Profit declines sharply despite higher revenue

「During the fiscal year, the Group pursued its business with targets of consolidated revenue of ¥30,000 million and consolidated ordinary profit of ¥2,100 million. Revenue increased 5.0% year on year to ¥29,510 million, mainly because sales of business solutions products performed well on growth in security systems for data centers and offices. However, the revenue target was not achieved because sales of automotive equipment and modules in the Electronics products category declined from the strong level of the previous fiscal year. Ordinary profit was ¥2,408 million, setting a record high since listing.」

「Operating profit reached a record high for an interim consolidated accounting period, increasing 1.9% year on year to ¥954 million. Ordinary profit increased 21.4% to ¥985 million as foreign-exchange losses on foreign-currency transactions declined. Interim net income attributable to owners of the parent increased 20.6% to ¥717 million, mainly due to the recognition of gains on the sale of investment securities.」

「Against this backdrop, for the interim consolidated accounting period, revenue increased 4.6% year on year to ¥13,314 million, driven by an increase in subscriptions for cloud services and support products, the acquisition of large maintenance contracts, and strong sales of mechatronics products. Operating profit increased 31.2% to ¥936 million. Ordinary profit fell 23.2% to ¥811 million, mainly due to the recognition of foreign-exchange losses on foreign-currency transactions. Interim net income attributable to owners of the parent fell 17.2% year on year to ¥594 million.」

「Against this backdrop, for the cumulative third quarter of the fiscal year, revenue increased 12.0% year on year to ¥18,960 million, mainly because the company made progress in converting its electronics product order backlog into sales and sales of electronic components for industrial equipment remained strong. Operating profit increased 5.4% to ¥980 million. Ordinary profit increased 8.0% to ¥1,267 million, mainly due to the recognition of foreign-exchange gains on foreign-currency transactions. Net income attributable to owners of the parent increased 24.1% year on year to ¥1,021 million, due to gains on the sale of investment securities.」

「Against this backdrop, for the cumulative second quarter of the fiscal year, revenue increased 14.5% year on year to ¥12,729 million, mainly because the company made progress in converting its electronics product order backlog into sales and sales of electronic components for industrial equipment remained strong. Operating profit increased 22.2% to ¥713 million and ordinary profit increased 18.2% to ¥1,057 million for the reasons described above. Net income attributable to owners of the parent increased 9.2% year on year to ¥717 million.」

「Against this backdrop, for the cumulative first quarter of the fiscal year, revenue increased 22.2% year on year to ¥6,080 million, mainly because the company made progress in converting its electronics product order backlog into sales and sales of electronic components for industrial equipment remained strong. Operating profit increased 52.3% to ¥314 million and ordinary profit increased 33.1% to ¥574 million for the reasons described above. Net income attributable to owners of the parent increased 24.0% year on year to ¥393 million.」

「The company set a record for profit since listing. Operating profit increased 34.4% year on year to ¥1,376 million, ordinary profit increased 27.3% to ¥1,588 million, and net income attributable to owners of the parent increased 37.2% to ¥1,205 million.」

「Against this backdrop, for the cumulative third quarter of the fiscal year, revenue increased 14.5% year on year to ¥16,934 million, driven by strong performance in electronics products, including electronic components for semiconductor manufacturing equipment and home printers, and global products, including the fire-protection systems business in Thailand. Operating profit increased 49.5% to ¥930 million, while ordinary profit increased 57.3% to ¥1,173 million, mainly due to the recognition of foreign-exchange gains on foreign-currency transactions. Net income attributable to owners of the parent increased 56.0% year on year to ¥823 million.」

「Revenue increased 16.0% year on year to ¥11,118 million, driven by strong performance in electronics products, including electronic components for 5G base stations and semiconductor manufacturing equipment, and global products, including the fire-protection systems business in Thailand. Operating profit increased 35.4% to ¥584 million, while ordinary profit increased 82.5% to ¥894 million, mainly due to the recognition of foreign-exchange gains on foreign-currency transactions. Net income attributable to owners of the parent increased 96.8% year on year to ¥657 million.」

「Against this backdrop, for the cumulative first quarter of the fiscal year, revenue increased 13.0% year on year to ¥4,974 million, driven by strong sales of electronic components for 5G base stations and semiconductor manufacturing equipment, as well as access-control systems for data centers. Operating profit increased 215.0% to ¥206 million due to the factors described above and an improved gross profit margin. Ordinary profit increased 360.9% to ¥431 million, mainly due to the recognition of foreign-exchange valuation gains on foreign-currency receivables. Net income attributable to owners of the parent increased 535.9% year on year to ¥317 million.」

「Against this backdrop, for the fiscal year, revenue increased 0.9% year on year to ¥20,784 million, driven by strong sales of electronic components for 5G base stations, electronic components for home printers amid increased telework, and mechanical components for residential equipment in the United States. Operating profit increased 15.6% to ¥1,024 million due to the factors described above and an improved gross profit margin. Ordinary profit increased 34.6% to ¥1,247 million, mainly due to the recognition of foreign-exchange valuation gains on foreign-currency receivables. Net income attributable to owners of the parent increased 60.2% year on year to ¥878 million.」

「Revenue increased 2.4% year on year to ¥14,783 million, driven by strong sales of electronic components for 5G base stations, electronic components for home printers amid increased telework, and mechanical components for residential equipment in the United States. Operating profit increased 55.1% to ¥622 million and ordinary profit increased 117.4% to ¥746 million. Net income attributable to owners of the parent increased 242.0% year on year to ¥527 million.」

「Revenue increased 3.3% year on year to ¥9,583 million, driven by strong sales from large CCTV and facial-recognition system projects for the retail market and mechanical components for residential equipment in the United States. Operating profit increased 97.2% from the previous year to ¥431 million, and ordinary profit increased 176.5% year on year to ¥490 million. Net income attributable to owners of the parent increased 447.8% year on year to ¥334 million.」

「Revenue increased 4.6% year on year to ¥4,402 million. Although sales of access-control systems declined as office relocations by domestic and foreign-affiliated companies decreased, large projects for CCTV and facial-recognition systems in the retail market and sales of mechanical components for residential equipment in the United States remained strong. Operating profit increased by ¥62 million from the previous year to ¥65 million, while ordinary profit increased 288.8% year on year to ¥93 million. Net income attributable to owners of the parent increased by ¥70 million to ¥49 million.」

「Against this backdrop, for the cumulative third quarter of the fiscal year, revenue remained at ¥14,435 million, down 6.4% year on year. Although sales of remote-access products, supported by increased demand for telework, and semiconductor components for communications terminals were strong, the company was affected by the downturn in its target markets, including domestic and overseas office-related markets, manufacturing and construction. Operating profit fell 37.0% to ¥401 million and ordinary profit fell 51.5% to ¥343 million for the reasons described above. Net income attributable to owners of the parent fell 67.4% year on year to ¥154 million.」

「Against this backdrop, for the cumulative second quarter of the fiscal year, revenue was affected by the spread of COVID-19, the downturn in markets targeted by the company, including domestic and overseas retail, manufacturing and construction, and disruptions to sales activities due to movement restrictions. Revenue therefore remained at ¥9,273 million, down 8.8% year on year. Operating profit fell 42.6% to ¥218 million and ordinary profit fell 59.7% to ¥177 million for the reasons described above. Net income attributable to owners of the parent fell 79.6% year on year to ¥60 million.」

「Against this backdrop, for the cumulative first quarter of the fiscal year, revenue was affected by the spread of COVID-19, the downturn in markets targeted by the company, including domestic and overseas retail, manufacturing and construction, and disruptions to sales activities due to procurement difficulties for certain products and movement restrictions. Revenue therefore remained at ¥4,208 million, down 12.0% year on year. Operating profit fell 96.6% to ¥2 million and ordinary profit fell 79.7% to ¥24 million for the reasons described above. Net income attributable to owners of the parent declined by ¥135 million from the previous year, resulting in a loss of ¥20 million.」

「For the fiscal year, revenue remained strong, driven mainly by sales of enterprise access-control systems in the Systems segment and the Electronics business in the Devices segment. However, the spread of coronavirus infections from January 2020 disrupted the procurement of certain products and sales activities due to movement restrictions. In addition, the Global business slowed in the fourth quarter, resulting in revenue of ¥20,616 million, up 3.6% year on year. Operating profit fell 20.4% to ¥788 million and ordinary profit fell 18.5% to ¥885 million for the reasons described above. Net income attributable to owners of the parent fell 61.2% to ¥190 million, mainly due to the recognition of impairment losses on goodwill and other assets.」

「Against this backdrop, for the cumulative third quarter of the fiscal year, revenue increased 9.4% year on year to ¥15,425 million. Operating profit increased 20.0% to ¥636 million, and ordinary profit increased 16.1% to ¥707 million, reflecting strong sales in the Devices segment, including the Electronics and Industrial Equipment businesses. Net income attributable to owners of the parent increased 30.3% to ¥473 million, mainly due to the recognition of gains on the sale of investment securities.」

「Against this backdrop, for the cumulative second quarter of the fiscal year, revenue increased 11.6% year on year to ¥10,173 million. Operating profit increased 32.6% to ¥381 million, reflecting strong sales in the Devices segment, including the Electronics and Industrial Equipment businesses. Ordinary profit increased 25.6% to ¥439 million. Net income attributable to owners of the parent increased 57.5% to ¥298 million, mainly due to the recognition of gains on the sale of investment securities.」

「Against this backdrop, in the cumulative first quarter of the current consolidated fiscal year, revenue increased 20.1% year on year to ¥478.2 million. Operating profit increased by ¥13.1 million from the same period of the previous year to ¥8.1 million, due in part to strong sales in the Systems segment, including office solutions and advanced fire protection systems.」

「Against this backdrop, in the current consolidated fiscal year, revenue increased 1.7% year on year to ¥1,989.4 million. Operating profit increased 49.1% year on year to ¥98.9 million, due in part to strong domestic sales of the Systems segment, which has a relatively high profit margin, and efforts to reduce selling, general and administrative expenses. Ordinary profit increased 53.8% year on year to ¥108.6 million, due in part to the recognition of a foreign exchange gain of ¥5.4 million. Although the company recorded an impairment loss on fixed assets, including goodwill, related to Guardfire, net income attributable to owners of the parent increased 275.3% year on year to ¥49.1 million.」

「Against this backdrop, in the cumulative third quarter of the current consolidated fiscal year, revenue decreased 3.5% year on year to ¥1,409.9 million. Despite lower revenue, operating profit increased 43.1% year on year to ¥53.0 million, due in part to strong domestic sales of the Systems segment, which has a relatively high profit margin, and efforts to reduce selling, general and administrative expenses. Ordinary profit increased 44.0% year on year to ¥60.9 million, due in part to the recognition of a foreign exchange gain of ¥4.3 million. Net income attributable to owners of the parent increased 58.7% year on year to ¥36.3 million.」

「Against this backdrop, in the cumulative second quarter of the current consolidated fiscal year, revenue decreased 3.2% year on year to ¥911.4 million, as new orders were received for advanced fire protection systems at a large power plant but were not recognized as revenue during the period. Despite lower revenue, operating profit increased 36.0% year on year to ¥28.7 million, due in part to strong domestic sales of the Systems segment, which has a relatively high profit margin, and efforts to reduce selling, general and administrative expenses.」

「Against this backdrop, in the cumulative first quarter of the current consolidated fiscal year, revenue decreased 7.9% year on year to ¥398.1 million, as the Systems segment declined from the same period of the previous year, although the Devices segment remained at approximately the same level. Despite efforts to improve the gross profit margin and reduce costs, the impact of lower revenue could not be offset, and operating profit decreased by ¥3.3 million from the same period of the previous year, resulting in an operating loss of ¥5.0 million. Despite recording a foreign exchange gain of ¥2.9 million, ordinary profit decreased by ¥0.9 million to an ordinary loss of ¥0.8 million. Net income attributable to owners of the parent increased by ¥0.2 million from the same period of the previous year, resulting in a net loss of ¥3.3 million.」

「Revenue increased 2.8% year on year to ¥1,957.0 million. Operating profit increased 32.6% to ¥66.3 million, due in part to a ¥18.3 million decrease in selling, general and administrative expenses. Ordinary profit increased 0.9% to ¥70.6 million, as the ¥16.3 million increase in operating profit was offset in part by a ¥10.1 million decrease in foreign exchange gains. Net income attributable to owners of the parent decreased 53.2% year on year to ¥13.0 million, due in part to the recognition of an impairment loss of ¥25.3 million.」

「Against this backdrop, in the cumulative third quarter of the current consolidated fiscal year, revenue increased 8.4% year on year to ¥1,460.7 million, as the Systems segment expanded while the Devices segment remained at approximately the same level as the previous year. Operating profit increased 67.6% year on year to ¥37.0 million, due in part to a ¥15.3 million decrease in selling, general and administrative expenses. Ordinary profit increased 9.5% year on year to ¥42.3 million. Net income attributable to owners of the parent increased 149.0% year on year to ¥22.9 million.」

「Against this backdrop, in the cumulative second quarter of the current consolidated fiscal year, revenue increased 7.2% year on year to ¥941.5 million, as steady performance in the Systems segment offset difficulties in the Devices segment. Operating profit increased 66.7% year on year to ¥21.1 million, due in part to a ¥9.2 million decrease in selling, general and administrative expenses. Ordinary profit increased 29.0% year on year to ¥25.2 million. Net income attributable to owners of the parent increased 60.2% year on year to ¥12.3 million.」

「Against this backdrop, in the cumulative first quarter of the current consolidated fiscal year, revenue increased 7.5% year on year to ¥432.0 million, as steady performance in the Systems segment offset difficulties in the Devices segment. Operating profit increased by ¥10.0 million from the same period of the previous year, resulting in an operating loss of ¥1.6 million, due in part to the increase in gross profit from higher revenue and lower amortization of goodwill. Ordinary profit increased by ¥7.6 million to ¥0.1 million. Net income attributable to owners of the parent increased by ¥9.1 million to a net loss of ¥3.6 million.」

「Operating profit increased 43.2% year on year to ¥22.1 million, due in part to efforts to improve the gross profit margin and reduce costs. Ordinary profit increased 181.9% year on year to ¥38.6 million, due in part to the elimination of the foreign exchange loss recorded in the same period of the previous year and a shift to a foreign exchange gain of ¥11.2 million.」

「Although the company worked to improve its gross profit margin and reduce costs, these efforts were insufficient to offset the impact of lower revenue, and operating profit decreased 47.6% year on year to ¥12.6 million. Ordinary profit increased 10.8% year on year to ¥19.6 million, due in part to the elimination of the foreign exchange loss recorded in the same period of the previous year and a shift to a foreign exchange gain of ¥3.1 million. Net income attributable to owners of the parent increased by ¥9.2 million from the same period of the previous year to ¥7.7 million.」

「Against this backdrop, in the cumulative first quarter of the current consolidated fiscal year, operating results were supported by steady performance in customer service products, but other product categories struggled. Revenue decreased 21.8% year on year to ¥402.0 million.」

「Revenue increased 6.3% year on year to ¥1,998.6 million. In terms of profit and loss, the gross profit margin declined due to higher product procurement costs resulting from the weaker yen and lower selling prices amid intensifying competition. As a result, operating profit decreased 36.5% year on year to ¥43.6 million.」