Entry into the Cloud-Based Ordering and Electronic Medical Records Business

「As we were unable to secure a large order related to electronic medical records, performance is expected to fall below the forecast.」

「Although we secured new electronic medical records sales during the quarter, no large RIS-related projects were received that had been secured in the same period of the previous year, and maintenance revenue from various systems also declined. As a result, both revenue and profit were substantially below the same period of the previous year.」

「To continue operating the electronic medical records business with a focus on profitability, we decided to transfer part of the i-HIS business assets, including development and installation work, to 株式会社ヴェリタス. Going forward, we plan to focus on sales activities and change the business flow so that, when a project is concluded, we receive part of the order amount from ヴェリタス as a customer referral fee.」

「In the Medical Systems business, PACS (medical image management system) and i-HIS (cloud-based electronic medical records) generated a certain level of sales, although they fell short of the budget for the consolidated fiscal year.」

「PACS (medical image management system) and i-HIS (cloud-based electronic medical records) in the Medical Systems business generated a certain level of sales, although they fell short of the budget for the consolidated fiscal year.」

「PACS (medical image management system) and i-HIS (cloud-based electronic medical records) in the Medical Systems business fell short of the budget for the cumulative third-quarter consolidated period, but generated a certain level of sales. As of 30 June 2022, the Healthcare Solutions business's order backlog stood at ¥457.413 million and is expected to contribute to future sales.」

「PACS (medical image management system) and i-HIS (cloud-based electronic medical records) in the Medical Systems business fell short of the budget for the cumulative second-quarter period, but generated a certain level of sales. As of 31 March 2022, the Healthcare Solutions business's order backlog stood at ¥343.131 million and is expected to contribute to future sales.」

「As of 31 December 2021, the Healthcare Solutions business's order backlog, consisting mainly of i-HIS (cloud-based electronic medical records), stood at ¥384.921 million and is expected to make a significant contribution to future sales.」

「Several large projects with low profit margins arose. Although orders for i-HIS (cloud-based electronic medical records) were trending higher year on year, the segment posted a loss mainly because costs increased as completion of installation took time after orders were received. As of 30 September 2021, the order backlog stood at ¥231.824 million and is expected to contribute to revenue and profit in the next fiscal year.」

「Operating conditions in this segment improved as the impact of COVID-19 on sales activities targeting medical institutions, the main customer base, eased. Revenue from i-HIS (cloud-based electronic medical records), ordered in the previous fiscal year and the first and second quarters, has also begun to be recognized following completion of customer acceptance. Although the segment remained loss-making, the current order backlog stood at ¥308 million and is expected to contribute to future revenue and profit.」

「The current order backlog is ¥219 million and is expected to contribute to future sales. Orders for COVID-19-related products, including a COVID-19 testing operation system and PCR detection reagents, remain strong and are expected to contribute to society as the company's performance recovers this fiscal year.」

「Although sales have not yet been recorded for the cloud-based electronic medical records business because delivery, and therefore the timing of revenue recognition, takes several months after an order is received, the business has a backlog of orders. Several solar power generation projects are also in progress, so the full-year earnings forecast remains unchanged. The current order backlog is ¥355 million, which is expected to contribute to future sales.」

「The factors behind the segment's decline in sales and loss included the inability to conduct sales activities with medical institutions, its main customers, due to the spread of COVID-19, as well as a succession of events including postponements of PACS replacement projects and freezes on negotiations for i-HIS, a cloud-based electronic medical record system. Net sales fell 48.8% year on year, while fixed costs increased due to the addition of personnel dedicated to i-HIS, resulting in performance not previously seen.」

「i・HIS, which enables hospitals to streamline their operations, shorten service delivery times and implement the system at low cost, has seen increases in both inquiries and orders.」

「Although higher personnel expenses and other costs resulting from upfront investment in the cloud-based electronic medical records system i・HIS were a factor, inquiries and orders have continued to increase.」

「Inquiries and orders for the cloud-based electronic medical records system i・HIS have increased, but sales were not recorded.」

「The newly launched cloud-based electronic medical records system, i・HIS, has seen increases in both inquiries and orders, and sales have also been recorded.」

「Regarding the newly launched cloud-based electronic medical records business, we have already received orders following more than 10 inquiries.」

「In the third quarter, we launched solar power generation and cloud-based ordering electronic medical records as new businesses. With regard to the cloud-based ordering electronic medical records business, compared with server-based systems, it delivers substantial cost reductions, enables hospitals to streamline their operations and shorten the time required to provide services to patients, and is expected to generate synergies by integrating with software such as our flagship PACS (medical image storage, distribution and display system), thereby improving convenience for hospitals. We have therefore entered this business.」