Striving for Perfection (Jinteki Q4 2013 Earnings Call Trans

*** Jinteki Q4 2013 Earnings Call & Netcast Transcript ***

OPERATOR: Good day, and welcome to Jinteki's fourth quarter 2013 Results Conference Call. At this time, I would like to turn the call over to Mr. Toshiyuki Sakia for introductory remarks.

-- Slide: Jinteki Q4 2013 Earnings Call --

SAKAI: We announced Jinteki's fourth quarter and full year 2013 results after the close of trading today. The shareholder letter and financial results are all available at our Investor Relations site, as will be the netcast for this call.

Our goal this last quarter at Jinteki was to overwhelm the market with assets and upgrades, requiring opposing runners to spend two clicks to access our remote servers during their turns. As previously forecasted, damage-dealing and expensive-to-break ICE have made it costly for runners to hit or bounce off our central servers, especially with the introduction of Encryption Protocols. While it's true that this partnership with our competitor Haas-Bioroid is a significant change in direction for the company, we've been eager to build on the encouraging results reported by db0's Untrashable trials and our own in-house experiments with variants.

-- Slide: Credits Rule Everything Around Me // Econ --

We are pleased to report a number of initiatives and fixed assets that have helped generate a healthy drip economy for Jinteki in the previous fiscal year, if not a flood. While this approach is vulnerable to attacks from outside forces -- unlike previous lucrative efforts made possible by tiny giraffes -- runners often ignore our consumer-targeted PAD Campaigns due to high trash costs.

And thanks to Sundews, Jinteki's revenues have increased dramatically year-over-year for the quarter. Runners tend to attack those more than our PAD Campaigns, but light ICE can ward them off until we can deluge the market with assets. And if we expect to lose an initial Sundew anyway -- and if we have a back-up prepared -- placing an ICE heavy with routines that can serve as the foundation for a super server has proven to be beneficial. Even when we've elected not to rez it, the threat tends to give runners pause. And we have recruited several talented students from Levy University as interns to recover and re-install lost Sundews.

We also recently brought in the esteemed Jackson Howard to assist with our cloning initiatives at Jinteki. He's been invaluable in not only helping accelerate R&D on Sundews, but also provoking runners to spend two clicks to approach him, and resurrecting cancelled but promising projects.

I will now turn the call over to Chairman Hiro to share the measures we've taken this previous quarter with cutting our operating costs.

--- Slide: Protect Ya Neck // Traps ---

HIRO: As you know, we retired our long-running Junebug bioengineering project to make way for inexpensive Shocks, which have performed splendidly in deterring unwarranted access to Jinteki's HQ, R&D labs, and especially Archives. We have continued to support Snares as an additional disincentive, and employ a Ronin as both a distraction and a potential punishment for careless runners.

We have capitalized on Hokusai Grids built to protect weak points where runners can access, serving as stopgaps until we can install stronger ICE. These facilities are expensive for intruders to disable, and runners sometimes avoid them completely, expecting them to be safeguarded by Ash and Caprice. When we've taken advantage of the Grid to install certain confidential AI agendas in a lightly protected or unprotected server, it's been to our benefit, as runners must pay a pound of flesh to acquire those agendas -- we've also been able to turn around and convert those vulnerable facilities into super servers for future use.

-- Slide: Only Built for Caprice Linx // Upgrades --

As Mr. Sakai noted earlier, we have partnered with Haas-Bioroid for a limited exchange of tech, which includes the company's Ash bioroid. Intruders to our servers will need to waste another click, as well as additional credits in their repeated run through our ICE, to access any assets or agendas, provided we can outspend them through trace bids.

We have also recently welcomed Ms. Caprice Nisei back to the fold and integrated her into our countermeasures, utilizing the uncanny abilities and detective skills she picked up during her time working with New Angeles PD to block illegal incursions into our central and remote servers.

For runners who do manage to make it past our defenses and even siphon our funds, we have an agreement with media corporation NBN allowing us to track these criminals when possible to close their accounts. Furthermore, we've created a joint venture for a new program that encourages runners to make a move when they otherwise wouldn't want to, or generate free credits when they delay their attacks. We are considering other alternatives to disrupt runner activity, too.

Our sysop Midori will be able to talk more about the lengths we've gone to in order to protect our servers.

-- Slide: Clan In Da Front // ICE --

MIDORI: Okay, while we tend to push out much fewer ICE than some of our competitors, we try to make up for it with adaptable ICE like Chimera, cheap but annoying ICE like Yagura, and expensive-to-break Tsurugis. Yeah, we've taken some flack for using Shinobi ICE, but believe me, no low-link hacker wants to run into one of those on a central server before attempting a remote run. Still, we are looking into eventually replacing our Shinobis with Komainus, if not other alternatives.

We've also borrowed NBN's RSVP ICE that makes it extremely difficult for runners to trash our assets, not to mention to get through Caprice or Ash. We have agendas that intruders won't be able to even take away with them unless they can break RSVP's subroutine, that's how great the ICE is.

If we need to make adjustments to our setup, we have the option of bringing in Akitaro to get everything loaded -- keeping those Chimeras up is no sweat for him. Just don't ask how he does it, haha.

I think that's all I had to mention regarding our ICE. I'll hand this back over to our chairman.

-- Slide: Can It All Be So Simple // Agendas --

HIRO: Thank you, Midori. Before we get into the Q&A, I'd like to mention that we have some very exciting opportunities ahead of Jinteki, including improvements on our Nisei line that allow us to further delay would-be hackers. And thanks to our ties to the New Angeles PD -- through Commissioner Dawn and Ms. Caprice Nisei's work there -- as well as the nature of our classified projects, it's become more difficult and expensive for runners to steal our work. With developments down the line like our Future Perfect program, we can make it near impossible.

We also have other non-cloning advancements we'll announce in the near future, coming out of our biomedical Harmony Medtech division and our stealth groups at the Tennin Institute. That's not to say we intend to pivot our focus away from cloning, however. Cloning has the potential to replicate perfection. Let me repeat that: cloning has the potential to replicate perfection. Should we aspire to anything less?

With that, I'd like to open the call to questions.