Japanese internet access and network solutions provider Internet Initiative Japan (IIJ) has reported its full-year results for the fiscal year ending 31 March 2008. IIJ posted revenues of JPY66.8 billion (USD669.4 million), up 17.1% on FY2006/07, driven by strong demand for connectivity services, VAS and systems operation, it said. Connectivity services climbed 33.1% year-on-year, and a good performance was witnessed at VAS (up 28.7% y-o-y) and systems (+15.3%). The service provider returned operating income of JPY4.8 billion, an increase of 36.0% on the previous full-year, which was led by an increased gross margin of all three operating segments. Net income for the year was JPY5.2 billion, a decrease of 4.3% from FY2006/07, mainly due to the absence of large capital gains from the sale of equity securities which were recorded last year.