Earnings Presentation for the Second Quarter of the Fiscal Year Ending March 2027 | Hammock Inc. (173A) timely disclosure

Worth reading

51Recurring

Scored from 5 of 6 sections

Direction

Mixed performance

Direction inferred from the company’s description.

Scale

124

¥ million (year-on-year change in net sales)

Wording

Definitive

How definitive the wording is.

Contents of this document

Earnings presentationSecond 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¥2,507 million+5.2%

Operating profit¥345 million0.0%

Ordinary income¥356 million+0.6%

Net income¥232 million-11.8%

Selling, general and administrative expenses¥641 million

Gross Profit Margin

Rate39.4%

Operating profit margin

Rate13.8%

Results for the three months of the current quarterNot disclosed (quarterly standalone financial figures cannot be confirmed)

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 Sales47.4%

Gross profit44.4%

Selling, general and administrative expenses47.9%

Operating profit39.1%

Ordinary income39.6%

Quarterly net income39.7%

What the company explained in this material

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

Sales+¥124 million (+5.2%)

Personnel expenses (cost of sales)+¥22 million (+5.0%)

Outsourcing expenses (cost of sales)-¥12 million (-4.9%)

Depreciation and amortization+¥26 million (+8.6%)

Communication expenses+¥83 million (+38.7%)

Other (cost of sales)+¥20 million (+13.7%)

Personnel expenses (SG&A expenses)-¥15 million (-4.9%)

Advertising expenses-¥18 million (-23.3%)

Other SG&A expenses+¥18 million (+7.1%)

Operating profit+¥0 million (+0.0%)

New initiatives

Expansion of AssetView Cloud＋ functionality
Launch an AI-powered risk detection option
Commence provision of MDR services
Expansion into the security sector through enhanced security features
Development of new solutions using corporate data and AI

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

Company-wide recurring revenue ARR¥4,476 million
Year on year against the same period last year+9.0%
Network Solutions cloud services ARR¥1,694 million
Year on year against the same period last year+25.2%
Sales DX Solutions ARR (excluding OEM)¥1,202 million
Year on year against the same period last year+7.0%
Recurring revenue ratio87.3%
Cloud services revenue ratio for Network Solutions49%
Churn rate for Network Solutions0.36% (September)
Sales DX Solutions churn rate (excluding OEM)0.73% (September)

Segment results

Network Solutions

Net Sales

¥1,618 million

Year on year against the same period last year+7.9%

Sales DX Solutions

Net Sales

¥683 million

Year on year against the same period last year+1.1%

AI Data Entry Solutions

Net Sales

¥205 million

Year on year against the same period last year-0.5%

Annual Dividend

Annual dividend per share¥65.00

Payout ratio

46.8%

Contents of this document
Item	Details
Document type	Earnings presentation
Fiscal Period Covered	Second quarter of the fiscal year ending March 2027
Net Sales	¥2,507 million (YoY +5.2%)
Operating profit	¥345 million (YoY 0.0%)
Ordinary income	¥356 million (YoY +0.6%)
Net income	¥232 million (YoY -11.8%)
Gross Profit Margin	Rate 39.4% / Year-on-year change (points) Not disclosed
Operating profit margin	Rate 13.8% / Year-on-year change (points) Not disclosed
Selling, general and administrative expenses	¥641 million
Results for the three months of the current quarter	Not disclosed (quarterly standalone financial figures cannot be confirmed)
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 47.4% / Gross profit 44.4% / Selling, general and administrative expenses 47.9% / Operating profit 39.1% / Ordinary income 39.6% / Quarterly net income 39.7%
Segment results	Network Solutions Net Sales ¥1,618 million / yoy_pct 7.9 / Sales DX Solutions Net Sales ¥683 million / yoy_pct 1.1 / AI Data Entry Solutions Net Sales ¥205 million / yoy_pct -0.5
Breakdown of Factors Affecting the Change	Sales +¥124 million (+5.2%) / Personnel expenses (cost of sales) +¥22 million (+5.0%) / Outsourcing expenses (cost of sales) -¥12 million (-4.9%) / Depreciation and amortization +¥26 million (+8.6%) / Communication expenses +¥83 million (+38.7%) / Other (cost of sales) +¥20 million (+13.7%) / Personnel expenses (SG&A expenses) -¥15 million (-4.9%) / Advertising expenses -¥18 million (-23.3%) / Other SG&A expenses +¥18 million (+7.1%) / Operating profit +¥0 million (+0.0%)
Key KPIs	Indicator name Company-wide recurring revenue ARR / Value ¥4,476 million / Year on year against the same period last year +9.0%, Indicator name Network Solutions cloud services ARR / Value ¥1,694 million / Year on year against the same period last year +25.2%, Indicator name Sales DX Solutions ARR (excluding OEM) / Value ¥1,202 million / Year on year against the same period last year +7.0%, Indicator name Recurring revenue ratio / Value 87.3% / Year on year against the same period last year Not disclosed, Indicator name Cloud services revenue ratio for Network Solutions / Value 49% / Year on year against the same period last year Not disclosed, Indicator name Churn rate for Network Solutions / Value 0.36% (September) / Year on year against the same period last year Not disclosed, Indicator name Sales DX Solutions churn rate (excluding OEM) / Value 0.73% (September) / 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 sector through enhanced security features, Development of new solutions using corporate data and AI

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.

Revenue increased on the growth of cloud services. Operating profit was at the same level as in the year-earlier period, as increases in procurement costs, depreciation and amortization, communications expenses and other costs had an impact. Net profit for the quarter decreased due to lower extraordinary gains.

How to read this page

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