A later timing of revenue recognition due to an increase in overseas projects and the larger scale and longer duration of contracted testing
First written in FY2024-Q1. 4 of 9 entries say "Worsened", first in FY2024-Q2. Latest entry: FY2026.
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- FY2026MitigatedAnnual report
「We completed carried-over contracted studies from the previous fiscal year as scheduled, focused on obtaining new orders, and implemented cost reductions through more efficient business operations.」
In response to delays in revenue recognition for large, long-term tests, we completed the contract tests carried over from the previous period as scheduled, and revenue from the drug discovery support services business increased 19.1% year on year. - FY2026-H1MitigatedAnnual report
「We strengthened delivery-date management to complete, as scheduled, the relatively large number of contract tests carried over from the previous period, while also reducing costs through more efficient business operations.」
In response to delays in revenue recognition caused by larger and longer contract tests, we strengthened delivery-date management and completed the contract tests carried over from the previous period as scheduled. Revenue from the drug discovery support services business increased 16.3% year on year. - FY2025WorsenedAnnual report
「Many of these newly won tests were scheduled for completion from the following fiscal year onward, limiting their contribution to revenue for the fiscal year and resulting in an 18.2% year-on-year decline in revenue from the drug discovery support services business.」
Although orders and outstanding orders for high-value-added tests increased, test completion and revenue recognition were delayed until the following fiscal year and beyond, and the revenue-recognition timing risk was reflected in full-year results. - FY2025-H1WorsenedAnnual report
「Many of these newly won tests were scheduled for completion from the second half onward, limiting their contribution to revenue for the six-month period, and resulting in a year-on-year decline in revenue.」
Although orders for high-value-added tests and other services increased, test completion and revenue recognition were delayed until the second half and beyond, resulting in a 17.9% year-on-year decline in revenue from the drug discovery support services business. The impact of delayed revenue recognition has continued and become clearer. - FY2024-Q3WorsenedAnnual report
「In addition to the impact on human health, we are actively accepting contract work for impact assessment tests on various organisms in ecosystems, in response to growing demand for the development of environmentally friendly agrochemicals and other products. As the proportion of overseas projects among contract projects increased and contract tests became larger and longer, many tests were scheduled for completion from the fourth quarter onward. Although revenue increased year on year, it was not sufficient to offset the decline in revenue associated with the transitional period of consolidating the nonclinical contract testing business at the New Drug Research Center.」
The proportion of overseas projects continued to rise, and contract tests became larger and longer. While the number of projects and outstanding orders increased, revenue recognition was delayed until the fourth quarter and beyond. The decline in revenue resulting from the consolidation process for the nonclinical contract testing business could not be offset, and the impact became more apparent than in the previous quarter. - FY2024-Q2WorsenedAnnual report
「The proportion of overseas projects among contracted projects increased, and the contracted studies also became larger in scale and longer in duration. As a result, although the order backlog at the end of the second quarter was higher year on year, many studies were scheduled for completion from the second half onward, and revenue decreased year on year.」
The proportion of overseas projects continued to rise, while contract tests became larger and longer. Although the number of outstanding orders increased, completion and revenue recognition were delayed until the second half and beyond, resulting in a 22.6% year-on-year decline in revenue from the drug discovery support services business. The impact of delayed revenue recognition has become clear. - FY2024-Q1First statedAnnual report
「As the number of contracted studies increased, the proportion of overseas projects rose, and the contracted studies also became larger in scale and longer in duration. As a result, more studies were scheduled for completion from the second half of the current fiscal year onward, and revenue increased only slightly year on year.」
The proportion of overseas projects increased, and contract tests became larger and longer, resulting in an increase in tests in progress and a limited revenue contribution in the quarter. The situation in which an increase in contract projects leads to delays in revenue recognition is identified as a new risk.