Shifting to a Subscription-Based Business Through Cloud Services

「以上の結果、売上高については、ストック型売上であるクラウド利用料の順調な増加に加え、クラウド初期構築において既存アプリの機能追加等の売上など増加要因があった一方で、前年同四半期にライセンス販売において消防防災を中心に新規・更新受注があった反動等が減少要因となり、325,839千円（前年同四半期比7.4％増）となりました。」

「Revenue from cloud usage fees and initial cloud setup steadily increased, changing the revenue mix by product category.」

「Cloud usage fees 440,531 109.0」

「Customer acquisition for the NET119 Emergency Call System, Live119 (Video Emergency Reporting System), Live-X (Video Calling System), DMaCS (Disaster Information Sharing Service), and smartphone applications for government agencies and police progressed smoothly. Existing contracts were renewed and new customers were acquired, increasing the number of contracts and generating revenue of ¥824,974 thousand, up 7.9% from the previous fiscal year.」

「In addition to the steady increase in cloud usage fees, a source of recurring revenue, completion of initial cloud setup and large-scale initial SI development contributed to growth.」

「Cloud usage fees, a source of recurring revenue, increased steadily as the number of contracts accumulated.」

「As a result, while cloud usage fees, a source of recurring revenue, increased steadily as the number of contracts accumulated, the partial termination of a message distribution service for responding to the coronavirus pandemic was a negative factor. In addition, new orders increased in license sales, primarily for firefighting and disaster preparedness, while higher orders for new installations and replacements contributed to product sales, resulting in revenue of ¥551,238 thousand, up 6.4% year on year.」

「Cloud usage fees, a source of recurring revenue, increased steadily as the number of contracts accumulated.」

「Customer acquisition for the NET119 Emergency Call System, Live119 (Video Emergency Reporting System), DMaCS (Disaster Information Sharing Service), and smartphone applications for government agencies and police progressed smoothly. Existing contracts were renewed and new customers were acquired, increasing the number of contracts and generating revenue of ¥713,721 thousand, up 16.1% from the previous fiscal year.」

「Cumulative third-quarter revenue increased 18.7% year on year to ¥984,560 thousand, as contracts for various cloud services, including Live119, DMaCS and NET119, accumulated, recurring usage-fee income increased steadily, and contract development related to initial cloud setup and system development in on-premise environments progressed smoothly.」

「As a result, cumulative second-quarter revenue was ¥517,896 thousand, down 1.5% year on year. Contracts for various cloud services, including Live119 and DMaCS, accumulated and recurring usage-fee income increased steadily, while contract development related to initial cloud setup and system development in on-premise environments generally progressed as planned. However, fewer projects reached their delivery dates in the second quarter than in the previous corresponding period.」

「As a result, revenue increased to ¥272,413 thousand, up 27.5% year on year, as the number of cloud service contracts accumulated, recurring usage-fee income increased steadily, and contract development revenue related to initial cloud service setup remained firm.」

「Revenue increased to ¥1,222,077 thousand, up 9.2% from the previous fiscal year, as the renewal of existing contracts and accumulation of new contracts for cloud services for local governments increased usage-fee income and contract development revenue related to initial setup.」

「Although license sales declined from the previous corresponding period, revenue for the cumulative third quarter increased 14.7% year on year to ¥829,206 thousand, reflecting higher usage-fee income from cloud services as well as increased revenue from contract development projects involving geographic information system development and initial cloud service setup.」

「Although license sales declined from the previous corresponding period, revenue for the cumulative second quarter increased 16.9% year on year to ¥525,752 thousand, reflecting higher contract development revenue related to initial cloud service setup and increased usage-fee income from cloud services.」

「The number of cloud service contracts accumulated and recurring usage-fee income increased steadily, but」

「Customer acquisition for the NET119 Emergency Call System, DMaCS (Disaster Information Sharing Service), and smartphone applications through which local governments and police distribute disaster preparedness and crime prevention information progressed smoothly. Existing contracts were renewed and new customers were acquired, increasing the number of contracts and generating cloud usage-fee income of ¥520,048 thousand, up 26.0% from the previous fiscal year.」

「Although contract development revenue declined year on year because of differences in the timing of customer acceptance, revenue increased 8.4% year on year to ¥723,164 thousand as new contracts accumulated and cloud service usage-fee income increased.」

「Although license sales declined and contract development revenue decreased because delivery dates for many projects were concentrated in the third quarter or later, with fewer projects reaching their delivery dates during the period than in the previous corresponding period, revenue increased 2.9% year on year to ¥449,688 thousand due to higher usage-fee income from cloud services.」

「As a result, revenue increased 12.6% year on year to ¥219,134 thousand, operating profit increased 7.8% to ¥54,889 thousand, ordinary profit increased 6.7% to ¥55,266 thousand, and net income for the quarter increased 0.2% to ¥38,137 thousand, as the number of contracts for cloud services including the NET119 Emergency Call System accumulated and recurring usage-fee income steadily increased.」

「Cloud usage-fee income was ¥412,729 thousand, up 21.4% from the previous fiscal year, as the number of contracts for the NET119 Emergency Call System, DMaCS (Disaster Information Sharing Service), and smartphone applications through which local governments provide disaster preparedness and crime prevention information to residents accumulated through new orders.」

「Although contract development revenue declined 11.5% year on year because of the timing of customer acceptance, revenue increased 10.5% year on year to ¥667,060 thousand, mainly because cloud service usage-fee income increased 19.8%.」

「As a result, revenue increased to ¥436,973 thousand, up 36.0% year on year, reflecting higher usage-fee income as the number of cloud service contracts accumulated, increased contract development revenue from initial setup work associated with new cloud service contracts, and a large license order.」

「As a result, revenue increased to ¥194,554 thousand, up 36.3% year on year, reflecting a large license order and higher usage-fee income as the number of cloud service contracts accumulated.」

「New contracts for our core services, including the NET119 Emergency Call System and DMaCS (Disaster Information Sharing Service), progressed smoothly. We also actively marketed cloud services through which local governments provide disaster preparedness and crime prevention information to residents, resulting in an accumulation of contracts and cloud usage-fee income of ¥339,861 thousand, up 16.9% from the previous fiscal year.」

「As a result, revenue for the cumulative third quarter increased 8.0% year on year to ¥603,550 thousand, reflecting higher contract development revenue from crime prevention and disaster preparedness systems for local governments and increased usage-fee income from cloud services.」

「As a result, revenue increased to ¥321,236 thousand, up 17.3% year on year, as usage-fee income rose with the accumulation of cloud service contracts and contract development revenue increased, including the recognition of initial setup fees for cloud services.」

「As a result, revenue was ¥142,718 thousand, up 12.0% year on year, reflecting increased license sales and higher usage-fee income as the number of cloud service contracts accumulated.」

「New contracts for our core service, the NET119 Emergency Call System, progressed smoothly. We also actively proposed smartphone applications through which local governments provide disaster preparedness and crime prevention information to residents and cloud services that centrally manage information during major disasters such as earthquakes. As a result, the number of contracts accumulated and cloud usage-fee income was ¥290,849 thousand, up 21.3% from the previous fiscal year.」

「Increase in usage-fee income from cloud services related to disaster preparedness for local governments」

「Cloud usage-fee income increased year on year as the number of contracts accumulated.」

「We worked to expand sales nationwide with the aim of achieving broad adoption of cloud services related to disaster preparedness, including the NET119 Emergency Call System, while focusing on winning contract development projects for facility-management systems used by electric utilities and disaster preparedness and crime prevention systems used by local governments. As a result, although income from cloud usage fees increased,」

「Cloud usage-fee income was ¥239,733 thousand, up 35.9% from the previous fiscal year, as the number of contracts for cloud services related to disaster preparedness, including the NET119 Emergency Call System, increased through new orders.」

「As a result, revenue for the cumulative third quarter increased 3.9% year on year to ¥534,739 thousand, reflecting an increase in usage-fee income from cloud services related to disaster preparedness for local governments.」

「Although revenue from cloud usage fees related to disaster preparedness increased, contract development revenue declined because many projects had delivery dates in the third quarter or later, resulting in revenue of ¥283,981 thousand, down 1.8% year on year.」

「As a result, revenue for the cumulative first quarter was ¥150,083 thousand, up 52.9% year on year, reflecting the recognition of revenue from contract development that remained outstanding at the end of the previous fiscal year and an increase in cloud usage-fee income, primarily from the NET119 Emergency Call System.」

「Cloud services are rapidly expanding in the information services industry, and we are also shifting our business toward a recurring-revenue model that generates regular income by providing map- and location-related information through the cloud.」