Sales Expansion and Return to Profitability

「As a result, the group's net sales for the consolidated fiscal year increased ¥283 million from the same period of the previous year, the 12 months from April 2024 to March 2025, to ¥5,141 million, compared with ¥3,853 million in the previous consolidated fiscal year. In terms of earnings, cost reductions, including lower depreciation and amortization, improved operating efficiency, and optimization of personnel allocation, made substantial progress. Operating income was ¥22 million, compared with an operating loss of ¥516 million in the previous consolidated fiscal year, and ordinary income was ¥10 million, compared with an ordinary loss of ¥503 million, marking a return to profitability.」

「In terms of earnings, fixed-cost reductions, including lower depreciation and amortization, narrowed the losses. Operating loss was ¥392 million, compared with an operating loss of ¥629 million in the previous interim consolidated accounting period, and ordinary loss was ¥391 million, compared with an ordinary loss of ¥618 million. Compared with the same period of the previous year, the six months from April to September 2024, operating and ordinary losses each improved by more than ¥300 million.」

「Net loss attributable to owners of the parent was ¥2,964 million, compared with a net loss attributable to owners of the parent of ¥807 million in the previous consolidated fiscal year.」

「As a result, the group's net sales for the interim consolidated accounting period decreased ¥190 million from the same period of the previous year to ¥2,181 million, down 8.0% year on year. In terms of earnings, amid lower sales, operating loss was ¥629 million, compared with an operating loss of ¥445 million in the same period of the previous year, ordinary loss was ¥618 million, compared with an operating loss of ¥435 million, and interim net loss attributable to owners of the parent was ¥572 million, compared with an interim net loss of ¥420 million.」

「For the consolidated fiscal year, the group's net sales increased ¥596 million, or 13.5%, from the previous consolidated fiscal year to ¥5,007 million. Operating loss was ¥789 million, compared with an operating loss of ¥498 million in the previous consolidated fiscal year. On a non-consolidated basis, the company achieved higher sales and earnings and returned to profitability, mainly due to increased sales in the data health business.」

「Under these circumstances, the group's net sales for the first nine months of the current consolidated cumulative period increased ¥752 million from the same period of the previous year to ¥4,003 million, up 23.2% year on year.」

「Under these circumstances, the group's net sales for the first half of the current consolidated cumulative period increased ¥662 million from the same period of the previous year to ¥2,372 million, up 38.7% year on year.」

「In terms of earnings, the former group returned to profitability on higher sales generated by its high-margin data health planning support business. Following the consolidation of DeSC as a subsidiary, however, sales from data utilization services became concentrated in the second half of the fiscal year, while amortization of goodwill amounted to ¥64 million, among other factors. As a result, operating loss was ¥226 million, compared with an operating loss of ¥108 million in the same period of the previous year, ordinary loss was ¥218 million, compared with an ordinary loss of ¥224 million, and quarterly net loss attributable to owners of the parent was ¥224 million, compared with a quarterly net loss of ¥168 million.」

「As a result, cost of sales and selling, general and administrative expenses increased by more than the increase in sales, resulting in an operating loss of ¥369 million, compared with an operating loss of ¥316 million in the same period of the previous year. In non-operating income and expenses, fees of ¥127 million were incurred, mainly consulting fees related to the third-party allotment of shares and the tender offer, resulting in an ordinary loss of ¥468 million, compared with an ordinary loss of ¥302 million.」

「As a result, cost of sales and selling, general and administrative expenses increased by more than the increase in sales, resulting in an operating loss of ¥461 million, compared with an operating loss of ¥195 million in the same period of the previous year.」

「As a result, amid lower sales and higher cost of sales and selling, general and administrative expenses, the company reported an operating loss of ¥108 million, compared with operating income of ¥16 million in the same period of the previous year.」

「As a result, net sales for the consolidated fiscal year were ¥2,990 million, compared with ¥3,330 million in the previous consolidated fiscal year. Amid lower sales and higher selling, general and administrative expenses, operating loss was ¥315 million, compared with operating income of ¥348 million in the previous consolidated fiscal year. Ordinary loss was ¥379 million, compared with ordinary income of ¥363 million, and net loss attributable to owners of the parent was ¥410 million, compared with net income attributable to owners of the parent of ¥283 million.」

「As a result, amid lower sales and higher selling, general and administrative expenses, the company reported an operating loss of ¥316 million, compared with operating income of ¥80 million in the same period of the previous year, an ordinary loss of ¥302 million, compared with ordinary income of ¥80 million, and a quarterly net loss attributable to owners of the parent of ¥261 million, compared with quarterly net income attributable to owners of the parent of ¥35 million.」

「As a result, net sales for the first half of the current consolidated cumulative period were ¥1,295 million, compared with ¥712 million in the same period of the previous year. In terms of earnings, increased personnel expenses to strengthen sales capabilities and respond to higher orders, together with increased research and development investments for new service development and improvement, resulted in an operating loss of ¥195 million, compared with an operating loss of ¥346 million, an ordinary loss of ¥180 million, compared with an ordinary loss of ¥345 million, and a quarterly net loss attributable to owners of the parent of ¥146 million, compared with a quarterly net loss of ¥375 million.」

「As a result, net sales for the first quarter of the current consolidated cumulative period were ¥754 million, compared with ¥295 million in the same period of the previous year. In terms of earnings, increased personnel expenses to strengthen sales capabilities and respond to higher orders, together with increased research and development investments for new service development and improvement, resulted in operating income of ¥16 million, compared with an operating loss of ¥233 million in the same period of the previous year, and ordinary income of ¥17 million, compared with an ordinary loss of ¥233 million.」

「As a result, net sales for the consolidated fiscal year were ¥3,330 million, up 19.7% year on year. In terms of earnings, gross profit increased 22.5% to ¥1,779 million as a result of higher sales.」

「As a result of these order trends, net sales for the first nine months of the current consolidated fiscal year were ¥1,953 million, up 6.4% year on year. In terms of earnings, gross profit increased 8.7% to ¥1,104 million as a result of higher sales. Meanwhile, selling, general and administrative expenses increased ¥209 million from the same period of the previous year, mainly due to research and development expenses and personnel expenses associated with the aggressive development of new products and businesses and the hiring of personnel to strengthen sales capabilities. Operating income was ¥80 million, down 60.2% year on year, ordinary income was ¥80 million, down 60.3%, and quarterly net income attributable to owners of the parent was ¥35 million, down 76.6%, with all three figures declining from the previous year.」

「Net sales to insurers declined during the first half of the current consolidated cumulative period due to the reversal of the prior-year acceleration of sales recognition in some contracts associated with the consumption tax increase. This was more than offset by an increase in sales to welfare offices, as the deadline for subsidies for the health management support business for public assistance recipients was December 2020. Net sales for the period were ¥712 million, down 3.8% year on year. In terms of earnings, operating loss was ¥346 million, compared with an operating loss of ¥154 million in the same period of the previous year, ordinary loss was ¥345 million, compared with an ordinary loss of ¥153 million, and quarterly net loss attributable to owners of the parent was ¥375 million, compared with a quarterly net loss of ¥158 million, reflecting substantial increases in personnel expenses to strengthen sales capabilities and research and development investments for new service development and improvement.」

「Net sales for the first quarter of the current consolidated cumulative period were ¥295 million, down 37.7% year on year and ¥178 million from the same period of the previous year, as some contracts had recognized sales earlier in the previous year in connection with the consumption tax increase. In terms of earnings, in addition to the decline in profit accompanying lower sales, higher personnel expenses to strengthen sales capabilities and research and development investments for new service development and improvement resulted in an operating loss of ¥233 million, compared with operating income of ¥0 million in the same period of the previous year, an ordinary loss of ¥233 million, compared with ordinary income of ¥1 million, and a quarterly net loss attributable to owners of the parent of ¥243 million, compared with quarterly net income attributable to owners of the parent of ¥3 million.」

「As a result, revenue for the current consolidated fiscal year was ¥2,782 million, up 23.3% year on year, while operating profit was ¥262 million, up 619.1%, ordinary profit was ¥263 million, up 602.2%, and net profit attributable to owners of the parent was ¥201 million, up 847.0%.」

「As a result of these orders, revenue for the cumulative third quarter was ¥1,835 million, up 34.2% year on year. In terms of profit and loss, the increase in profit accompanying higher revenue resulted in operating profit of ¥201 million, compared with an operating loss of ¥149 million, ordinary profit of ¥202 million, compared with an ordinary loss of ¥149 million, and quarterly net profit attributable to owners of the parent of ¥150 million, compared with a quarterly net loss of ¥155 million.」

「Revenue was ¥740 million, up 25.7% year on year. In terms of profit and loss, in addition to the increase in profit accompanying higher revenue, the proportion of software development capitalized as assets within the Company's in-house research and development activities increased, reducing development expenses classified as research and development expenses within selling, general and administrative expenses. As a result, the operating loss was ¥154 million, compared with ¥341 million in the same period of the previous year, the ordinary loss was ¥153 million, compared with ¥339 million, and the quarterly net loss attributable to owners of the parent was ¥158 million, compared with ¥359 million.」

「As a result, revenue for the current consolidated fiscal year was ¥2,256 million, down 11.3% year on year, while operating profit was ¥36 million, down 87.4%, ordinary profit was ¥37 million, down 87.0%, and net profit attributable to owners of the parent was ¥21 million, down 89.9%.」

「In addition to these order conditions, many orders are delivered and accepted in the fourth quarter, resulting in cumulative third-quarter revenue of ¥1,367 million, down 19.3% year on year. In terms of profit and loss, losses widened from the same period of the previous year due to lower revenue, deterioration in the cost-of-sales ratio resulting from changes in the product mix, and higher selling, general and administrative expenses. The Company reported an operating loss of ¥149 million, compared with operating profit of ¥125 million, an ordinary loss of ¥149 million, compared with ordinary profit of ¥123 million, and a quarterly net loss attributable to owners of the parent of ¥155 million, compared with quarterly net profit attributable to owners of the parent of ¥105 million.」

「Revenue for the cumulative second quarter was ¥588 million, up 8.1% year on year. Revenue increased slightly from the same period of the previous year due to ongoing projects carried over from the previous consolidated fiscal year. In terms of profit and loss, although revenue increased, higher selling expenses resulted in larger losses than in the same period of the previous year, with an operating loss of ¥341 million, compared with an operating loss of ¥283 million, an ordinary loss of ¥339 million, compared with an ordinary loss of ¥286 million, and a quarterly net loss attributable to owners of the parent of ¥359 million, compared with a quarterly net loss attributable to owners of the parent of ¥288 million.」

「As a result, revenue for the cumulative first quarter was ¥271 million, up 8.8% year on year. In terms of profit and loss, although revenue increased, higher selling expenses resulted in larger losses than in the same period of the previous year, with an operating loss of ¥196 million, compared with an operating loss of ¥169 million, an ordinary loss of ¥195 million, compared with an ordinary loss of ¥172 million, and a quarterly net loss attributable to owners of the parent of ¥203 million, compared with a quarterly net loss attributable to owners of the parent of ¥164 million.」

「As a result, revenue for the current consolidated fiscal year was ¥2,544 million, up 39.2% year on year, representing a substantial increase from the previous fiscal year. In terms of profit and loss, despite investment in strengthening the sales structure and in research and development to improve existing services and prepare to provide new services, the increase in gross profit exceeded these expenses, resulting in operating profit of ¥289 million, up 174.1% year on year, ordinary profit of ¥287 million, up 159.4%, and net profit attributable to owners of the parent of ¥210 million, up 106.5%.」

「As a result, revenue for the cumulative third quarter was ¥1,695 million. In terms of profit and loss, despite investment in increasing the number of operating personnel and in research and development, the increase in gross profit exceeded these expenses, resulting in operating profit of ¥125 million, ordinary profit of ¥123 million and quarterly net profit attributable to owners of the parent of ¥105 million.」

「However, because most orders generate revenue at the end of March, the fiscal year-end for municipalities, revenue for the cumulative second quarter was ¥544 million. In terms of profit and loss, the Company reported an operating loss of ¥283 million, an ordinary loss of ¥286 million and a quarterly net loss attributable to owners of the parent of ¥288 million.」

「However, because most orders generate revenue at the end of March, the fiscal year-end for municipalities, revenue for the cumulative first quarter was ¥250 million. In terms of profit and loss, the Company reported an operating loss of ¥169 million, an ordinary loss of ¥172 million and a quarterly net loss attributable to owners of the parent of ¥164 million.」

「As a result, revenue for the current consolidated fiscal year was ¥1,828 million. In terms of profit and loss, despite investment in strengthening the sales structure and research and development, the increase in gross profit exceeded these expenses, resulting in operating profit of ¥105 million, ordinary profit of ¥110 million and net profit attributable to owners of the parent of ¥101 million.」

「While sales to National Health Insurance programs expanded steadily, the Company lost an order for the Japan Health Insurance Association's generic drug notification service during the period, resulting in a substantial decline in sales to the Association. As a result, revenue for the cumulative third quarter was ¥1,469 million. In terms of profit and loss, despite investment in strengthening the sales structure and research and development, the increase in gross profit exceeded these expenses, resulting in operating profit of ¥127 million, ordinary profit of ¥131 million and quarterly net profit of ¥121 million.」

「Although the number of orders is steadily increasing, most orders generate revenue at the end of March, the fiscal year-end for municipalities, resulting in revenue of ¥584 million for the cumulative second quarter. In terms of profit and loss, the Company reported an operating loss of ¥140 million, an ordinary loss of ¥137 million and a quarterly net loss of ¥136 million.」

「Although the number of orders is steadily increasing, most orders generate revenue at the end of March, the fiscal year-end for municipalities, resulting in revenue of ¥307 million for the cumulative first quarter. In terms of profit and loss, the Company reported an operating loss of ¥59 million, an ordinary loss of ¥59 million and a quarterly net loss of ¥49 million.」

「Because the fiscal year consisted of an irregular three-month accounting period that did not include March, revenue was limited to ¥241 million. In terms of profit and loss, the Company reported an operating loss of ¥120 million, an ordinary loss of ¥116 million and a net loss of ¥136 million.」

「As a result, revenue for the fiscal year increased from the previous year to ¥1,677 million, up 31.8% year on year. In terms of profit and loss, selling expenses increased to strengthen sales activities, but higher operating revenue resulted in operating profit of ¥100 million, compared with an operating loss of ¥82 million in the previous year, and ordinary profit of ¥102 million, compared with an ordinary loss of ¥71 million. Both increased significantly from the previous year.」