(RTTNews) - Thursday, network solutions provider Internet Initiative Japan Inc. (IIJI: News ) announced earnings for the first six months of Fiscal Year 2010 that surged by about 95% year-over-year despite a 2.9% decline in revenues. The company also reaffirmed its outlook for fiscal 2010.

Net income attributable to IIJ surged 94.6% to JPY715 million from JPY368 million in the corresponding period last year. Net income attributable to IIJ in U.S. dollars amounted to $8 million.

Net losses attributable to non controlling interests was JPY175 million compared to JPY140 million in the first half of 2008, both related to GDX Japan Inc. and Trust Networks Inc.

Net income was $6.03 million or JPY540 million compared to JPY228 million in the first half of 2008.

Revenues were $360.7 million or JPY32,275 million, down 2.9% from JPY33,254 million in the same period last year.

Connectivity and Outsourcing Services revenue were JPY18,304 million, an increase of 7.7% from the year-ago period. Connectivity service increased by 7.9% from the same period last year to JPY10,297 million and outsourcing services increased by 7.3% year-over-year to JPY8,006 million. SI revenues declined 13.3% and were JPY13,624 million in the first half of 2009.

Equipment sales revenues were JPY309 million, down 40.9% from the year-ago period. ATM Operation Business revenues were JPY38 million, an increase of 248.0% compared with the same period last year.
Operating income was $13.03 million or JPY1,166 million, an increase of 16.0% from JPY1,005 million in the year ago perioid due to continuous cost control. Operating loss related to the company's new ATM operation business was JPY467 million compared with JPY227 million in fist half of 2008.

Cash dividend for FY2009 interim period of IIJ's common stock amounted to JPY1,000 per share.

Looking ahead, for the fiscal year ending March 31, 2010 the company reaffirmed its estimate of net income attributable to IIJ of JPY1,700 million on revenues of JPY73,000 million.

The company said "For the latter half of FY2009, while revenue growth is expected to be weak and a drastic economic recovery is unlikely to occur, we will continue to focus on tight cost control toward FY2010. For mid-term growth, we will continue to introduce new service which we believe will result in strengthening the basis of our business."

IIJI declined $0.30 or 5.14% and closed Thursday's regular trading at $5.54.

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by RTT Staff Writer

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