Concentration of revenue recognition in the third quarter due to municipal contracts
First written in FY2017-Q1. 7 of 30 entries say "Restated". Latest entry: 2026-08-05.
The whole theme swung hardest in 2018: 4 of 31 companies on the "Worse" side.
34 other companies' latest entry also says "Restated".
- 2026-08-05RestatedEarnings
「The Group's earnings tend to be concentrated in the second half because of the timing of local-government budget execution and orders for data utilization services. Net sales and income for the first quarter of the current consolidated cumulative period were within the range incorporated into the full-year plan.」
The Company reaffirmed the concentration of earnings in the second half due to the timing of local-government budget execution and other factors. - FY2026Reduction in cash used in operating activitiesAnnual report
「Cash used in operating activities was ¥219 million (¥1,876 million used in the previous consolidated fiscal year).」
Discloses that cash used in operating activities decreased from ¥1,876 million in the previous fiscal year to ¥219 million. - FY2026-H1Improvement in operating cash flowAnnual report
「Cash provided by operating activities was ¥715 million (¥1,731 million used in the same period of the previous year). This was mainly due to decreases in accounts receivable and contract assets.」
As accounts receivable and contract assets decreased, operating cash flow improved from an outflow of ¥1,731 million in the same period of the previous year to an inflow of ¥715 million. - FY2025ReframedAnnual report
「As the group mainly contracts with local governments, many of its projects run through the end of March, the fiscal year-end for local governments, resulting in collections of operating revenue being concentrated in the first quarter. Consequently, interest-bearing debt is high at the fiscal year-end, but is repaid from collections received after April, resulting in a decline in interest-bearing debt at the end of the first quarter.」
Following the change to a fiscal year ending in March, the explanation of the concentration of collections has changed from the fourth quarter to the first quarter. - FY2025-H1Update to interim-period funding burdenAnnual report
「Cash used in operating activities was ¥1,731 million (¥1,976 million used in the same period of the previous year). This was mainly due to the recognition of an interim net loss before income taxes and the increase in accounts receivable and contract assets.」
Increases in accounts receivable and contract assets and other factors resulted in cash used in operating activities, with cash used during the interim period totaling ¥1,731 million. This was down from ¥1,976 million in the same period of the previous year. - FY2024Update to full-year cash collection structureAnnual report
「Because our group's contracts are primarily with municipalities, many contracts run through the end of March, the municipalities' fiscal year-end, and cash receipts from operating activities are concentrated in the fourth quarter.」
The company reconfirmed the seasonal pattern under which collections of operating revenue from local-government contracts are concentrated in the fourth quarter, resulting in the need to raise working capital during the period through overdrafts and other means. - FY2024-Q3Update to contract assets and cash balanceAnnual report
「Current assets increased by ¥2,355 million from the end of the previous fiscal year to ¥10,958 million at the end of the third quarter, as accounts receivable and contract assets increased by ¥2,484 million, while cash and deposits decreased by ¥149 million.」
Discloses that accounts receivable and contract assets increased by ¥2,484 million, while cash and deposits decreased by ¥149 million, resulting in a ¥2,355 million increase in current assets from the end of the previous fiscal year. - FY2024-Q2WorsenedAnnual report
「Cash used in operating activities was ¥1,976 million (¥1,646 million used in the same period of the previous year). This was mainly due to the recognition of a quarterly net loss before income taxes and the increase in accounts receivable and contract assets.」
Accounts receivable and contract assets increased by ¥1,496 million, and cash used in operating activities also increased from ¥1,646 million in the same period of the previous year to ¥1,976 million. - FY2024-Q1Update to contract assets and cash balanceAnnual report
「Current assets increased by ¥633 million from the end of the previous fiscal year to ¥7,282 million at the end of the first quarter, mainly due to a ¥774 million increase in accounts receivable and contract assets.」
Discloses that accounts receivable and contract assets increased by ¥774 million and current assets increased by ¥633 million from the end of the previous fiscal year. - FY2023-Q3Update to contract assets and cash balanceAnnual report
「Current assets increased by ¥2,757 million from the end of the previous fiscal year to ¥11,403 million at the end of the third quarter, as accounts receivable and contract assets increased by ¥2,052 million and cash and deposits increased by ¥646 million.」
Discloses that accounts receivable and contract assets related to the timing of sales and collections for local-government projects and other contracts increased by ¥2,052 million, while cash and deposits also increased by ¥646 million. - FY2023-Q2WorsenedAnnual report
「Cash used in operating activities was ¥1,646 million (¥1,309 million used in the same period of the previous year). This was mainly due to the recognition of a quarterly net loss before income taxes and the increase in accounts receivable and contract assets.」
Cash used in operating activities increased from ¥1,309 million in the same period of the previous year to ¥1,646 million, mainly due to increases in accounts receivable and contract assets. - FY2023-Q1Update to contract assets and cash balanceAnnual report
「Current assets increased by ¥4,052 million from the end of the previous fiscal year to ¥8,646 million at the end of the first quarter, as accounts receivable and contract assets increased by ¥463 million and cash and deposits increased by ¥3,469 million, including proceeds from the payment for a private placement of shares.」
Discloses that contract assets increased by ¥463 million and cash and deposits increased by ¥3,469 million due to proceeds from the payment for a private placement of shares. - FY2022-Q3Update to contract assets and cash balanceAnnual report
「Current assets increased by ¥1,078 million from the end of the previous fiscal year to ¥9,159 million at the end of the third quarter, as contract assets included in accounts receivable and contract assets increased by ¥246 million due to the adoption of the revenue recognition accounting standard and other standards, while cash and deposits decreased by ¥488 million due to payments for work in progress and tax payments.」
Discloses that contract assets increased by ¥246 million in connection with the business structure in which sales and collections are concentrated in the second half, while cash and deposits decreased by ¥488 million due to expense payments and tax payments. - FY2022-Q2WorsenedAnnual report
「Cash used in operating activities was ¥1,309 million (¥978 million used in the same period of the previous year). This was mainly because the collection period had not yet arrived for revenue recognized as contract assets.」
Cash used in operating activities increased from ¥978 million in the same period of the previous year to ¥1,309 million, mainly because the collection period had not yet arrived for revenue recognized as contract assets. - FY2022-Q1Update on first-quarter working capital requirementsAnnual report
「Current assets increased by ¥354 million from the end of the previous fiscal year at the end of the first quarter, as contract assets included in accounts receivable and contract assets increased by ¥777 million following the adoption of the revenue recognition standard and other changes, while cash and deposits declined by ¥390 million due to payments for work in progress and taxes.」
Discloses an increase in contract assets due to the adoption of the revenue recognition accounting standard, and a ¥390 million decrease in cash and deposits due to payments for work in progress and tax payments. - FY2021-Q3RestatedAnnual report
「Because the projects undertaken by our group are primarily based on contracts with municipalities, which are the insurers, many contracts run through the end of March, the municipalities' fiscal year-end. As a result, our group has seasonal fluctuations, with revenue in the second half exceeding that in the first half.」
The company reconfirms the seasonal pattern of revenue concentration in the second half in line with municipal fiscal year-ends. - FY2021-Q2WorsenedAnnual report
「Cash used in operating activities was ¥978 million, compared with ¥408 million used in the same period of the previous year. This was because work in progress remained high through the end of the second quarter as most revenue is recognized in March, while payments for personnel, outsourcing and other costs incurred during the period exceeded cash receipts from sales.」
Due to increased work in progress and advance payments for costs associated with revenue concentration in the second half, cash used in operating activities increased from ¥408 million in the same period of the previous year to ¥978 million. - FY2021-Q1Update on first-quarter working capital requirementsAnnual report
「Current assets decreased by ¥524 million from the end of the previous fiscal year at the end of the first quarter, as work in progress increased by ¥192 million due to the concentration of revenue in the second half, while cash and deposits declined by ¥744 million due to payments for work in progress and taxes.」
It disclosed that work in progress increased by ¥192 million due to the concentration of revenue in the second half, while cash and deposits declined by ¥744 million due to payments for costs and taxes. - FY2020Details of the timing of cash receipts and funding requirementsAnnual report
「Because our group's contracts are primarily with municipalities, many contracts run through the end of March, the municipalities' fiscal year-end, and cash receipts from operating activities are concentrated in the fourth quarter.」
The company specifies that, due to municipal contracts, both revenue and cash receipts are concentrated in the second half, with cash receipts from operating activities concentrated in the fourth quarter. - FY2020-Q3RestatedAnnual report
「Because the projects undertaken by our group are primarily based on contracts with municipalities, which are the insurers, many contracts run through the end of March, the municipalities' fiscal year-end. As a result, our group has seasonal fluctuations, with revenue in the second half exceeding that in the first half.」
The company reconfirms the seasonal pattern of revenue concentration in the second half in line with municipal fiscal year-ends. - FY2020-Q2Update on seasonal work-in-progress and working capital requirementsAnnual report
「Cash used in operating activities was ¥408 million. This was because work in progress remained high through the end of the second quarter as most revenue is recognized in March, while payments for personnel, outsourcing and other costs incurred during the period exceeded cash receipts from sales.」
The company reconfirms the structure in which revenue concentration in the second half increases work in progress and payments for personnel and outsourcing costs precede cash receipts, disclosing cash used in operating activities of ¥408 million. - FY2019-Q3RestatedAnnual report
「Because the projects undertaken by our group are primarily based on contracts with municipalities, which are the insurers, many contracts run through the end of March, the municipalities' fiscal year-end. As a result, our group has seasonal fluctuations, with revenue in the second half exceeding that in the first half.」
The company reconfirms the seasonal pattern of revenue concentration in the second half, as many projects run through the municipalities' fiscal year-end. - FY2019-Q2WorsenedAnnual report
「Cash used in operating activities was ¥760 million. This was because work in progress remained high through the end of the second quarter as most revenue is recognized in March, while payments for personnel, outsourcing and other costs incurred during the period exceeded cash receipts from sales.」
Due to increased work in progress and advance payments for costs associated with revenue concentration in the third quarter, cash outflows from operating activities increased from ¥464 million in the same period of the previous year to ¥760 million. - FY2019-Q1Disclosure of seasonal declines in work in progress and cashAnnual report
「Current assets decreased by ¥432 million from the end of the previous fiscal year at the end of the first quarter, as work in progress increased by ¥100 million due to the concentration of revenue in the third quarter, while cash and deposits declined by ¥611 million due to payments for work in progress and taxes.」
It states that work in progress increased as revenue recognition became concentrated in the third quarter, while cash and deposits declined by ¥611 million due to payments for work in progress and taxes. - FY2018-Q3Expected increase in revenue recognized in the fourth quarterAnnual report
「In the consolidated fiscal year, many projects are expected to reach customer acceptance in the fourth quarter, and revenue recognized in the fourth quarter is expected to be higher than usual.」
In addition to the traditional seasonal concentration of revenue in the third quarter under municipal contracts, the company states that many projects will reach customer acceptance in the fourth quarter this fiscal year, so revenue in that quarter is expected to exceed the usual level. - FY2018-Q2Disclosure of seasonal operating cash outflowsAnnual report
「Cash used in operating activities was ¥464 million. This was because work in progress remained high through the end of the second quarter as most revenue is recognized in March, while payments for personnel, outsourcing and other costs incurred during the period exceeded cash receipts from sales.」
The company quantifies the impact of third-quarter revenue concentration, with cash used in operating activities reaching ¥464 million due to increased work in progress and advance payments for personnel and outsourcing costs. - FY2018-Q1RestatedAnnual report
「Because the projects undertaken by our group are primarily based on contracts with municipalities, which are the insurers, many contracts run through the end of March, the municipalities' fiscal year-end, and much of our annual revenue is recognized in the third quarter. In addition, because fixed costs such as personnel and selling expenses are incurred at roughly even monthly levels, our group has seasonal characteristics that result in an operating loss through the cumulative second-quarter period.」
The company reconfirms the seasonal pattern in which revenue is concentrated in the third quarter under municipal contracts and an operating loss is likely through the cumulative second-quarter period. - FY2017-Q3RestatedAnnual report
「Because the projects we undertake are primarily based on contracts with municipalities, which are the insurers, many contracts run through the end of March, the municipalities' fiscal year-end, and much of our annual revenue is recognized in the third quarter. In addition, because fixed costs such as personnel and selling expenses are incurred at roughly even monthly levels, our business has seasonal characteristics that result in an operating loss through the cumulative second-quarter period.」
The company reconfirms the seasonal pattern in which revenue is concentrated in the third quarter in line with municipal fiscal year-ends and an operating loss is likely through the cumulative second-quarter period. - FY2017-Q2RestatedAnnual report
「Because our revenue is primarily generated under contracts with municipalities, which are the insurers, many of our contracts run through March, the municipalities' fiscal year-end. As a result, our revenue is subject to seasonal fluctuations, with revenue in the third quarter exceeding that in the other quarters.」
The company reconfirms the seasonal pattern of revenue concentration in the third quarter in line with municipal fiscal year-ends. - FY2017-Q1First statedAnnual report
「Because the projects we undertake are primarily based on contracts with municipalities, which are the insurers, many contracts run through the end of March, the municipalities' fiscal year-end, and much of our annual revenue is recognized in the third quarter. In addition, because fixed costs such as personnel and selling expenses are incurred at roughly even monthly levels, our business has seasonal characteristics that result in an operating loss through the cumulative second-quarter period.」
The company clearly states that its business structure tends to produce an operating loss through the cumulative second-quarter period because revenue is concentrated in the third quarter in line with municipal fiscal year-ends, while fixed costs are incurred evenly.