Internet Initiative Japan Inc. (IIJI) reported that its net income attributable to the company for fiscal year year 2016 was 3.167 billion yen, down 21.6% from last year's 4.038 billion yen last year.
Operating income was 5.134 billion yen, down 16.4% from the prior year due to the overall cost increase along with the continuous business investments and a deterioration of SI gross margin. However in the latter half, the revenue and income accumulated accordingly with revised plan announced in November 2016 and SI profitability recovered in the fourth-quarter of 2016 by mainly improving the productivity of outsourcing personnel and with the absence of large-scale unprofitable projects.
Total revenues for the year rose to 157.80 billion yen from 140.65 billion yen last year.
For fiscal year 2017, the company targets the total revenue of 176.0 billion yen, 11.5% annual increase, with continuous expansion of monthly recurring revenue services including mobile, many flagship GIO P2 projects, security and more. With the accumulation of recurring network services revenues and improvement of SI profitability should absorb increasing costs; thus FY2017 operating income should turn to increase to 6.5 billion yen, up by 26.6% year over year.
For 2017, the company anticipates net income attributable to the company to be 4.0 billion yen.
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