Komori
Earnings3040SOLITON SYSTEMS K.K.Information and Communications, Services and Others

Financial Results Summary for the Second Quarter (Interim Period) of the Fiscal Year Ending December 2026 [Japanese GAAP] (Consolidated)

In the 2026 interim period, net sales rose 15.1% year on year and operating profit increased 124.0%, with profit growth substantially outpacing the increase in net sales. The full-year earnings forecast and year-end dividend forecast were revised. The annual dividend forecast was raised from the previous fiscal year's actual dividend of ¥54 to ¥72. Sound-FinTech was excluded from the scope of consolidation, and development costs for remote operation were reclassified to the Video Communications business.

Worth reading
66In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Improvement
Direction inferred from the company’s description.
Scale
124
% (year-on-year increase in operating income)
Wording
Conditional
How definitive the wording is.

Results for this period

Interim period (second quarter)1 January 2026–30 June 2026ConsolidatedJapanese GAAP
Net Sales10,022¥ millionYear on year +15.1%Progress 44.9%
Operating profit1,777¥ millionYear on year +124.0%Progress 45.6%
Ordinary income1,882¥ millionYear on year +140.8%Progress 47.6%
Net income attributable to owners of the parent1,447¥ millionYear on year +150.8%

The width of the band at each stage is based on revenue. The narrower it becomes toward the bottom, the smaller the proportion of revenue that remains as profit. The dotted outline is the full-year forecast and the band inside it is the result for this period. The progress rate is the result divided by the forecast.

Net income per share¥78.06
Financial position at period-end
Total assets26,910¥ million
of which net assets 14,196 ¥ millionEquity ratio 52.7%vs. prior year-end +2.2pt

塗りつぶした部分が自己資本比率です。総資産のうち、返済のいらない自前の資金がどれだけかを表します。The thin vertical line indicates the level at the end of the previous fiscal year.

Cash inflows and outflows
Operating+1,863
Investment+1,932
Financials-519
Net change+3,276

Stacked from zero: upward is an increase in cash, downward a decrease (in ¥ million).The net change represented by the dotted line is the total of three items, calculated from figures provided by the company.

Cash and cash equivalents at end of period¥10,136 million
Segment revenueIT Security Business ¥9,437 million (YoY +15.3%), Video Communications Business ¥495 million (YoY +16.0%), Eco New Business Development ¥89 million (YoY -6.2%)
Segment profitIT Security Business ¥2,335 million (YoY +85.8%), Video Communications Business ¥-131 million, Eco New Business Development ¥-113 million
Outlook and shareholder returns
Full-year earnings forecast
Net Sales¥22,300 million (YoY +12.8%)
Operating profit¥3,900 million (YoY +37.1%)
Ordinary income¥3,950 million (YoY +32.7%)
Profit attributable to owners of the parent¥2,670 million (YoY +16.2%)
Revision to Earnings ForecastNet Sales Not disclosed → ¥22,300 million / Operating profit Not disclosed → ¥3,900 million / Ordinary income Not disclosed → ¥3,950 million / Profit attributable to owners of the parent Not disclosed → ¥2,670 million
Annual Dividend Forecast¥54 → ¥72(+33.3%)
Factors Behind Changes in Business Performance

Sales of proprietary products and services in the IT Security business were strong. Investment related to DX, generative AI and cybersecurity remained firm, while sales of NetAttest EPS were strong due to replacement demand accompanying the EOL of older versions. In the Video Communications business, sales to the public safety sector, including defense, law enforcement and disaster preparedness, remained firm. Eco New Business Development, however, recorded lower sales because its existing lineup, centered on people-presence sensors, accounted for the majority of the business.

Disclosure regarding the going concern assumption

Not applicable.

Change in accounting policy
基準改正に伴う変更 Noそれ以外の変更 No見積りの変更 No修正再表示 No
Changes in the scope of consolidationNew Number of companies 0 / Company name Not disclosed / Excluded Number of companies 1 / Company name (株)Sound-FinTech
Impairment lossNo applicable matters
Breakdown of extraordinary income (loss)Extraordinary income Gain on sale of shares in a subsidiary ¥63 million / Extraordinary loss No applicable matters
Depreciation and amortization¥143 million
Availability of Supplementary Financial Results MaterialsYes
Availability of Financial Results BriefingWhether applicable No / Subject person Not disclosed
Issued Shares at Period-End19,738,888 shares
Treasury Shares at Period-End1,187,598 treasury shares
Results for this period
ItemDetails
Fiscal Period ClassificationInterim period (second quarter)
Accounting standardsJapanese GAAP
Consolidated / non-consolidatedConsolidated
Period Covered1 January 2026–30 June 2026
Net Sales¥10,022 million (YoY +15.1%)
Operating profit¥1,777 million (YoY +124.0%)
Ordinary income¥1,882 million (YoY +140.8%)
Profit attributable to owners of the parent¥1,447 million (YoY +150.8%)
Net income per share¥78.06
Equity ratioEnd of the current fiscal period 52.7 / End of previous period 50.5
Total assets¥26,910 million
Net assets¥14,196 million
Cash flows from operating activities¥1,863 million
Cash flows from investing activities¥1,932 million
Cash flows from financing activities¥-519 million
Cash and cash equivalents at end of period¥10,136 million
Full-year earnings forecastNet Sales ¥22,300 million (YoY +12.8%) / Operating profit ¥3,900 million (YoY +37.1%) / Ordinary income ¥3,950 million (YoY +32.7%) / Profit attributable to owners of the parent ¥2,670 million (YoY +16.2%)
Revision to Earnings ForecastNet Sales Not disclosed → ¥22,300 million / Operating profit Not disclosed → ¥3,900 million / Ordinary income Not disclosed → ¥3,950 million / Profit attributable to owners of the parent Not disclosed → ¥2,670 million
Annual Dividend Forecast¥54 → ¥72(+33.3%)
Segment revenueIT Security Business ¥9,437 million (YoY +15.3%), Video Communications Business ¥495 million (YoY +16.0%), Eco New Business Development ¥89 million (YoY -6.2%)
Segment profitIT Security Business ¥2,335 million (YoY +85.8%), Video Communications Business ¥-131 million, Eco New Business Development ¥-113 million
Depreciation and amortization¥143 million
Impairment lossNo applicable matters
Breakdown of extraordinary income (loss)Extraordinary income Gain on sale of shares in a subsidiary ¥63 million / Extraordinary loss No applicable matters
Disclosure regarding the going concern assumptionNot applicable.
Change in accounting policyChanges due to revisions to standards No / Other changes No / Change in accounting estimate No / Restatement No
Changes in the scope of consolidationNew Number of companies 0 / Company name Not disclosed / Excluded Number of companies 1 / Company name (株)Sound-FinTech
Availability of Supplementary Financial Results MaterialsYes
Availability of Financial Results BriefingWhether applicable No / Subject person Not disclosed
Issued Shares at Period-End19,738,888 shares
Treasury Shares at Period-End1,187,598 treasury shares
Factors Behind Changes in Business PerformanceSales of proprietary products and services in the IT Security business were strong. Investment related to DX, generative AI and cybersecurity remained firm, while sales of NetAttest EPS were strong due to replacement demand accompanying the EOL of older versions. In the Video Communications business, sales to the public safety sector, including defense, law enforcement and disaster preparedness, remained firm. Eco New Business Development, however, recorded lower sales because its existing lineup, centered on people-presence sensors, accounted for the majority of the business.
Items this document does not state (6)
Operating MarginPayout ratioShareholder Return PolicyRegional salesOrders received and order backlogMaterial subsequent events

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.

The company cited strong sales of its proprietary products and services in the IT Security business, firm IT investment related to DX, generative AI and cybersecurity, and strong sales of the NetAttest EPS authentication appliance, driven by replacement demand accompanying the EOL of older versions.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Financial Results Summary for the Second Quarter (Interim Period) of the Fiscal Year Ending December 2026 [Japanese GAAP] (Consolidated) | SOLITON SYSTEMS K.K. (3040) timely disclosure | Komori