Japanese internet access and network provider Internet Initiative Japan (IIJ) has reported a 56.5% year-on-year drop in net income for its fiscal third-quarter ending 31 December, impacted by a decline in other income relating to the absence of capital gains from equity securities and the effect of income tax accounting. On a more positive note, the operator said its quarterly revenues were up 35.1% year-on-year and it reaffirmed its full-year outlook for 2007/08. Tokyo-based IIJ recorded third-quarter net income of JPY611 million (USD5.47 million), down from JPY1.4 billion a year earlier on revenues of JPY18.36 billion (USD164.35 million). The rise in sales was driven by steady increases from connectivity and value added services (up 31.9% to JPY8.05 billion), systems operation and maintenance (+39.7% at JPY9.91 billion), and the completion of a major infrastructure project. Equipment sales were also up 1.4% to JPY399 million from JPY393 million in the year-earlier quarter.