Risk of unprofitable projects
First written in FY2016. 10 of 34 entries say "Mitigated", first in FY2018-Q1. Latest entry: 2026-08-05.
Cross Cat moved to the "Worse" side of this theme in 2026, 4 years after the typical company in this theme (2022).
The whole theme swung hardest in 2024: 17 of 54 companies on the "Worse" side.
12 other companies' latest entry also says "Worsened".
- 2026-08-05WorsenedEarnings
「Provision for loss on orders 11,962 34,650」
The balance of the provision for loss on orders increased from ¥11,962 thousand at the end of the previous fiscal year to ¥34,650 thousand at the end of the first quarter, indicating an increase in anticipated losses associated with unprofitable projects. - FY2026WorsenedAnnual report
「The provision for loss on contracts included in cost of sales was ¥— thousand in the previous consolidated fiscal year and ¥11,962 thousand in the current consolidated fiscal year.」
A ¥11,962 thousand provision for loss on contracts, which had not been recognized in the previous fiscal year, was recognized, and the balance of the provision for loss on contracts increased from ¥248 thousand to ¥11,962 thousand. Expected losses associated with unprofitable projects increased in the annual financial figures. - FY2026-H1WorsenedAnnual report
「Provision for loss on contracts 248 11,962」
The balance of the provision for loss on contracts increased from ¥248 thousand at the end of the previous fiscal year to ¥11,962 thousand at the end of the interim period. Expected losses associated with unprofitable projects increased in the financial figures. The change in the provision for loss on contracts during the interim period was ¥11,714 thousand. - FY2025MitigatedAnnual report
「Provision for loss on contracts 9,311 248」
The balance of the provision for loss on contracts fell sharply from ¥9,311 thousand at the end of the previous fiscal year to ¥248 thousand, and the current fiscal year's provision for loss on contracts was zero. Expected losses associated with unprofitable projects are declining. - FY2025-H1MitigatedAnnual report
「Provision for loss on contracts 9,311 6,452」
The balance of the provision for loss on contracts decreased from ¥9,311 thousand at the end of the previous consolidated fiscal year to ¥6,452 thousand at the end of the interim consolidated accounting period, reducing expected losses associated with unprofitable projects. - FY2024-Q3WorsenedAnnual report
「Provision for loss on contracts 8,175 8,379」
The balance of the provision for loss on contracts increased from ¥8,175 thousand at the end of the previous consolidated fiscal year to ¥8,379 thousand at the end of the third quarter, and expected losses associated with unprofitable projects continue to be reflected in the financial figures. - FY2024-Q2MitigatedAnnual report
「Provision for loss on contracts 8,175 6,555」
The balance of the provision for loss on contracts decreased from ¥8,175 thousand at the end of the previous fiscal year to ¥6,555 thousand at the end of the second quarter. Expected losses associated with unprofitable projects remain, but the balance is declining. - FY2024-Q1MitigatedAnnual report
「Provision for loss on contracts 8,175 7,036」
The balance of the provision for loss on contracts decreased from ¥8,175 thousand at the end of the previous fiscal year to ¥7,036 thousand at the end of the first quarter. Expected losses associated with unprofitable projects remain, but the balance is declining. - FY2023MitigatedAnnual report
「Provision for loss on contracts 10,709 8,175」
The balance of the provision for loss on contracts decreased from ¥10,709 thousand at the end of the previous fiscal year to ¥8,175 thousand, and the current fiscal year's provision for loss on contracts included in cost of sales was zero. However, a balance continues to be recognized. - FY2023-Q3WorsenedAnnual report
「Provision for loss on contracts 10,709 2,852」
The provision for loss on contracts decreased from ¥10,709 thousand at the end of the previous consolidated fiscal year to ¥1,191 thousand at the end of the second quarter, then stood at ¥2,852 thousand at the end of the third quarter. The balance increased from the previous quarter, and expected losses associated with unprofitable projects continue to be reflected in the financial figures. - FY2023-Q2MitigatedAnnual report
「Provision for loss on contracts 10,709 1,191」
The provision for loss on contracts decreased from ¥10,709 thousand at the end of the previous consolidated fiscal year to ¥1,191 thousand at the end of the second quarter, but a balance continues to be recognized. - FY2023-Q1Decrease in the provision for losses on ordersAnnual report
「Provision for loss on contracts 10,709 5,421」
The provision for loss on contracts decreased from ¥10,709 thousand at the end of the previous consolidated fiscal year to ¥5,421 thousand at the end of the first quarter, but a balance continues to be recognized. - FY2022MaterialisedAnnual report
「The provision for loss on contracts included in cost of sales was as follows: Previous consolidated fiscal year: ¥— thousand; Current consolidated fiscal year: ¥10,709 thousand」
A ¥10,709 thousand provision for loss on contracts, which had not been recognized in the previous fiscal year, was recognized, bringing expected losses associated with unprofitable projects into the annual financial figures. - FY2022-Q2MaterialisedAnnual report
「Provision for loss on contracts - 1,449」
A ¥1,449 thousand provision for loss on contracts, which had not been recognized at the end of the previous consolidated fiscal year, was recognized at the end of the second quarter, bringing expected losses associated with unprofitable projects into the financial statements. - FY2022-Q1MaterialisedAnnual report
「Provision for loss on contracts - 523」
A ¥523 thousand provision for loss on contracts, which had not been recognized at the end of the previous consolidated fiscal year, was recognized at the end of the first quarter, bringing expected losses associated with contracts into the financial statements. - FY2021-Q3RestatedAnnual report
「During the cumulative third quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
It states that there have been no occurrences or material changes regarding the risk of unprofitable projects. - FY2021-Q2RestatedAnnual report
「During the cumulative second quarter under review, there were no significant changes in the matters described in this quarterly report regarding the business and accounting conditions that management recognizes could materially affect the financial position, operating results and cash flows of the consolidated companies, or in the “Business and Other Risks” described in the securities report for the previous fiscal year.」
It states that there have been no occurrences or material changes regarding the risk of unprofitable projects. The statement of cash flows shows no change in the provision for loss on orders recognised during the period. - FY2021-Q1RestatedAnnual report
「During the three-month period ended 30 June, there were no new risks that management recognizes as having the potential to materially affect the financial position, operating results or cash flows of the consolidated companies, and no material changes to the business risks described in the annual securities report for the previous fiscal year.」
It states that there have been no new occurrences or material changes regarding the risk of unprofitable projects. - FY2020RestatedAnnual report
「In system development, estimates are prepared for each process, and the company works to manage quality through QMS and CMMI and monitor projects through the PMO. However, quality or schedule problems may arise during the development process due to unforeseeable factors, and defects or other problems may be discovered only after a system enters the operational phase. If such circumstances result in an unprofitable project, this could affect operating results.」
While managing projects through QMS, CMMI and the PMO, it continues to identify the risk that quality problems, schedule problems and defects could make projects unprofitable. - FY2020-Q3RestatedAnnual report
「No new business or other risks arose during the nine months ended 31 December. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
It states that there have been no new occurrences or material changes regarding the risk of unprofitable projects. - FY2020-Q2MaterialisedAnnual report
「Provision for loss on orders - ¥410 thousand」
A provision for loss on orders, which had not been recognised at the end of the previous fiscal year, was recognised at ¥410 thousand at the end of the second quarter of the current fiscal year, indicating in the financial statements an expected loss associated with orders. - FY2020-Q1RestatedAnnual report
「No new business or other risks arose during the three months ended 30 June. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
It states that there have been no new occurrences or material changes regarding the risk of unprofitable projects. - FY2019MitigatedAnnual report
「The amount transferred to the provision for loss on orders included in cost of sales was ¥2.500 million in the previous fiscal year and nil in the current fiscal year.」
The amount transferred to the provision for loss on orders recognised in the previous fiscal year was zero in the current fiscal year, indicating that the expected loss on orders had been eliminated from the financial statements. - FY2019-Q2MitigatedAnnual report
「Provision for loss on orders ¥2.500 million -」
The ¥2.500 million provision for loss on orders recognised at the end of the previous fiscal year was zero at the end of the second quarter of the current fiscal year, indicating that the expected loss on orders had been eliminated from the financial statements. The business and other risks section states that there are no new risks or material changes. - FY2019-Q1RestatedAnnual report
「No new business or other risks arose during the three months ended 30 June. There were also no material changes to the business and other risks described in the securities report for the previous fiscal year.」
It states that there have been no new occurrences or material changes regarding the risk of unprofitable projects. - FY2018MaterialisedAnnual report
「The amount transferred to the provision for loss on orders included in cost of sales was ¥2.500 million for the current fiscal year.」
In relation to the risk of unprofitable projects, a ¥2.500 million provision for loss on orders was recognised in cost of sales for the fiscal year, with the expected loss reflected in the financial figures. - FY2018-Q3MaterialisedAnnual report
「Provision for loss on orders - ¥12.600 million」
A ¥12.600 million provision for loss on orders, which had not been recognised at the end of the previous fiscal year, was recognised at the end of the third quarter of the current fiscal year, indicating in the financial statements an expected loss associated with orders. Meanwhile, the company's performance explanation also referred to preventing unprofitable projects through thorough project management. - FY2018-Q2MitigatedAnnual report
「Meanwhile, efforts to improve project profitability through project management resulted in operating income of ¥263 million, up 52.9% year on year; ordinary income of ¥282 million, up 55.4%; and net income attributable to owners of the parent of ¥181 million, up 45.0%.」
Efforts to improve project profitability through project management resulted in improved profit metrics related to the risk of unprofitable projects that had depressed profit in the previous period. The business and other risks section states that there are no new risks or material changes. - FY2018-Q1MitigatedAnnual report
「By thoroughly managing project budgets and promoting PMO (Project Management Office) activities to prevent unprofitable projects before they occur, the company achieved substantial increases in profit, with operating income of ¥52 million, up 196.3% year on year; ordinary income of ¥64 million, up 152.2%; and net income attributable to owners of the parent of ¥36 million, up 184.1%.」
The company implemented project budget management and PMO initiatives to prevent unprofitable projects, and profit increased significantly from the previous quarterly period, when profit had continued to decline. The risk section states that there have been no new occurrences or material changes. - FY2017RestatedAnnual report
「In system development, estimates are prepared for each process, and the company works to manage quality through QMS and CMMI and monitor projects through the PMO. However, quality or schedule problems may arise during the development process due to unforeseeable factors, and defects or other problems may be discovered only after a system enters the operational phase. If such circumstances result in an unprofitable project, this could affect operating results.」
While describing management through QMS, CMMI and the PMO, it continues to identify the risk that quality or schedule problems and defects during the operational phase could make projects unprofitable. No new occurrence is described in this filing. - FY2017-Q3MaterialisedAnnual report
「For the nine months ended the third quarter, net sales increased to ¥7,273 million, up 9.8% year on year, due to strong performance in credit-related projects and contributions from subsidiaries. However, the impact of unprofitable projects resulted in operating income of ¥283 million, down 28.8% year on year; ordinary income of ¥300 million, down 27.7%; and net income attributable to owners of the parent of ¥212 million, down 25.6%.」
Unprofitable projects identified as a risk also occurred during the current cumulative quarterly period and were confirmed, together with figures, as a factor contributing to the decline in profit. - FY2017-Q2MaterialisedAnnual report
「For the six months ended the second quarter, net sales increased to ¥4,896 million, up 14.0% year on year, due to strong performance in credit-related projects and contributions from subsidiaries. However, higher rent and other costs following the relocation to the new head office, as well as the occurrence of unprofitable projects in some areas, resulted in operating income of ¥172 million, down 38.5% year on year; ordinary income of ¥181 million, down 38.2%; and net income attributable to owners of the parent of ¥124 million, down 42.2%.」
The occurrence of unprofitable projects was confirmed during the current cumulative quarterly period and was identified, together with figures, as a factor contributing to the decline in operating profit and other earnings. - FY2017-Q1MaterialisedAnnual report
「Due to increased rent for the new office building to which the company relocated and the occurrence of some unprofitable projects, operating profit declined to ¥17 million, ordinary profit to ¥25 million and profit attributable to owners of the parent to ¥12 million, down 81.3%, 75.1% and 85.3%, respectively, year on year.」
The unprofitable projects previously described as a risk actually occurred and were identified, together with figures, as a factor contributing to the decline in profit. - FY2016First statedAnnual report
「Quality or schedule problems may arise during the development process due to unforeseeable factors, and defects or other problems may be discovered only after a system enters the operational phase. If such circumstances result in an unprofitable project, this could affect operating results.」
While conducting quality control and monitoring through QMS, CMMI and the PMO, it indicates the possibility that quality problems, schedule delays and defects could make projects unprofitable.