Return to profitability next fiscal year and a gross margin of at least 30%

「Breaking away from a development-investment-led model and moving to the next stage with a return to profitability after 6 years」

「Although revenue declined 10.0% as the business structure changed, the continued growth of the data licensing business from the previous fiscal year lifted the gross margin from 38.0% to 44.3% and operating income from ¥68,561 thousand to ¥73,074 thousand, resulting in continued improvement in the earnings structure.」

「As a result, revenue from the data licensing business grew to more than 40% of total revenue. Although revenue declined 6.1% as the business structure changed, the continued growth of the data licensing business from the previous fiscal year lifted the gross margin from 32.3% to 38.0% and operating income from ¥41,918 thousand to ¥68,561 thousand, resulting in continued improvement in the earnings structure.」

「As a result, operating income was ¥32,893 thousand, ordinary income was ¥31,997 thousand and quarterly net income was ¥30,280 thousand.」

「As a result, operating income was ¥18,153 thousand, ordinary income was ¥17,826 thousand and quarterly net income was ¥16,681 thousand.」

「Specifically, growth in the data licensing business improved the gross margin from 9% in the fiscal year ended March 2015 to 24% in the fiscal year ended March 2016 and 32% in the cumulative third-quarter period. Revenue was ¥1,309,326 thousand and quarterly net income was ¥31,297 thousand. The Company expects to further strengthen its earnings structure through continued efforts in data-related services that use its proprietary database, one of the Company's distinguishing features.」

「Revenue for the cumulative second-quarter period was ¥906,054 thousand and quarterly net income was ¥25,305 thousand. The gross margin improved from 9% in the fiscal year ended March 2015 to 24% in the fiscal year ended March 2016 and 32% in the cumulative second-quarter period. The Company expects to further strengthen its earnings structure by continuing to expand the high-margin data services-related business.」

「However, from during the fiscal year ended March 2015, the Company pursued structural reforms focused mainly on reducing the cost ratio and achieved the target level. As part of its efforts to improve the gross margin, the metadata business, a new data services-related business launched in the fourth quarter of the fiscal year ended March 2016, has made a steady start. The Company plans to return to profitability during the current fiscal year. Specifically, revenue for the cumulative first-quarter period was ¥412,772 thousand, compared with consolidated revenue of ¥384,844 thousand in the same period of the previous year. As revenue continued to grow, the gross margin improved from 9% in the fiscal year ended March 2015 to 24% in the fiscal year ended March 2016 and 30% in the cumulative first-quarter period. The Company expects to further strengthen its earnings structure by continuing to expand the high-margin data services-related business.」

「The data services-related business also began to make steady progress during the current fiscal year. The Company plans to expand the business further and return to profitability next fiscal year. It expects to further improve the gross margin, which has been trending upward from 9% in the previous fiscal year to 24% in the current fiscal year, with a target of at least 30% next fiscal year by further expanding the high-margin data services-related business, thereby further strengthening its earnings structure.」