Worth reading
48Recurring
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Improvement
Direction inferred from the company’s description.Scale
—
Displayed only when the document provides numerical figures.Wording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Summary of Q&AThird quarter of the fiscal year ending May 20269 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Full-year earnings forecastOnly the upward revision is disclosed; figures by line item are Not disclosed
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progress ahead of expectationsKey points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Reasons the third quarter exceeded expectations: contributions from subscription contracts, short-term rentals, gains on the sale of completed-contract equipment, the Windows OS upgrade cycle, and higher selling prices, among other factors
- Temporary nature of strong performance and earnings power: the Company explained the expansion of recurring revenue, higher unit prices and productivity improvements in addition to temporary factors
- Outlook for the next fiscal year: the Company anticipates normalization in ITAD following the Windows OS upgrade cycle while targeting growth in the IT Subscription business
- Reasons for strong ITAD performance and profitability: the Company explained intake volumes, market prices, product quality and selling prices, and service revenue
- GIGA School devices: the impact is uncertain and has not been incorporated into the earnings forecast
- Market environment: the Company explained surging PC prices, component shortages, and its approach to pricing and passing on higher costs
- Medium-term management plan: external disclosure is being limited because of the competitive environment and the difficulty of making forecasts
- Investment policy: relocation of the Tokyo Technical Center and system upgrades are planned
- Human capital: a special bonus is planned
- Share price decline: the Company refrained from identifying a specific reason and explained the possibility of profit-taking and a perception that catalysts had run their course, among other factors
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
A certain degree of normalization following demand from the Windows OS upgrade cycle is assumed; numerical assumptions are Not disclosedNew initiatives
- Increase procurement of highly profitable products, including newer, higher-specification items
- Strengthen service revenue from data erasure, BPO for emissions management, kitting and operational support
- Relocate the Tokyo Technical Center
- Upgrade systems to improve operational efficiency
- Plan to provide a special bonus
- Consider cross-selling between the IT Subscription and ITAD businesses
Key KPIsA metric the company considers important as a management benchmark.
- Number of employees297 peopleYear on year against the same period last yearIncreased from 241 people
- Revenue per employee¥26.2 millionYear on year against the same period last yearIncreased from ¥14.0 million
- Operating profit per employee¥3.9 millionYear on year against the same period last yearIncreased from ¥1.3 million
Unit price and quantity metricsThese figures show sales broken down by price and volume.
The relationship between intake volume and number of units received and average unit prices and selling prices in the ITAD business is explained, but specific figures for the current period are Not disclosedSegment results
- IT Subscription BusinessNet Sales¥5,337 millionSegment profit¥630 millionComparison revenue¥1,598 millionComparison segment profit¥206 million
- ITAD BusinessNet Sales¥2,467 millionSegment profit¥1,031 millionComparison revenue¥1,507 millionComparison segment profit¥363 million
Medium-term management plan targets
The Company has set medium-term targets internally, but the figures disclosed externally are Not disclosedNumber of employees
Number of Employees297 people
Hiring planEmphasis on securing, retaining and enabling specialist talent to perform effectively
| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | Third quarter of the fiscal year ending May 2026 |
| Full-year earnings forecast | Only the upward revision is disclosed; figures by line item are Not disclosed |
| Self-assessment against the plan | Progress ahead of expectations |
| Segment results | Segment IT Subscription Business / Net Sales ¥5,337 million / Segment profit ¥630 million / Comparison revenue ¥1,598 million / Comparison segment profit ¥206 million / Year on year against the same period last year Not disclosed, Segment ITAD Business / Net Sales ¥2,467 million / Segment profit ¥1,031 million / Comparison revenue ¥1,507 million / Comparison segment profit ¥363 million / Year on year against the same period last year Not disclosed |
| Key KPIs | Indicator name Number of employees / Value 297 people / Year on year against the same period last year Increased from 241 people, Indicator name Revenue per employee / Value ¥26.2 million / Year on year against the same period last year Increased from ¥14.0 million, Indicator name Operating profit per employee / Value ¥3.9 million / Year on year against the same period last year Increased from ¥1.3 million |
| Unit price and quantity metrics | The relationship between intake volume and number of units received and average unit prices and selling prices in the ITAD business is explained, but specific figures for the current period are Not disclosed |
| Number of employees | Number of Employees 297 people / Change during the period Not disclosed / Hiring plan Emphasis on securing, retaining and enabling specialist talent to perform effectively |
| Assumptions Underlying the Business Outlook | A certain degree of normalization following demand from the Windows OS upgrade cycle is assumed; numerical assumptions are Not disclosed |
| Medium-term management plan targets | The Company has set medium-term targets internally, but the figures disclosed externally are Not disclosed |
| Key points of the Q&A | Reasons the third quarter exceeded expectations: contributions from subscription contracts, short-term rentals, gains on the sale of completed-contract equipment, the Windows OS upgrade cycle, and higher selling prices, among other factors, Temporary nature of strong performance and earnings power: the Company explained the expansion of recurring revenue, higher unit prices and productivity improvements in addition to temporary factors, Outlook for the next fiscal year: the Company anticipates normalization in ITAD following the Windows OS upgrade cycle while targeting growth in the IT Subscription business, Reasons for strong ITAD performance and profitability: the Company explained intake volumes, market prices, product quality and selling prices, and service revenue, GIGA School devices: the impact is uncertain and has not been incorporated into the earnings forecast, Market environment: the Company explained surging PC prices, component shortages, and its approach to pricing and passing on higher costs, Medium-term management plan: external disclosure is being limited because of the competitive environment and the difficulty of making forecasts, Investment policy: relocation of the Tokyo Technical Center and system upgrades are planned, Human capital: a special bonus is planned, Share price decline: the Company refrained from identifying a specific reason and explained the possibility of profit-taking and a perception that catalysts had run their course, among other factors |
| New initiatives | Increase procurement of highly profitable products, including newer, higher-specification items, Strengthen service revenue from data erasure, BPO for emissions management, kitting and operational support, Relocate the Tokyo Technical Center, Upgrade systems to improve operational efficiency, Plan to provide a special bonus, Consider cross-selling between the IT Subscription and ITAD businesses |
Items this document does not state (19)
Net SalesOperating profitOrdinary incomeNet incomeGross Profit MarginOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastBreakdown of Factors Affecting the ChangeNumber of stores and locationsRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / Share
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.In the IT Subscription business, growth in recurring revenue from long-term contracts, demand for short-term rentals associated with the House of Representatives election, and gains on the sale of equipment from the completion of large contracts in prior periods contributed to results. In the ITAD business, higher intake volumes driven by the Windows OS upgrade cycle, rising market prices for used PCs reflecting higher prices for new PCs, and higher average unit prices resulting from increased procurement of newer, higher-specification products contributed to results.
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