Briefing Materials on Financial Results for the First Quarter of the Fiscal Year Ending March 2027 | Hammock Inc. (173A) timely disclosure

Worth reading

81Important

Scored from 4 of 6 sections

Direction

Improvement

Direction inferred from the company’s description.

Scale

¥ million

Wording

Conditional

How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFirst quarter of the fiscal year ending March 20276 items taken from the company’s own explanation

Financial Results Figures (The key points of this material are explained below)

Net Sales¥1,212 million+6.6%

Operating profit¥121 million+22.2%

Ordinary income¥125 million+34.7%

Net income¥81 million+29.9%

Selling, general and administrative expenses¥344 million

Gross Profit Margin

Rate38.4%

Operating profit margin

Rate10.0%

Results for the three months of the current quarter

Net Sales¥1,212 million

Operating profit¥121 million

Ordinary income¥125 million

Quarterly net income¥81 million

Full-year earnings forecast

Net Sales

¥5,287 million

Gross profit

¥2,223 million

Selling, general and administrative expenses

¥1,339 million

Operating profit

¥883 million

Ordinary income

¥899 million

Net income for the current fiscal year

¥585 million

Earnings per share

¥138.98

Dividend per share

¥65.00

Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。

Net Sales22.9%

Gross profit20.9%

Selling, general and administrative expenses25.7%

Operating profit13.7%

Ordinary income14.0%

Quarterly net income14.0%

What the company explained in this material

Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.

Cloud+¥84 million
Maintenance and subscriptions–¥12 million
On-premisesOperating loss of ¥9 million
Sales DX Solutions+¥13 million
AI Data Entry Solutions△¥0 million
Other (services, etc.)+¥0 million

New initiatives

Expansion of AssetView Cloud＋ functionality
Launch an AI-powered risk detection option
Commence provision of MDR services
Expansion into the security field through enhanced security features
Integration with SentinelOne, HotProfile and Microsoft Defender
Provision of AI-powered functions to support the accumulation and summarization of sales data, company research and proposal preparation

Key KPIsA metric the company considers important as a management benchmark.

Cloud services ARR¥1,565 million
Year on year against the same period last year+26.6%
ARR (excluding OEM)¥1,202 million
Year on year against the same period last year+9.6%
Recurring revenue ratio89.3%
Cloud services revenue ratio for Network Solutions50%
Churn rate for Network Solutions0.40%
Churn rate for Sales DX Solutions (excluding OEM)0.70%

Segment results

Network Solutions

Net Sales¥776 million

Year on year against the same period last year+8.7%

Sales DX Solutions

Net Sales¥334 million

Year on year against the same period last year+4.1%

AI Data Entry Solutions

Net Sales¥102 million

Year on year against the same period last year△0.7%

Annual Dividend

Annual dividend per share¥65.00

Payout ratio

46.8%

Contents of this document
Item	Details
Document type	Presentation materials for financial results
Fiscal Period Covered	First quarter of the fiscal year ending March 2027
Net Sales	¥1,212 million (YoY +6.6%)
Operating profit	¥121 million (YoY +22.2%)
Ordinary income	¥125 million (YoY +34.7%)
Net income	¥81 million (YoY +29.9%)
Gross Profit Margin	Rate 38.4% / Year-on-year change (points) Not disclosed
Operating profit margin	Rate 10.0% / Year-on-year change (points) Not disclosed
Selling, general and administrative expenses	¥344 million
Results for the three months of the current quarter	Net Sales ¥1,212 million / Operating profit ¥121 million / Ordinary income ¥125 million / Quarterly net income ¥81 million
Full-year earnings forecast	Net Sales ¥5,287 million / Gross profit ¥2,223 million / Selling, general and administrative expenses ¥1,339 million / Operating profit ¥883 million / Ordinary income ¥899 million / Net income for the current fiscal year ¥585 million / Earnings per share ¥138.98 / Dividend per share ¥65.00
Progress against full-year forecast	Net Sales 22.9% / Gross profit 20.9% / Selling, general and administrative expenses 25.7% / Operating profit 13.7% / Ordinary income 14.0% / Quarterly net income 14.0%
Segment results	Network Solutions Net Sales ¥776 million / Year on year against the same period last year +8.7% / Profit Not disclosed / Sales DX Solutions Net Sales ¥334 million / Year on year against the same period last year +4.1% / Profit Not disclosed / AI Data Entry Solutions Net Sales ¥102 million / Year on year against the same period last year △0.7% / Profit Not disclosed
Breakdown of Factors Affecting the Change	Factors Cloud / Amount +¥84 million, Factors Maintenance and subscriptions / Amount –¥12 million, Factors On-premises / Amount Operating loss of ¥9 million, Factors Sales DX Solutions / Amount +¥13 million, Factors AI Data Entry Solutions / Amount △¥0 million, Factors Other (services, etc.) / Amount +¥0 million
Key KPIs	Indicator name Cloud services ARR / Value ¥1,565 million / Year on year against the same period last year +26.6%, Indicator name ARR (excluding OEM) / Value ¥1,202 million / Year on year against the same period last year +9.6%, Indicator name Recurring revenue ratio / Value 89.3% / Year on year against the same period last year Not disclosed, Indicator name Cloud services revenue ratio for Network Solutions / Value 50% / Year on year against the same period last year Not disclosed, Indicator name Churn rate for Network Solutions / Value 0.40% / Year on year against the same period last year Not disclosed, Indicator name Churn rate for Sales DX Solutions (excluding OEM) / Value 0.70% / Year on year against the same period last year Not disclosed
Annual Dividend	Annual dividend per share ¥65.00 / Interim and Year-End Breakdown Not disclosed
Payout ratio	46.8%
New initiatives	Expansion of AssetView Cloud＋ functionality, Launch an AI-powered risk detection option, Commence provision of MDR services, Expansion into the security field through enhanced security features, Integration with SentinelOne, HotProfile and Microsoft Defender, Provision of AI-powered functions to support the accumulation and summarization of sales data, company research and proposal preparation

Items this document does not state (13)

Self-assessment against the planUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

In Network Solutions, cloud services revenue was strong, driven by the acceleration of implementations of AssetView Cloud＋. In Sales DX Solutions, renewals by existing customers and new business remained solid. Meanwhile, AI Data Entry Solutions posted lower revenue due to a decline in usage-based fees for WOZE. Operating income benefited from higher revenue and lower selling, general and administrative expenses, although communications expenses and depreciation increased.

How to read this page

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