Decrease in sales due to delays in the start of anticipated projects
First written in FY2017-Q1. 20 of 21 entries say "Materialised", first in FY2017-Q1. Latest entry: FY2022-Q3.
No other company in this theme has enough history to compare yet.
- FY2022-Q3MaterialisedAnnual report
「Development related to the financial sector and Internet-related development in the logistics sector remained firm, while embedded development for automotive applications and information appliances was weak due to smaller development scales. On the profit side, productivity improved as a result of selectively allocating and concentrating resources. As a result, net sales were ¥7,520 million, down 0.4% year on year, and operating income was ¥199 million, up 13.2%.」
The scale of development in embedded automotive and information-appliance fields continued to contract, and SI business revenue declined 0.4% year on year. Operating profit increased 13.2% on strong performance in the financial and logistics sectors and improved productivity. - FY2022-Q2MaterialisedAnnual report
「Although development projects in embedded automotive and information-appliance fields contracted, profit improved as systems development in the financial sector and internet-related development in logistics continued to perform well. Revenue was ¥4,951 million, down 1.5% year on year, and operating profit was ¥95 million, up 89.3%.」
The decline in SI business revenue continued due to the contraction of development projects in automotive and information-appliance fields, with the reduction in project scale appearing as an actual impact on revenue. Meanwhile, operating profit improved on strong performance in the financial and logistics sectors. - FY2022-Q1MaterialisedAnnual report
「Internet-related development in logistics and systems development in the financial sector remained strong, but the contraction of development projects in embedded automotive and information-appliance fields and progress in the shift from a contract-based to a proposal-based business model resulted in revenue of ¥2,433 million, down 2.3% year on year, and operating profit of ¥50 million, up 519.2%.」
The contraction of projects in embedded automotive and information-appliance fields and the decline in SI business revenue associated with the shift from a contract-based to a proposal-based model also actually occurred in the first quarter. Meanwhile, profit improved to ¥50 million. - FY2021-Q3MaterialisedAnnual report
「Systems development in the financial sector remained solid, but automotive, mobile-device and information-appliance operations in embedded SI continued to be weak. In addition, investment restraint resulting from the spread of COVID-19, including revisions to customers' development project plans, resulted in revenue of ¥7,552 million, down 10.1% year on year, and operating profit of ¥175 million, down 30.5%.」
Customers' revisions to development project plans and investment restraint due to the spread of COVID-19 actually occurred, resulting in a 10.1% decline in SI business revenue and a 30.5% decline in operating profit. - FY2021-Q2MaterialisedAnnual report
「Systems development in the financial sector remained strong, but revenue was ¥5,025 million, down 11.0% year on year, and operating profit was ¥50 million, down 66.1%, due to reductions in automotive, mobile-device and systems development for manufacturers, as well as revisions to development project plans at customers following the COVID-19 pandemic.」
Customer-driven revisions to development project plans due to COVID-19 actually occurred, resulting in an 11.0% decline in SI business revenue and a 66.1% decline in operating profit. - FY2021-Q1MaterialisedAnnual report
「Although some systems development projects in the financial sector got underway, revenue declined due to a reduction in embedded information appliance development and systems development for manufacturers, as well as progress in the shift from a contract-based to a proposal-based business model. Revenue was ¥2,489 million, down 9.2% year on year, and operating profit was ¥8 million, down 78.0%.」
The reduction in conventional embedded and contract-based development for manufacturers, together with the decline in SI business revenue and profit associated with the shift from a contract-based to a proposal-based model, also actually occurred in the first quarter. - FY2020MaterialisedAnnual report
「While large-scale projects, mainly in the financial sector, were winding down and the scale of orders in conventional embedded contract-based development for smartphones and information appliances was shrinking, some areas, including systems development for credit companies, performed well. Overall, however, business remained lacking in momentum. As a result, revenue was ¥11,418 million, down 7.9% from the previous fiscal year, and operating profit was ¥234 million, down 45.3%.」
The winding down of large-scale financial-sector projects and the continued reduction in the scale of orders for conventional embedded contract-based development resulted in SI business revenue declining 7.9% and operating profit declining 45.3%. - FY2020-Q3MaterialisedAnnual report
「While large-scale projects, mainly in the financial sector, were winding down and the scale of orders in conventional embedded contract-based development for smartphones and information appliances was shrinking, the Company sought to expand into new customers and business areas, with some results beginning to emerge. Overall, however, business remained lacking in momentum. As a result, revenue was ¥8,398 million, down 8.0% year on year, and operating profit was ¥253 million, down 36.7%.」
The winding down of large-scale financial-sector projects and the continued reduction in the scale of orders for conventional embedded contract-based development resulted in SI business revenue declining 8.0% year on year and operating profit declining 36.7%. - FY2020-Q2MaterialisedAnnual report
「Systems development in the social infrastructure and distribution fields grew, but the scale of conventional contract-based development in embedded fields such as smartphones and information appliances decreased. As a result, revenue was ¥5,645 million, down 6.0% year on year, and operating profit was ¥149 million, down 29.0%.」
The reduction in the scale of conventional contract-based development also occurred in the second quarter, resulting in a 6.0% decline in SI business revenue and a 29.0% decline in operating profit. - FY2020-Q1MaterialisedAnnual report
「Contract-based development for information appliances and website construction remained strong, but revenue declined due to a reduction in embedded contract-based development for smartphones and automotive applications and progress in the shift from a contract-based to a proposal-based business model. Revenue was ¥2,742 million, down 1.7% year on year, and operating profit was ¥36 million, down 0.6%.」
The decline in SI business revenue associated with the shift from a contract-based to a proposal-based business model also occurred in the first quarter. - FY2019MaterialisedAnnual report
「Although contract-based development in the smartphone, automotive applications and social infrastructure fields grew and orders remained solid, revenue declined due to the reduction in the financial-sector workforce and the decline in revenue related to core business systems. Revenue was therefore ¥12,403 million, down 0.2% from the previous fiscal year.」
The reduction in the financial-sector workforce and the decline in revenue related to core business systems also occurred for the full year, affecting SI business revenue. - FY2019-Q3MaterialisedAnnual report
「Although contract-based development in the smartphone, automotive applications and social infrastructure fields grew, with orders remaining solid, the reduction in the financial-sector workforce and the decline in revenue related to core business systems resulted in revenue of ¥9,124 million, down 0.0% year on year.」
The reduction in the financial-sector workforce and the decline in revenue related to core business systems continued to occur, affecting SI business revenue. Meanwhile, contract-based development in the smartphone, automotive applications and social infrastructure fields grew. - FY2019-Q2MaterialisedAnnual report
「Contract-based embedded development for smartphones, automotive applications and equipment control grew, with orders remaining solid, but this was insufficient to offset the reduction in the financial-sector workforce and the decline in revenue related to core business systems. Revenue was therefore ¥6,003 million, down 2.4% year on year.」
The reduction in the financial-sector workforce and the decline in revenue related to core business systems could not be offset, resulting in SI business revenue declining 2.4% year on year. - FY2019-Q1MaterialisedAnnual report
「Revenue decreased because the previous year's same quarter included the acceptance of large-scale projects and because the proportion of projects spanning multiple quarters increased as the Company shifted to a solutions business. As a result, revenue for the first quarter of the current consolidated cumulative period was ¥4,313 million, down 7.7% year on year, and operating profit was ¥138 million, down 31.5%.」
As the proportion of projects spanning multiple quarters increased, revenue and operating profit declined during the quarter despite strong orders. This was described as an impact on the timing of revenue recognition associated with the shift to a solutions business, distinct from the previously cited delays in project starts. - FY2018MaterialisedAnnual report
「Although core business systems-related operations remained solid, the Company was unable to secure projects to offset lower workloads in the financial and social infrastructure sectors, resulting in lower revenue. As a result, revenue was ¥12,433 million, down 6.3% from the previous fiscal year, and operating profit was ¥379 million, down 39.6%.」
The inability to secure projects to offset lower workloads in the financial and social infrastructure sectors also occurred on an annual basis, resulting in a 6.3% decline in SI business revenue and a 39.6% decline in operating profit. - FY2018-Q3MaterialisedAnnual report
「Although contract-based development of core business systems produced a certain level of results, it was insufficient to offset the decline in workloads following the winding down of large-scale projects in the financial sector, resulting in lower revenue. As a result, revenue was ¥9,125 million, down 6.1% year on year, and operating profit was ¥268 million, down 40.7%.」
The winding down of large-scale projects in the financial sector and the shortage of workloads to offset it continued to occur, resulting in a 6.1% decline in SI business revenue and a 40.7% decline in operating profit. - FY2018-Q2MaterialisedAnnual report
「New orders for contract-based development generated through sales activities provided support, but were insufficient to offset the decline in workloads following the winding down of large-scale projects in the financial sector, resulting in lower revenue. As a result, revenue was ¥6,148 million, down 5.5% year on year, and operating profit was ¥98 million, down 62.2%.」
The winding down of large-scale financial-sector projects and the lack of operational expansion to offset it actually occurred, resulting in a 5.5% decline in SI business revenue and a 62.2% decline in operating profit. - FY2018-Q1MaterialisedAnnual report
「In the development of core business systems, including those for financial institutions, revenue from existing contract-based development decreased because the expansion of operations to offset the winding down of large-scale projects was delayed. As a result, revenue was ¥2,939 million, down 5.6% year on year, and operating profit was ¥13 million, down 75.2%.」
Although the wording differs from the previous references to project-start delays, delays in expanding operations to offset the winding down of large-scale projects actually occurred and were cited as factors behind the SI business's 5.6% decline in revenue and 75.2% decline in operating profit. - FY2017DroppedAnnual report
「Revenue from existing businesses in communications infrastructure-related operations and core business systems development decreased.」
The annual performance explanation did not reiterate the delays in the start of anticipated projects mentioned in the quarterly report, instead describing the decline in SI business revenue as a decrease in existing businesses. - FY2017-Q2MaterialisedAnnual report
「In addition to a decline in communications infrastructure, revenue from existing businesses decreased due to delays in the start of anticipated projects related to core business operations. As a result, revenue was ¥6,509 million, down 7.7% year on year, and operating profit was ¥261 million, down 1.2%.」
Delays in the start of anticipated projects related to core business operations occurred again during the quarter, resulting in SI business revenue declining 7.7% year on year. Although total company revenue increased 0.2% year on year, the impact of delayed project starts on existing-business revenue was confirmed. - FY2017-Q1MaterialisedAnnual report
「Although the Company achieved a certain level of progress in terms of profit, revenue fell below the same quarter of the previous year due to delays in the start of anticipated projects. As a result, revenue for the first quarter of the current consolidated cumulative period was ¥4,115 million, down 3.2% year on year.」
Delays in the start of anticipated projects actually occurred, resulting in first-quarter revenue declining 3.2% year on year. Unlike the existing risk of unprofitable projects arising, this indicates the impact on revenue recognition from delays in project start dates.