Worth reading
37Immaterial
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Deterioration
Direction inferred from the company’s description.Scale
-500
¥ million (change from the previous full-year net sales forecast)Wording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Supplementary materials to the earnings reportSecond quarter of the fiscal year ending October 20262 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥1,152 million-24.8%
Operating profit¥-539 million
Ordinary income¥-464 million
Net income¥-681 million
Results for the three months of the current quarter
Revenue composition
Royalty Revenue
¥292 million-37.1%
Development revenue
¥342 million-1.4%
Other Income
¥43 million+122.1%
Regional Sales
Japan
¥338 million-7.2%
China
¥289 million-13.6%
North America
¥21 million-74.0%
Asia
¥30 million-28.0%
Europe
¥0 million-95.7%
Full-year earnings forecast
Net Sales
¥3,000 million
Operating profit
¥-350 million
Ordinary income
¥-230 million
Profit attributable to owners of the parent
¥-520 million
What the company explained in this material
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Costs of structural reforms for software with limited fit with next-generation strategic products¥143 million
- Impairment loss on other fixed assets¥40 million
- Reduction in the full-year net sales forecast from the previous forecast¥-500 million
- Reduction in the full-year operating profit forecast from the previous forecast¥-450 million
- Reduction in the full-year ordinary profit forecast from the previous forecast¥-380 million
- Reduction in the full-year net income forecast from the previous forecast¥-590 million
New initiatives
- Reorganization and strengthening of the customer-driven business development function and the technology asset development function
- Establishment of a Business Development Department
- Strengthening of common-platform and productization capabilities led by the CPO
- Selective pursuit of low-gross-margin contract projects and concentration of management resources on automotive AI and wearable devices
- Write-off of legacy libraries and other assets, and discontinuation of their development
| Item | Details |
|---|---|
| Document type | Supplementary materials to the earnings report |
| Fiscal Period Covered | Second quarter of the fiscal year ending October 2026 |
| Net Sales | ¥1,152 million (YoY -24.8%) |
| Operating profit | ¥-539 million |
| Ordinary income | ¥-464 million |
| Net income | ¥-681 million |
| Results for the three months of the current quarter | Revenue composition Royalty Revenue ¥292 million (YoY -37.1%) / Development revenue ¥342 million (YoY -1.4%) / Other Income ¥43 million (YoY +122.1%) / Regional Sales Japan ¥338 million (YoY -7.2%) / China ¥289 million (YoY -13.6%) / North America ¥21 million (YoY -74.0%) / Asia ¥30 million (YoY -28.0%) / Europe ¥0 million (YoY -95.7%) |
| Full-year earnings forecast | Net Sales ¥3,000 million / Operating profit ¥-350 million / Ordinary income ¥-230 million / Profit attributable to owners of the parent ¥-520 million |
| Breakdown of Factors Affecting the Change | Factors Costs of structural reforms for software with limited fit with next-generation strategic products / Amount ¥143 million, Factors Impairment loss on other fixed assets / Amount ¥40 million, Factors Reduction in the full-year net sales forecast from the previous forecast / Amount ¥-500 million, Factors Reduction in the full-year operating profit forecast from the previous forecast / Amount ¥-450 million, Factors Reduction in the full-year ordinary profit forecast from the previous forecast / Amount ¥-380 million, Factors Reduction in the full-year net income forecast from the previous forecast / Amount ¥-590 million |
| New initiatives | Reorganization and strengthening of the customer-driven business development function and the technology asset development function, Establishment of a Business Development Department, Strengthening of common-platform and productization capabilities led by the CPO, Selective pursuit of low-gross-margin contract projects and concentration of management resources on automotive AI and wearable devices, Write-off of legacy libraries and other assets, and discontinuation of their development |
Items this document does not state (21)
Gross Profit MarginOperating profit marginSelling, general and administrative expensesProgress against full-year forecastSelf-assessment against the planSegment resultsKey KPIsUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A
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.Net sales and profits at each level were revised downward due to shipment adjustments for smartphones resulting from soaring semiconductor prices, reduced or suspended development investment in the automotive field, and the implementation of structural reforms. The reasons cited for the first-half results were development delays involving Chinese smart devices and the domestic automotive field, a decline in smartphone shipments, and lower development revenue from automotive projects.
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.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.