Mitigating Seasonal Fluctuations Through Staged Orders, Partial Revenue Recognition and Subscription Revenue
First written in FY2025-H1. 3 of 4 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2020: 1 of 6 companies on the "Worse" side.
4 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「To reduce cash flow risk arising from seasonal revenue fluctuations, the Group is more carefully reviewing the contract terms of large, long-term engineering consulting projects and clarifying the timing of revenue and profit recognition, or the units of revenue recognition, more appropriately. It is also expanding the introduction of subscription-based business models in products services to spread the timing of revenue.」
The Group continues to spread revenue timing by clarifying revenue-recognition units and expanding subscriptions. - FY2026-H1RestatedAnnual report
「The Group tends to deliver completed products between the end of March and the end of June, when many customers close their fiscal years. Because this period also corresponds to the revenue-recognition timing for relatively large projects, revenue and operating expenses in the third and fourth quarters tend to be higher than in other quarterly consolidated accounting periods.」
The Group reaffirmed the seasonal concentration of deliveries and revenue recognition for large projects in the third and fourth quarters. - FY2025RestatedAnnual report
「To reduce cash flow risk arising from seasonal revenue fluctuations, the Group is more carefully reviewing the contract terms of large, long-term engineering consulting projects and clarifying the timing of revenue and profit recognition, or the units of revenue recognition, more appropriately. It is also expanding the introduction of subscription-based business models in products services to spread the timing of revenue.」
The Group continues to mitigate seasonality through phased orders, partial revenue recognition and subscriptions, and additionally explains the clarification of revenue-recognition units. - FY2025-H1First statedAnnual report
「For large, long-term projects in engineering consulting, the Group negotiates phased orders and partial revenue recognition. In products services, it is introducing subscription-based business models to spread the timing of revenue and reduce cash flow risk arising from seasonal revenue fluctuations.」
The Group describes measures to spread revenue timing and mitigate second-half concentration and cash flow risk by phasing orders and revenue recognition and generating subscription income.