAN services revenues were JPY6,310 million, stayed almost flat compared to 1Q12.

Outsourcing services revenues were JPY4,887 million, up 9.0% YoY. The revenue growth was mainly led by the continuous demands on "IIJ GIO Hosting Package Services" and datacenter-related services.

Network Services Revenues Breakdown      
  1Q12 1Q13 YoY % Change
  JPY millions JPY millions  
Internet Connectivity Service (Corporate Use) 3,865 4,191 8.4
 IP Service 2 2,439 2,681 9.9
 IIJ FiberAccess/F and IIJ DSL/F 802 783 (2.4)
 IIJ Mobile Service 3 564 670 18.8
 Others 60 57 (4.4)
Internet Connectivity Service (Home Use) 1,429 1,397 (2.2)
 Under IIJ Brand 318 455 43.1
 hi-ho 959 773 (19.4)
 OEM 152 169 11.2
WAN Services 6,312 6,310 (0.0)
Outsourcing Services 4,485 4,887 9.0
Total Network Services 16,091 16,785 4.3
Number of Contracts for Connectivity Services
  as of June 30, 2012 as of June 30, 2013 YoY Change
Internet Connectivity Services (Corporate Use) 95,342 117,000 21,658
 IP Service (-99Mbps) 930 879 (51)
 IP Service (100Mbps-999Mbps) 353 409 56
 IP Service (1Gbps--) 142 235 93
 IIJ Data Center Connectivity Service 318 299 (19)
 IIJ FiberAccess/F and IIJ DSL/F 44,847 50,099 5,252
 IIJ Mobile Service 4 47,442 63,779 16,337
 Others 1,310 1,300 (10)
Internet Connectivity Services (Home Use)   415,360 509,261 93,901
 Under IIJ Brand 55,424 101,896 46,472
 hi-ho 153,612 151,318 (2,294)
 OEM 206,324 256,047 49,723
Total Contracted Bandwidth 918.8Gbps 1,242.0Gbps 323.2Gbps

SI revenues were JPY8,692 million, up 9.3% YoY.

Systems construction revenue, a one-time revenue, was JPY2,964 million, up 7.4% YoY. The increase was led mainly by the increase in the number and the scale of systems construction projects. Systems operation and maintenance revenue, a recurring revenue, was JPY5,728 million, up 10.3% YoY. The increase was mainly due to the continuous demands on "IIJ GIO Component Services" and the operation and maintenance revenue for the large scale SI construction projects completed in the last fiscal year.

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