Concentration of sales in the fourth quarter
First written in FY2016. 7 of 15 entries say "Materialised", first in FY2022-Q2. Latest entry: FY2026.
Digital Arts moved to the "Worse" side of this theme in 2019, 5 years before the typical company in this theme (2024).
The whole theme swung hardest in 2024: 4 of 13 companies on the "Worse" side.
0 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「However, the accumulation of order backlog for cloud service-related products indicates that the revenue model is steadily shifting from “one-time license revenue” to “recurring service revenue,” which is expected to lead to stable and sustainable growth from the next fiscal year onward.」
As contract value for cloud service-related products increased, advances received rose to ¥7,800 million and remaining performance obligations rose to ¥12,006 million. The fact that the increase in contract value was not immediately reflected in accounting revenue became apparent over the full year. - FY2026-H1MaterialisedAnnual report
「Meanwhile, because cloud service-related products were the primary driver of the increase in contract value, revenue was not immediately reflected in revenue under the accounting standards’ revenue recognition requirements, and revenue increased only slightly.」
Although contract value for cloud service-related products increased, the increase was not immediately reflected in revenue due to recognition over the service provision period, and this actually emerged during the current interim period. - FY2025MaterialisedAnnual report
「During the current consolidated fiscal year, revenue recognition did not progress because orders for cloud service-related products increased more than planned.」
During the full fiscal year, the increase in orders for cloud service-related products actually resulted in delays in recognizing revenue in line with the service provision period. - FY2025-H1MaterialisedAnnual report
「During the current interim consolidated accounting period, revenue recognition did not progress because orders for cloud service-related products increased more than planned.」
During the current interim consolidated accounting period, the increase in orders for cloud service-related products actually resulted in revenue recognition failing to progress in line with the service provision period. - FY2024RestatedAnnual report
「The Group’s quarterly revenue tends to be higher in the fourth quarter than in the other quarters. This is because private companies and public-sector organizations often place orders for IT products in March, the fiscal year-end.」
The concentration of revenue in the fourth quarter due to fiscal year-end orders, and the risk of performance fluctuations caused by order delays and other factors, continue to be identified. - FY2023RestatedAnnual report
「The Group’s quarterly revenue tends to be higher in the fourth quarter than in the other quarters. This is because private companies and public-sector organizations often place orders for IT products in March, the fiscal year-end.」
The concentration of revenue in the fourth quarter due to fiscal year-end orders, and the risk of performance fluctuations caused by order delays and other factors, continue to be identified. - FY2022MaterialisedAnnual report
「This was mainly due to a ¥2,313 million increase in advances received as contract value increased.」
As contract value for cloud services and other products increased, advances received corresponding to revenue deferred to the following fiscal year and beyond increased by ¥2,313 million from the end of the previous fiscal year, and the gap between contract value and the timing of revenue recognition became apparent over the full year. - FY2022-Q3MaterialisedAnnual report
「This was due to a ¥2,273 million increase in advances received as contract value increased.」
As orders for cloud service-related products increased, advances received for contracts whose revenue would be recognized in the following fiscal year or later actually increased by ¥2,273 million. - FY2022-Q2MaterialisedAnnual report
「As a result, as in the previous fiscal year, cloud service-related products accounted for a high proportion of total contract value in the current fiscal year, and revenue deferred to the following fiscal year and beyond increased compared with the end of the year-earlier period.」
As the proportion of cloud service-related products increased, the gap between contract value and the timing of accounting revenue recognition actually widened, and revenue deferred to the following fiscal year and beyond increased. - FY2021RestatedAnnual report
「The Group’s quarterly revenue tends to be higher in the fourth quarter than in the other quarters. This is because private companies and public-sector organizations often place orders for IT products in March, the fiscal year-end.」
The concentration of revenue in the fourth quarter due to fiscal year-end orders, and the risk of quarterly performance fluctuations caused by order delays and other factors, continue. - FY2020WorsenedAnnual report
「The Group’s quarterly revenue tends to be higher in the fourth quarter than in the other quarters. This is because private companies and public-sector organizations often place orders for IT products in March, the fiscal year-end. In addition, quarterly financial results may fluctuate if the proportion of products for which most of the contract amount is deferred for accounting purposes increases relative to products for which most of the contract amount is recognized as accounting revenue at the time of contracting, or if temporary demand arises from legislative amendments or government-led measures.」
In addition to the concentration in the fourth quarter due to fiscal year-end orders, changes in the product mix toward products such as cloud services for which revenue is deferred, and temporary demand, were explicitly identified as factors that may cause quarterly figures to fluctuate. - FY2019-Q3WorsenedAnnual report
「Regarding the high-end “i-FILTER” Ver.10 and “m-FILTER” Ver.5 models, for which full-scale sales began in the current consolidated fiscal year, active sales promotion increased awareness of the products’ capabilities and advanced the creation of sales opportunities. However, as opportunities became relatively larger, the concentration of order acquisition toward the fiscal year-end became more pronounced.」
Although the creation of sales opportunities for high-end products advanced, the larger size of opportunities strengthened the concentration of order acquisition toward the fiscal year-end. - FY2018RestatedAnnual report
「The Group’s quarterly revenue tends to be higher in the fourth quarter than in the other quarters. This is because private companies and public-sector organizations often place orders for IT products in March, the fiscal year-end.」
The concentration of revenue in the fourth quarter due to fiscal year-end orders, and the impact of order delays and other factors, continue to be identified. - FY2017RestatedAnnual report
「The Group’s quarterly revenue tends to be higher in the fourth quarter than in the other quarters. This is because private companies and public-sector organizations often place orders for IT products in March, the fiscal year-end.」
The concentration of revenue in the fourth quarter due to fiscal year-end orders, and the impact of order delays and other factors, continue to be identified. - FY2016First statedAnnual report
「The Group’s quarterly revenue tends to be higher in the fourth quarter than in the other quarters.」
Fourth-quarter revenue has a high proportion due to fiscal year-end orders from private companies and public-sector organizations, indicating the possibility of an impact from order delays and other factors.