Risk of financial performance volatility due to fluctuations in acceptance timing and concentration in large-scale projects

「一部案件の工事進捗が当初の計画より遅れ、売上計上が第２四半期以降となったことに加え、前年同四半期に複数の大型案件が進行した反動もあり、売上高及びセグメント利益は前年同四半期を下回りました。」

「Start dates and construction schedules were delayed on several large projects, causing the timing of revenue recognition to shift to the fourth quarter or the following fiscal year. However, large media-related projects progressed, including architectural acoustics projects related to redevelopment and university facilities, and revenue and profit exceeded the same quarter of the previous year.」

「Start dates and construction schedules were delayed on several large projects, causing the timing of revenue recognition to shift to the second half of the fiscal year or the following fiscal year.」

「While the impact of delayed product arrivals remained, acceptance was also delayed on some projects, causing revenue to fall below the same quarter of the previous year.」

「However, revenue and segment profit fell below the same quarter of the previous year because, in addition to the reaction to the concentration of large projects in the same quarter of the previous year, some projects were scaled back and construction periods were delayed.」

「In the architectural acoustics and installation business, work on projects already ordered was temporarily suspended or start dates were postponed due to the impact of COVID-19, but progress was generally in line with plan.」

「In the architectural acoustics and installation business, work on projects already ordered was temporarily suspended or start dates were postponed due to the impact of COVID-19, but progress was generally close to expectations.」

「However, profit fell below the previous consolidated fiscal year because of weaker performance in some areas, including a decline in large projects compared with the previous consolidated fiscal year and projects whose acceptance was delayed into the following fiscal year due to construction delays.」

「Meanwhile, although the company undertook projects for broadcasting stations, halls and cinemas, the number of large projects ordered declined from the same quarter of the previous year. In terms of profit, the business recorded an operating loss for the cumulative third-quarter consolidated period because many large projects involving installation work are expected to be concentrated in the fourth quarter.」

「Revenue in the electrical acoustics and sales and installation business exceeded the same quarter of the previous year due to the full-year consolidation of the Sama Sound group and 株式会社テクノハウス. In terms of profit, the business recorded an operating loss for the cumulative second-quarter consolidated period because the sales mix shifted toward lower-margin projects and many large projects involving installation work are expected to be concentrated in the fourth quarter.」

「Revenue in the electrical acoustics and sales and installation business exceeded the same quarter of the previous year, owing to the full-year consolidation of the Sama Sound group and 株式会社テクノハウス, the acquisition of large projects in the broadcasting-station and hall markets, and growth in sales of distribution products that form the basis of revenue. In terms of profit, the business recorded a loss in the cumulative first-quarter consolidated period because many large projects involving installation work are expected to be concentrated in the fourth quarter, but performance has generally been in line with plan.」

「The audio equipment sales and installation business benefited from large-scale projects, led by the broadcasting station market, and revenue exceeded the year-earlier quarter. However, it struggled because the end of sales of specified radio microphones related to the amendment to the Radio Act had a significant impact on profit, while higher construction costs on certain large-scale installation projects reduced profit margins.」

「Although capital investment appetite was strong in the equipment and broadcasting-station markets, the equipment sales business struggled as many projects at some subsidiaries had their delivery dates postponed.」

「During the cumulative third quarter of the fiscal year, ヒビノアークス株式会社, which became a consolidated subsidiary in the third quarter of the fiscal year ending March 2017, contributed to results. However, revenue was at the same level as in the year-earlier quarter due to the fading of special demand accompanying the frequency migration of specified radio microphones, the concentration of large-scale projects in the fourth quarter, project delivery delays and other factors.」

「Revenue and profit in the audio equipment sales and installation business have become markedly concentrated in the fourth quarter as the number of consolidated subsidiaries engaged in installation work has increased.」

「The audio equipment sales and installation business posted lower revenue and profit due to the end of the special demand accompanying the frequency migration of specified radio microphones, as well as delays in the progress of certain large-scale installation projects.」

「For some equipment sales and system installation projects, revenue recognition tends to be concentrated around March, when the fiscal year ends for many customers. In addition, some LED display and system sales and audio and video system installation projects are large-scale projects with a high value per project.」