Profitability Decline Due to Upfront Investment in New Business Development
First written in FY2016-Q3. 6 of 13 entries say "Restated". Latest entry: FY2024-Q1.
ImageONE moved to the "Worse" side of this theme in 2020, 1 year before the typical company in this theme (2021).
The whole theme swung hardest in 2017: 6 of 20 companies on the "Worse" side.
18 other companies' latest entry also says "Restated".
- FY2024-Q1RestatedAnnual report
「During the first quarter of the current fiscal year, there were no new occurrences of the major risks that management recognises could materially affect the financial position, operating results or cash flows of the Group among the matters relating to business conditions, financial conditions and other matters described in the quarterly report, and no material changes to the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」
The company explained that there have been no material changes to the risks associated with its existing businesses. - FY2021MaterialisedAnnual report
「Although orders for "i-HIS" (a cloud-based electronic medical record system) were trending higher year on year, segment profit was negative, mainly because costs increased as it took time to complete installation after orders were received.」
The risks of upfront investment in the new business and delayed monetisation have emerged in the current fiscal year's loss through the longer time required to complete i-HIS installations and the resulting increase in costs. - FY2021-Q3RestatedAnnual report
「During the first three quarters of the current fiscal year, there were no new occurrences of the major risks that management recognises could materially affect the filing company's financial position, operating results or cash flows among the matters relating to business conditions, financial conditions and other matters described in the quarterly report, and no material changes to the "Business and Other Risks" described in the annual securities report for the previous fiscal year.」
No material changes are reported in the existing risks relating to upfront investment in the new business and monetisation. - FY2021-Q2RestatedAnnual report
「During the cumulative second quarter under review, there were no new major risks that management recognizes could have a material impact on the financial condition, operating results or cash flows of the filing company, and no material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
No material changes are reported in the existing risks relating to upfront investment in the new business and monetisation. - FY2020WorsenedAnnual report
「In addition, higher fixed costs resulting from the increase in personnel dedicated to "i-HIS" led to performance unlike anything seen previously.」
The fixed-cost burden from the increase in personnel dedicated to i-HIS emerged in the results as a factor behind the decline in revenue and loss in the Healthcare Solutions business. - FY2020-Q3WorsenedAnnual report
「The decline in revenue and loss in this segment were attributable to the postponement and other factors affecting multiple renewal projects for PACS, the main product, due to the impact of COVID-19, as well as higher fixed costs, including personnel expenses, resulting from upfront investment in the cloud-based electronic medical record system "i・His".」
Higher fixed costs, including personnel expenses, resulting from upfront investment in i・His, together with the postponement of PACS renewal projects, have emerged in the results as factors behind the decline in revenue and loss in the Healthcare Solutions business. - FY2020-Q2MaterialisedAnnual report
「The segment loss was attributable to higher personnel expenses and other costs resulting from upfront investment in the cloud-based electronic medical record system "i・HIS".」
Upfront investment in the new business has emerged in the current quarter as a segment loss through higher personnel expenses related to i・HIS. - FY2020-Q1RestatedAnnual report
「During the first quarter of the current fiscal year, no new business or other risks arose. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
No material changes are reported in the risks relating to upfront investments in the new business and the time required to monetise it. - FY2019-Q1RestatedAnnual report
「During the first quarter of the current fiscal year, no new business or other risks arose. There were also no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
No material changes are reported in the risks relating to upfront investments in the new business and the time required to monetise it. - FY2018-Q1RestatedAnnual report
「During the cumulative consolidated period for the first quarter, no new business or other risks arose. There were also no significant changes to the business and other risks described in the securities report for the previous fiscal year.」
No material changes are reported in the risks relating to upfront investments in the new business and the time required to monetise it. - FY2017Reiteration of upfront investment risksAnnual report
「Accordingly, additional costs related to the hiring of personnel, advertising and promotion expenses, system investments and other items as upfront investments may arise. In addition, if business revenue differs from initial expectations or if it takes a certain amount of time for the business to generate stable revenue, this could affect the performance of the Group.」
Additional costs from upfront investments in a new business and the time required to monetise it are explicitly identified as business and other risks. - FY2016DroppedAnnual reportThe previous statement that upfront investments in new business development had reduced margins for the business as a whole is not explicitly included in the performance discussion for the current fiscal year.
- FY2016-Q3First statedAnnual report
「We worked to improve margins by focusing on more efficient system implementation, among other measures, but margins for the business as a whole declined because of the recognition of upfront investments in new business development.」
The company states that upfront investments in new business development were recognised, causing margins for the business as a whole to decline.