Profitability deteriorates due to fewer core-system projects and higher selling expenses
First written in FY2017-Q1. 14 of 40 entries say "Worsened", first in FY2017-Q2. Latest entry: 2026-11-11.
No other company in this theme has enough history to compare yet.
- 2026-11-11WorsenedResults
「一部案件において機器納期の遅れ等により売上計上が第３四半期以降にずれ込んだことから、当中間会計期間の売上高は前年同期を下回りました。」
機器納期の遅れ等により売上計上が後ずれし、ソリューション事業の中間期売上高が前年同期を下回った。 - FY2028-H1WorsenedAnnual report
「As a result, the Solutions Business reported revenue of ¥858.084 million, down 18.5% year on year, and segment profit (operating profit) of ¥259.789 million, down 20.7%.」
The contribution from large projects to the Solutions Business was limited, resulting in year-on-year declines in revenue and segment profit. Meanwhile, orders exceeded the prior-year period, and projects are being accumulated for revenue recognition from the third quarter onward. - FY2026AdvancedAnnual report
「As a result, revenue in the Solutions business was ¥2,070.787 million, up 24.5% year on year, while segment profit (operating profit) was ¥608.087 million, up 26.0%.」
Revenue in the Solutions business increased 24.5% and segment profit increased 26.0%, indicating an improvement in reported profitability. The operating margin also rose from 29.0% to 29.4%. - FY2027-H1AdvancedAnnual report
「As a result, the solutions business reported revenue of ¥1,052.389 million, up 24.5% from the same period of the previous year, and segment profit (operating income) of ¥327.540 million, up 30.5%.」
Revenue in the solutions business increased 24.5% year on year and segment profit increased 30.5%, indicating numerical improvement in profitability. - FY2025AdvancedAnnual report
「Solutions business: Revenue 1,752,482 1,663,778; operating income 485,914 482,630; operating margin 27.7% 29.0%」
Although the solutions business reported lower revenue, the operating margin rose from 27.7% in the previous fiscal year to 29.0%, indicating continued improvement in profitability. - FY2026-H1MitigatedAnnual report
「Although revenue per project trended lower as cloud adoption and mobile use advanced, the number of projects increased slightly, and operating income rose year on year, mainly due to a higher service mix and improved gross margins.」
Although revenue per project in the solutions business trended lower, operating income increased year on year against a backdrop of a slight increase in the number of projects and improvements in the service mix and gross margin, easing the deterioration in profitability. - FY2024Updated the FY2024 full-year results for the solutions businessAnnual report
「As a result, the solutions business reported revenue of ¥1,752.482 million and segment profit (operating income) of ¥485.914 million.」
Year-on-year comparisons were not provided because the Company transitioned to non-consolidated financial statements, but it disclosed FY2024 full-year revenue of ¥1,752.482 million, operating income of ¥485.914 million and an operating margin of 27.7% for the solutions business. - FY2024-Q4Updated the cumulative third-quarter results for the solutions businessAnnual report
「As a result, the solutions business reported revenue of ¥1,241.290 million and segment profit (operating income) of ¥332.220 million.」
The Company disclosed revenue of ¥1,241.290 million and segment profit of ¥332.220 million for the solutions business in the cumulative third-quarter period. - FY2024-Q3Update segment results for the six months endedAnnual report
「As a result, the solutions business reported revenue of ¥864.484 million and segment profit (operating income) of ¥237.867 million.」
The Company disclosed revenue of ¥864.484 million and segment profit of ¥237.867 million for the solutions business in the cumulative second-quarter period. - FY2024-Q2AdvancedAnnual report
「As a result, the solutions business reported revenue of ¥391.533 million, up 10.0% from the previous fiscal year, and segment profit (operating income) of ¥109.659 million, up 39.4%.」
Revenue in the solutions business increased 10.0% and segment profit increased 39.4%, indicating numerical improvement in profitability. - FY2023Updated the FY2023 full-year segment resultsAnnual report
「As a result, the solutions business reported revenue of ¥1,626.996 million and segment profit (operating income) of ¥387.292 million.」
The results were updated to the FY2023 full-year results for the solutions business. The operating margin was 23.8%, a slight decline from 24.1% in the previous fiscal year. - FY2023-Q3Updated the second-quarter results for the solutions businessAnnual report
「As a result, the solutions business reported revenue of ¥723.397 million and segment profit (operating income) of ¥162.948 million.」
The Company disclosed revenue of ¥723.397 million and segment profit of ¥162.948 million for the solutions business in the cumulative second-quarter period. - FY2022AdvancedAnnual report
「Solutions business: Revenue 1,844,447 2,196,104; operating income 381,313 528,891; operating margin 20.7% 24.1%」
Revenue, operating income and the operating margin in the solutions business increased from the previous fiscal year, with the operating margin rising from 20.7% to 24.1%. However, some large-scale projects continued to be postponed. - FY2022-Q3AdvancedAnnual report
「As a result, the solutions business reported revenue of ¥1,509.004 million, up 9.7% from the previous fiscal year, and segment profit (operating income) of ¥364.656 million, up 30.3%.」
Revenue in the solutions business increased 9.7% and segment profit increased 30.3%, continuing the numerical improvement from the stagnation of large-scale projects and the deterioration in profitability through the previous fiscal year. - FY2022-Q2AdvancedAnnual report
「As a result, the solutions business reported revenue of ¥1,005.488 million, up 9.9% from the previous fiscal year, and segment profit (operating income) of ¥243.716 million, up 28.3%.」
Revenue in the solutions business increased 9.9% and segment profit increased 28.3%, continuing the numerical improvement in profitability. However, large-scale projects again showed signs of stagnation and postponement. - FY2022-Q1MitigatedAnnual report
「As a result, the solutions business reported revenue of ¥564.496 million, up 17.3% from the previous fiscal year, and segment profit (operating income) of ¥146.633 million, up 34.0%.」
Revenue in the solutions business increased 17.3% and segment profit increased 34.0%, indicating that the stagnation of large-scale projects and deterioration in profitability through the previous fiscal year have eased. - FY2021-Q3WorsenedAnnual report
「Accordingly, large-scale solution projects continued to be postponed and otherwise stagnate. As a result, the solutions business reported revenue of ¥1,375.908 million, down 20.9% from the previous fiscal year, and segment profit (operating income) of ¥279.915 million, down 32.0%.」
Continued postponement of large-scale solution projects resulted in a 20.9% decline in revenue and a 32.0% decline in segment profit in the solutions business. - FY2021-Q2WorsenedAnnual report
「In the solutions business, discussions concerning telework and other environmental improvements accelerated while the second wave of COVID-19 showed no sign of abating. However, discussions on large-scale solution projects continued to stagnate, including through postponements. As a result, the solutions business reported revenue of ¥915.008 million, down 16.0% from the previous fiscal year, and segment profit (operating income) of ¥189.968 million, down 26.5%.」
Although discussions related to telework accelerated, postponements and stagnation involving large-scale projects continued, resulting in a 16.0% decline in revenue and a 26.5% decline in segment profit. - FY2021-Q1WorsenedAnnual report
「In the solutions business, the Company received inquiries concerning the development of telework environments as a measure against COVID-19, but discussions on large-scale solution projects stagnated and orders declined significantly from the same period of the previous year. As a result, the solutions business reported revenue of ¥481.183 million, down 21.1% from the previous fiscal year, and segment profit (operating income) of ¥109.425 million, down 32.2%.」
Although inquiries concerning telework-environment development emerged, revenue and segment profit declined year on year due to stagnant discussions and a significant decline in orders for large-scale solution projects. - FY2020WorsenedAnnual report
「However, ahead of the end of manufacturer support for Windows 7 and Windows Server 2008 in January 2020, equipment revenue, including PCs and servers, accounted for a larger share of sales, resulting in lower profit margins.」
Revenue in the solutions business increased 17.0%, while the operating margin declined from 14.5% in the previous fiscal year to 12.4% due to the higher proportion of equipment sales. - FY2020-Q3WorsenedAnnual report
「However, ahead of the end of manufacturer support for Windows 7 and Windows Server 2008 in January 2020, equipment revenue, including PCs and servers, accounted for a larger share of sales, resulting in lower profit margins.」
Although revenue and segment profit in the solutions business increased, the higher proportion of equipment sales ahead of the end of support reduced profit margins. - FY2020-Q2WorsenedAnnual report
「However, ahead of the end of manufacturer support for Windows 7 and Windows Server 2008 in January 2020, equipment revenue, including PCs and servers, accounted for a larger share of sales, reducing the gross margin.」
Although revenue in the solutions business increased, the higher proportion of equipment sales ahead of the end of support for Windows 7 and Windows Server 2008 reduced the gross margin, resulting in a 22.8% year-on-year decline in segment profit. - FY2020-Q1WorsenedAnnual report
「However, ahead of the end of manufacturer support for Windows 7 in January 2020, purchases of equipment such as PCs and servers increased, raising the cost ratio.」
Although revenue in the solutions business increased, higher equipment purchases associated with the end of support for Windows 7 and other factors raised the cost ratio, resulting in a 9.9% year-on-year decline in segment profit. - FY2019AdvancedAnnual report
「As a result, the solutions business reported revenue of ¥1,876.257 million, up 3.2% from the previous fiscal year, and segment profit (operating income) of ¥272.023 million, up 37.7%.」
Revenue in the solutions business increased 3.2% and segment profit increased 37.7%, with the figures showing improved profitability. - FY2019-Q3AdvancedAnnual report
「As a result, the solutions business reported revenue of ¥1,437.074 million, up 4.6% from the previous fiscal year, and segment profit (operating income) of ¥219.019 million, up 57.0%.」
Revenue in the solutions business increased 4.6% and segment profit increased 57.0%, with the figures showing improved profitability following the expiration of relocation-related costs and other factors. - FY2019-Q2MitigatedAnnual report
「As a result, the solutions business reported revenue of ¥1,001.290 million, down 2.0% from the previous fiscal year, and segment profit (operating income) of ¥181.124 million, up 40.4%.」
While revenue in the solutions business declined, segment profit increased 40.4% year on year, indicating that the deterioration in profitability has eased. - FY2019-Q1MitigatedAnnual report
「As a result, the solutions business reported revenue of ¥539.554 million, up 2.9% from the previous fiscal year, and segment profit (operating income) of ¥111.098 million, up 31.0%.」
Revenue in the solutions business increased 2.9% year on year and segment profit increased 31.0%, indicating that the profitability deterioration reported in the previous fiscal year has eased. - FY2018WorsenedAnnual report
「As a result, the solutions business reported revenue of ¥1,818.688 million, down 0.9% from the previous fiscal year, and segment profit (operating income) of ¥197.499 million, down 22.9%.」
The solutions business reported lower full-year revenue, while segment profit fell 22.9% year on year amid front-loaded investment, including relocation-related costs. - FY2018-Q3Investment ahead of earnings due to relocation-related costsAnnual report
「However, relocation-related costs, including advertising, rent and consumables, increased, resulting in investment ahead of earnings. As a result, the solutions business reported revenue of ¥1,373.620 million and segment profit (operating income) of ¥139.495 million.」
Although the solutions business remained profitable, the Company explains that investment was front-loaded due to advertising, rent and other costs associated with relocating the Information Creation Community. - FY2018-Q2RestatedAnnual report
「As a result, the solutions business reported revenue of ¥1,021.219 million and segment profit (operating income) of ¥128.991 million.」
It reports that the solutions business recorded segment profit, continuing the result from the previous quarter. - FY2018-Q1MitigatedAnnual report
「As a result, the solutions business reported revenue of ¥524.216 million and segment profit (operating income) of ¥84.812 million.」
For the solutions business, which had reported smaller project sizes and lower profitability in the previous fiscal year, segment profit was ¥84.812 million in the first quarter. - FY2017MitigatedAnnual report
「During the first half, replacement projects for PBX systems and reviews of peripheral infrastructure were generally steady. However, in addition to the completion of demand for My Number-related work, project sizes tended to shrink in both the information infrastructure and information content fields. Nevertheless, signs of a gradual recovery began to emerge from the fourth quarter onward.」
Although project sizes continued to shrink in the first half, the Company states that signs of a gradual recovery emerged from the fourth quarter onward. - FY2017-Q3WorsenedAnnual report
「During the first half, replacement projects for PBX systems and reviews of peripheral infrastructure were generally steady. However, in addition to the completion of demand for My Number-related work, project sizes tended to shrink in both the information infrastructure and information content fields. As a result, the solutions business reported revenue of ¥1,351.984 million, down 13.1% year on year, and segment profit (operating income) of ¥178.994 million, down 29.5%.」
Project sizes in the solutions business continued to shrink, resulting in continued year-on-year declines in revenue and segment profit. - FY2017-Q2WorsenedAnnual report
「However, profitability declined from the same period of the previous year due to the completion of demand for My Number-related work, fewer large-scale projects, and higher sales promotion and advertising expenses related to the Information Creation Community and education services.」
It provides further detail on the decline in profitability in the solutions business, citing the completion of demand for My Number-related work, fewer large-scale projects and higher costs related to the Information Creation Community and education services. - FY2017-Q1First statedAnnual report
「However, profitability deteriorated due to fewer version-upgrade projects for core systems and increases in selling, general and administrative expenses, including sales promotion and advertising expenses.」
It explains that profitability in the solutions business deteriorated due to fewer projects and higher selling, general and administrative expenses.