Decline in TOSYS Profit Due to Costs of Strengthening the Social Systems Business
First written in FY2019-Q1. . Latest entry: FY2024-Q2.
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- FY2024-Q2Slight decline in orders, increases in revenue and profitAnnual report
「The TOSYS Group received orders totaling ¥17,190 million, down 0.4% year on year, due to the impact of a decline following the peak in large projects in the social systems-related business. As construction work progressed steadily in equipment construction work from telecommunications carriers and the social systems-related business, revenue was ¥15,048 million, up 8.9%, and operating profit was ¥621 million, up 38.5%.」
For the TOSYS Group, orders received declined slightly due to the decline following the peak in large projects, while revenue and operating profit increased as construction work progressed. - FY2024-Q1Lower order intake, higher revenue and profitAnnual report
「The TOSYS Group received orders totaling ¥8,072 million, down 18.3% year on year, due to the impact of declines following the peak in equipment construction orders from telecommunications carriers and large projects in the social systems business. The Group worked to secure orders for equipment construction and maintenance from telecommunications carriers and reduce various expenses. As a result, revenue was ¥6,949 million, up 9.0%, and operating profit was ¥154 million, up 72.4%.」
Although orders received declined for the TOSYS Group, revenue and operating profit increased through orders for equipment construction and maintenance and expense reductions. - FY2023-Q2Higher order intake, revenue and profitAnnual report
「Amid a decline following the peak in advanced wireless environment development projects and lower capital investment by telecommunications carriers, the TOSYS Group worked to expand orders for IT solutions, electrical equipment and public-sector projects. As a result, orders received totaled ¥17,260 million, up 20.2% year on year, revenue totaled ¥13,816 million, up 5.2%, and operating profit totaled ¥448 million, up 1.1%.」
Despite the decline following the peak in advanced wireless environment development projects and lower capital investment by telecommunications carriers, increased orders for IT solutions, electrical equipment and public-sector projects resulted in higher orders, revenue and operating profit. - FY2023-Q1Decline in profit due to material delays and low-margin projectsAnnual report
「The TOSYS Group received orders totaling ¥9,878 million, up 44.2% year on year, due to increased orders for equipment construction work from telecommunications carriers, as well as progress in orders for IT solutions, electrical equipment and public-sector projects. Due to delays in construction progress caused by delays in material delivery, the decline following the peak in advanced wireless environment development projects, and the impact of low-margin projects, revenue was ¥6,376 million, down 4.8%, and operating profit was ¥89 million, down 74.1%.」
Although orders received increased for the TOSYS Group, delays in material delivery, the decline following the peak in advanced wireless environment development projects, and low-margin projects were factors behind the decreases in revenue and operating profit. - FY2022-Q3Declining revenue and higher profitAnnual report
「The TOSYS Group received orders totaling ¥21,952 million, down 11.5% year on year, due to decreases in equipment construction work from telecommunications carriers and IT solutions-related construction work, including GIGA School projects. Although revenue declined 0.5% to ¥20,268 million due to a decrease in the completion of carried-over projects and fewer GIGA School projects, operating profit increased 6.7% to ¥887 million due to the completion of high-margin projects.」
For the TOSYS Group, operating profit increased through the completion of high-margin projects, despite declines in orders and revenue. - FY2022-Q1Wider increases in revenue and profitAnnual report
「The TOSYS Group recorded orders received of ¥6,850 million, up 2.7% year on year, revenue of ¥6,700 million, up 14.1%, and operating profit of ¥344 million, up 175.7%, due to increased orders for the NTT-related business and advanced wireless environment development projects, as well as the completion of carried-over projects.」
The TOSYS Group achieved higher revenue and a substantial increase in profit through increased orders for the NTT-related business and advanced wireless environment development projects, as well as the completion of carried-over projects. - FY2021-Q3Wider increases in revenue and profitAnnual report
「Orders received totaled ¥24,817 million, up 12.6% year on year, due to increased orders for the NTT-related business and IT solutions business. Revenue totaled ¥20,364 million, up 18.8%, as the NTT-related business and social infrastructure business performed steadily. Operating profit increased to ¥831 million, up 365.9%, as a result of efforts to improve gross margins and reduce costs.」
For the TOSYS Group, operating profit increased 365.9% year on year through higher orders and revenue, as well as improved gross margins and cost reductions. - FY2021-Q2Wider increases in revenue and profitAnnual report
「Orders received totaled ¥16,597 million, up 6.5% year on year, due to increased orders for the IT solutions business and social systems-related business. As the NTT-related business performed steadily, revenue totaled ¥12,517 million, up 18.4%. Although the number of low-gross-margin projects in the NTT-related business increased, operating profit rose to ¥335 million, up 308.3%, due to improved gross margins on other projects and lower costs resulting from the cancellation and postponement of various events during the COVID-19 pandemic.」
Although the increase in low-gross-margin projects remained a factor, the TOSYS Group achieved higher revenue and a 308.3% increase in operating profit through improved gross margins on other projects and lower costs resulting from the cancellation and postponement of events. - FY2021-Q1Revenue growth and return to profitabilityAnnual report
「受注高 at TOSYS Group declined 16.3% year on year to ¥6,671 million owing to lower orders for NTT-related businesses, but sales in the NTT facilities and IT solutions businesses remained solid, with revenue rising 30.6% year on year to ¥5,871 million. Operating profit was ¥125 million, compared with no comparable figure in the previous year, due to the impact of higher sales.」
Operating profit was ¥125 million, driven by higher revenue from IT solutions and other businesses, rather than the previously cited increase in costs and decrease in completed construction work in the social systems-related business. - FY2020-Q3Record decline in profit rateAnnual report
「Following a change in the allocation of the Matsumoto and Nagaoka areas with Nippon COMSYS implemented from the second-quarter consolidated accounting period, orders received totaled ¥22.03 billion, up 31.9% year on year, and revenue totaled ¥17.13 billion, up 15.4%. Operating profit was ¥170 million, down 69.0%, due in part to higher costs associated with the area change.」
Higher costs associated with the change in the allocation of the Matsumoto and Nagaoka areas were cited as a factor behind the TOSYS Group's decline in profit for the cumulative third quarter, with operating profit down 69.0% year on year. - FY2020-Q2Change in the factors behind the decline in earningsAnnual report
「Orders received totaled ¥15.57 billion, up 48.7% year on year, due in part to an increase in orders for the NTT facilities business and the social systems-related business. Revenue was ¥10.57 billion, up 6.8%, following a change in the allocation of the Matsumoto and Nagaoka areas with Nippon COMSYS implemented from the second-quarter consolidated accounting period. Operating profit was ¥80 million, down 71.7%, due to higher costs associated with the area change.」
The factor behind the TOSYS Group's decline in profit changed from the previously cited costs to strengthen the organizational structure and decrease in completed construction work to higher costs associated with the change in the allocation of the Matsumoto and Nagaoka areas. - FY2020-Q1Losses due to a decrease in completed construction workAnnual report
「Orders received totaled ¥7.97 billion, up 29.8% year on year, due in part to an increase in orders for NTT-related businesses. However, due to a decrease in completed construction work in the NTT facilities business and the social systems-related business, revenue was ¥4.49 billion, down 12.8%, and the decline in revenue resulted in an operating loss of ¥10 million, compared with the previous year's figure of —.」
For the TOSYS Group, the decrease in completed construction work in the NTT facilities business and the social systems-related business, rather than the previously cited costs to strengthen the organizational structure, was cited as a factor behind the decline in revenue and the operating loss. - FY2019Disappearance of factors behind the decline in profit; increase in profitAnnual report
「Amid expectations of declining revenue from telecommunications carriers, the TOSYS Group worked to expand revenue through M&A, develop products using IT and AI technologies, and expand its core businesses through group collaboration. It also worked to improve operations through the use of RPA and promote work-style reform, while pursuing expense reductions. As a result, orders received totaled ¥23.38 billion, up 4.9% year on year, and revenue totaled ¥23.83 billion, up 2.8%. Operating profit also increased to ¥1.42 billion, up 2.6%, as a result of ongoing expense-reduction measures.」
For the full year, profit increased through expense reductions and other measures, rather than the costs to strengthen the organizational structure of the social systems-related business cited through the previous quarter. - FY2019-Q3Change in factors behind the decline in profitAnnual report
「Due to a decrease in completed construction work in the social systems-related business, revenue was ¥14.85 billion, down 3.5% year on year, and operating profit was ¥570 million, down 7.8%.」
For the TOSYS Group, the decrease in completed construction work in the social systems-related business, rather than the previously cited costs to strengthen the organizational structure, was cited as a factor behind the decline in revenue and profit for the cumulative third quarter. - FY2019-Q2Record decline in profit rateAnnual report
「Orders received fell 6.0% year on year to ¥10.47 billion due in part to lower orders in the social systems-related business. However, revenue rose 1.4% to ¥9.9 billion as the NTT facilities business progressed smoothly. Operating profit fell 6.7% to ¥290 million, mainly because costs associated with strengthening the structure of the social systems-related business increased.」
For the TOSYS Group, the increase in costs to strengthen the organizational structure of the social systems-related business was cited as a factor behind the 6.7% year-on-year decline in operating profit. - FY2019-Q1First statedAnnual report
「As the NTT facilities business progressed smoothly, orders received rose 13.6% year on year to ¥6.14 billion and revenue rose 9.5% to ¥5.15 billion. However, operating profit fell 15.4% to ¥160 million, mainly because costs associated with strengthening the structure of the social systems-related business increased.」
In the TOSYS Group, orders received and revenue increased, while operating profit fell 15.4% year on year due to higher costs for strengthening the structure of the social systems-related business.