Sales and marketing expenses were JPY2,115 million, up 9.6% YoY. The increase was mainly due to the increase in personnel-related expenses, rent expenses related to expanded office spaces, sales commission expenses related to Internet connectivity services for home use and advertising expenses.

General and administrative expenses were JPY1,501 million, up 6.3% YoY. The increase was mainly due to the increase in personnel-related expenses and staff-training expenses related to the increase in employees as well as the increase in rent expenses related to the expanded office spaces.

Research and development expenses were JPY109 million, up 5.0% YoY.

Operating income

Operating income was JPY1,305 million, down 5.0% YoY. While gross margin of network services and systems integration revenues for 1st quarter were small due to seasonal factors, fixed expenses such as personnel-related expense increased at the beginning of this fiscal year.

Other income (expenses)

Other income (expenses) was an income of JPY126 million (an expense of JPY1 million for 1Q12), mainly due to foreign currency gains of JPY93 million, compared to foreign currency losses of JPY20 million in 1Q12.

Income before income tax expense

Income before income tax expense was JPY1,431 million, up 4.2% YoY (JPY1,373 million for 1Q12) as a result that the increase in nonoperating income exceeded the decrease in operating income.

Net income

Income tax expense was JPY537 million (JPY515 million for 1Q12).

Equity in net income of equity method investees was JPY65 million (JPY33 million for 1Q12) mainly due to net income of Internet Revolution, Inc. and Internet Multifeed Co.

As a result of the above, net income was JPY959 million, up 7.6% YoY (JPY891 million for 1Q12).

Net income attributable to IIJ

Net income attributable to non-controlling interests was JPY5 million mainly related to net income of Trust Networks Inc (Net loss attributable to non-controlling interests of JPY6 million for 1Q12).

Net income attributable to IIJ was JPY954 million, up 6.4 % YoY (JPY897 million for 1Q12).

1 st Quarter FY2013 Financial Condition

Balance Sheets

As of June 30, 2013, the balance of total assets was JPY79,776 million, decreased by JPY2,335 million from the balance as of March 31, 2013 (JPY82,111 million as of March 31, 2013).

If you liked this article you might like

3 Stocks Pushing The Telecommunications Industry Lower

3 Stocks Driving The Internet Industry Higher

3 Stocks Pushing The Telecommunications Industry Lower

3 Stocks Pushing The Internet Industry Lower

3 Stocks Pushing The Telecommunications Industry Lower