Quality and Profitability Risks in Software Development Projects
First written in FY2016. 18 of 35 entries say "Restated". Latest entry: 2026-10-30.
Ags moved to the "Worse" side of this theme in 2026, 4 years after the typical company in this theme (2022).
The whole theme swung hardest in 2017: 9 of 35 companies on the "Worse" side.
8 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「Provision for losses on contracts ¥0 ¥1.425 million」
A provision for losses on contracts of ¥1.425 million, which had not been recorded at the end of the previous fiscal year, was recorded at the end of the current fiscal year, putting the quality and profitability risks of development projects back into quantitative terms. - 2026-05-14MitigatedEarnings
「利益面では、売上高の増加及び生産性や利益率の向上などにより、営業利益は2,449百万円（前連結会計年度比32.4％増）、経常利益は2,508百万円（同32.0％増）となりました。」
売上高の増加に加えて生産性・利益率の向上を要因として営業利益が増加し、ソフトウエア開発を含む収益性の改善を実績として示している。 - FY2026-H1MitigatedAnnual report
「Due in part to an increase in orders for DX projects for general corporate customers and an increase in projects for local governments, revenue was ¥4,795 million, up 63.3% year on year, and segment profit was ¥992 million, up 162.7%.」
Revenue and segment profit from software development increased significantly year on year, indicating continued improvement in the quality and profitability of development projects previously disclosed. - FY2025MitigatedAnnual report
「Due in part to an increase in large projects for general corporate customers, local governments and financial institutions, revenue was ¥7,354 million, up 32.0% from the previous fiscal year, and segment profit was ¥1,200 million, up 54.3%.」
The profitability of the development segment improved as the number of software development projects increased and profit margins and productivity improved. - FY2025-H1MitigatedAnnual report
「Due in part to an increase in large projects for financial institutions and local governments, revenue was ¥2,937 million, up 16.1% year on year, and segment profit was ¥377 million, up 16.5%.」
Revenue and segment profit from software development increased owing to the rise in large projects for financial institutions and local governments, indicating continued improvement from the deterioration in the quality and profitability of development projects previously recognized. - FY2024MitigatedAnnual report
「Profit was ¥778 million, up 85.6% year on year, owing to the completion of low-margin projects arising in the previous consolidated fiscal year and the securing of profit margins for each project.」
Segment profit from software development increased 85.6% year on year as low-margin projects were completed and profit margins were secured for each project. This indicates progress in addressing the quality and profitability risks recognized in the previous fiscal year. - FY2024-Q3MitigatedAnnual report
「Due in part to the expansion of on-site development for large projects for financial institutions and the expansion of on-site development for individual projects for general corporate customers, revenue was ¥4,009 million, up 13.7% year on year, and segment profit was ¥573 million, up 128.0%, due in part to the completion of low-margin projects from the previous fiscal year and the securing of profit margins on individual projects.」
As the completion of low-margin projects from the previous fiscal year progressed and profit margins were secured for each project, segment profit from software development increased 128.0% year on year. The response to the quality and profitability risks recognized since the previous fiscal year has progressed further. - FY2024-Q2MitigatedAnnual report
「(Software development) Revenue was ¥2,530 million, up 10.7% year on year, due to the expansion of on-site development for large projects for financial institutions and the expansion of on-site development for individual projects for general corporations. Segment profit was ¥324 million, up 167.1%, owing to the completion of low-margin projects from the previous fiscal year and the securing of profit margins for each project.」
The profitability of software development improved significantly as low-margin projects from the previous fiscal year were completed and profit margins were secured for each project. Meanwhile, a provision for losses on contracts of ¥418,000 was recorded at the end of the second quarter. - FY2024-Q1MitigatedAnnual report
「Although revenue was ¥1,091 million, down 3.1% year on year, due to the completion of low-margin projects from the previous fiscal year, segment profit was ¥118 million, up 318.2%, reflecting the securing of profit margins on projects for general corporate customers, financial institutions and public organizations.」
The profitability of software development improved significantly as low-margin projects from the previous fiscal year were completed and profit margins were secured for each project. The disclosure indicates that measures addressing the risk of losses on contracts recognized in the previous fiscal year have progressed. - FY2023-Q3WorsenedAnnual report
「Provision for losses on contracts 246 2,505」
The provision for losses on contracts increased from ¥246,000 at the end of the previous consolidated fiscal year to ¥2.505 million at the end of the third quarter. A decline in software development projects and profit margins was also disclosed. - FY2023-Q2WorsenedAnnual report
「Provision for losses on contracts 246 1,349」
The provision for losses on contracts increased from ¥246,000 at the end of the previous consolidated fiscal year to ¥1.349 million at the end of the second quarter. Revenue and segment profit from software development also declined year on year. - FY2023-Q1WorsenedAnnual report
「(Software Development) Due in part to a decline in software development projects for local governments and financial institutions, revenue was ¥1,125 million, down 6.6% year on year, and segment profit was ¥28 million, down 77.6%.」
Revenue and segment profit from software development declined year on year, and a decline in the profit margin was also disclosed. Unlike the previous fiscal year, this filing does not indicate recognition of estimated losses, such as through a new provision for losses on contracts. - FY2022MitigatedAnnual report
「Provision for losses on contracts 151,686 246」
The provision for losses on contracts, which stood at ¥151.686 million at the end of the previous fiscal year, declined to ¥246,000 at the end of the current fiscal year. Quality and profitability risks associated with order contracts continue to be disclosed. - FY2022-Q3RestatedAnnual report
「During the first nine months of the current consolidated fiscal year, there were no occurrences of matters that could materially affect investors' decisions and no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
A comprehensive disclosure states that there have been no material changes in the quality and profitability risks of the software development projects. - FY2022-Q1RestatedAnnual report
「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors' decisions and no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
A comprehensive disclosure states that there have been no material changes in the quality and profitability risks of the software development projects. A provision for losses on contracts was also recorded at the end of the current quarter. - FY2021MaterialisedAnnual report
「To provide for future losses related to order contracts, the company recognized the estimated amount of losses related to order contracts at the end of the fiscal year.」
The company recognized the estimated loss on software development order contracts and recorded ¥151.686 million as an addition to the provision for losses on contracts. Revenue and segment profit from software development also declined year on year. - FY2021-Q3RestatedAnnual report
「During the first nine months of the current consolidated fiscal year, there were no occurrences of matters that could materially affect investors' decisions and no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
A comprehensive disclosure states that there have been no material changes in the quality and profitability risks of the software development projects. - FY2021-Q2RestatedAnnual report
「During the second quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors' decisions and no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
A comprehensive disclosure states that there have been no material changes in the quality and profitability risks of the software development projects. - FY2021-Q1RestatedAnnual report
「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors' decisions and no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
A comprehensive disclosure states that there have been no material changes in the quality and profitability risks of the software development projects. - FY2020-Q2RestatedAnnual report
「During the second quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors' decisions and no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
A comprehensive disclosure states that there have been no material changes in the quality and profitability risks of the software development projects. - FY2020-Q1RestatedAnnual report
「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors' decisions and no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
A comprehensive disclosure states that there have been no material changes in the quality and profitability risks of the software development projects. - FY2019RestatedAnnual report
「However, despite having established such systems, if defects or malfunctions occur in systems developed by the company, or if unforeseen factors arise, such as an increase in work hours resulting from major specification changes during development, the group's performance and financial condition could be affected.」
The risks of defects, malfunctions and increased man-hours due to specification changes in software development are reiterated. - FY2019-Q3RestatedAnnual report
「During the first nine months of the current consolidated fiscal year, there were no occurrences of matters that could materially affect investors' decisions and no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
A comprehensive disclosure states that there have been no material changes in the quality and profitability risks of the software development projects. - FY2019-Q2RestatedAnnual report
「During the second quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors' decisions and no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
A comprehensive disclosure states that there have been no material changes in the quality and profitability risks of the software development projects. - FY2019-Q1RestatedAnnual report
「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors' decisions and no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
A comprehensive disclosure states that there have been no material changes in the quality and profitability risks of the software development projects. - FY2018-Q3RestatedAnnual report
「During the first nine months of the current consolidated fiscal year, there were no occurrences of matters that could materially affect investors' decisions and no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
A comprehensive disclosure states that there have been no material changes in the quality and profitability risks of the software development projects. - FY2018-Q2RestatedAnnual report
「During the second quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors' decisions and no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
A comprehensive disclosure states that there have been no material changes in the quality and profitability risks of the software development projects. - FY2018-Q1RestatedAnnual report
「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors' decisions and no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
A comprehensive disclosure states that there have been no material changes in the quality and profitability risks of the software development projects. - FY2017RestatedAnnual report
「However, despite having established such systems, if defects or malfunctions occur in systems developed by the company, or if unforeseen factors arise, such as an increase in work hours resulting from major specification changes during development, the group's performance and financial condition could be affected.」
The risks of defects, malfunctions and increased man-hours due to specification changes in software development are reiterated. - FY2017-Q3RestatedAnnual report
「During the first nine months of the current consolidated fiscal year, there were no occurrences of matters that could materially affect investors' decisions and no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
A comprehensive disclosure states that there have been no material changes in the quality and profitability risks of the software development projects. - FY2017-Q2RestatedAnnual report
「During the second quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors' decisions and no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
A comprehensive disclosure states that there have been no material changes in the quality and profitability risks of the software development projects. - FY2017-Q1RestatedAnnual report
「During the first quarter of the current consolidated cumulative period, there were no occurrences of matters that could materially affect investors' decisions and no material changes to the business and other risks described in the annual securities report for the previous fiscal year.」
A comprehensive disclosure states that there have been no material changes in the quality and profitability risks of the software development projects described for the previous fiscal year. - FY2016First statedAnnual report
「However, despite having established such systems, if defects or malfunctions occur in systems developed by the company, or if unforeseen factors arise, such as an increase in work hours resulting from major specification changes during development, the group's performance and financial condition could be affected.」
Verification at the inquiry and quotation stage, progress management, quality control at shipment, and quality assurance by a dedicated department are implemented as countermeasures.