CrossWave Communications (fka CWCI)

[blueskywaves]

Extremely low PSR. High Sales Growth.

IIJI owns 38%. Sony owns 24%. Toyota owns 24%


Overview of 4Q02 and FY2002 results

"We attained satisfactory performance in FY2002. Profitability continued to improve throughout the year," said Akio Onishi, CEO of Crosswave. "Crosswave achieved sales figures in FY2002 that almost doubled those of FY2001. We believe that corporate demand for network reconstruction remains strong despite the fact that, due to the general economic conditions, decision making for investments tends to take longer than before and the timing of investment has been slightly delayed."

"In 4Q02, Crosswave, aimed to differentiate its services from its competitors by expanding its service line-up for the Wide-area IP Platform Service and access line availability," continued Mr. Onishi. "We expanded the reach of our service through the launch of our "Private IP Service" which targets mid-size companies through our partners' sales channels. In addition, we put two new large-scale data center facilities into operation, further positioning Crosswave as the premier total network provider for corporate customers."

Forecast - financial performance for FY2003

"We are targeting FY2003 revenue to grow more than 50% from FY2002 revenue," said Yasuharu Fushimi, CFO of Crosswave. "We intend to improve profitability to turn adjusted EBITDA positive in FY2003, and to reach the break even point for net profit in FY2004."

http://www.cwc.co.jp/en/index.html

JAPAN STATS

 
 Population                 126.8 million  
 Working                     67.7 million  
 Literacy Rate               99%  
 E-Commerce Volume          $18.7 million 
 Wireless Internet Users    50.34 million 
 Registered Internet Sites      7 million 
 

e-Japan

In an effort to help close the Internet-adoption gap between Japan and its economic peers, the Japanese government launched its e-Japan initiative last year. The program is designed to provide Japanese consumers with high-speed Internet access, encourage competition among telecommunications providers, and provide tax incentives for the private sector to build high-speed optical, cable, and mobile Internet networks.

The government has earmarked $16.7 billion annually to fund the e-Japan initiative, which also includes provisions to encourage 30,000 Internet experts from other countries to work in Japan, enable Japanese citizens to pay their national taxes online by 2003, train schoolteachers on desktop computers, and modify legislation to encourage expanded e-commerce.

Although e-Japan is a government program, the initiative’s goal is to encourage Japan’s private sector to help raise the country’s Internet capabilities.—Ewan Morrison


http://business.cisco.com/prod/tree.taf%3Fpublic_view=true&kbns=1&asset_id=87206.html

Developing Infrastructure

In the past, a heavily regulated telecommunications industry made the introduction of fixed-line telecommunications infrastructure systems slow and costly in many areas, limiting availability and hampering Japan’s Internet-business readiness. But recent regulatory reforms, direct foreign ownership of Japanese service providers, and increased competition are resulting in rapid, significant improvements.

For the past few years, the government has spent $35 billion annually to improve its telecommunications infrastructure. Through its recently launched Fiber to the Home and e-Japan initiatives, it intends to provide all Japanese businesses, government offices, schools, and homes with high-speed Internet access by 2010.

Through these initiatives, businesses and consumers alike are embracing the Internet, and they are experimenting with high-bandwidth multimedia applications. IDC Japan predicts that the number of Japanese broadband users will increase 81% each year until 2005, when the number will reach 12.42 million. eMarketer predicts that Japanese business-to-consumer e-commerce will grow to $24.6 billion in 2004 from $5.9 billion in 2001.