Stagnation in Outsourcing Debugging Services
First written in FY2016. 4 of 10 entries say "Materialised", first in FY2020. Latest entry: FY2026.
Digital Hearts Holdings moved to the "Worse" side of this theme in 2019.
1 other company's latest entry also says "Restated".
- FY2026RestatedAnnual report
「The Group has formulated a business plan based on the assumption that outsourcing of QA solution services will continue to advance. If outsourcing of QA solution services does not advance as expected by the Group, this could affect the Group’s business and financial results.」
It continues to disclose the view that the outsourcing stagnation risk relates to QA solution services. - FY2025ReframedAnnual report
「The Group’s core business is software testing. It provides debugging services to detect defects in game software and QA solutions to detect defects in enterprise systems, such as web-based and business systems. The Group has formulated a business plan based on the assumption that outsourcing of QA solution services will continue to advance. If outsourcing of QA solution services does not advance as expected by the Group, this could affect the Group’s business and financial results.」
The outsourcing stagnation risk has been reframed from conventional system testing services to QA solution services for enterprise customers. - FY2022RestatedAnnual report
「The Group has formulated a business plan based on the assumption that outsourcing of system testing will continue to advance. If outsourcing of system testing does not advance as expected by the Group, this could affect the Group’s business and financial results.」
It continues to disclose the risk of making progress in outsourced system testing a premise of the business plan. - FY2021-Q3MaterialisedAnnual report
「However, due to changes in customers’ development schedules associated with the spread of COVID-19 and difficult market conditions for amusement equipment, revenue from debugging services for the nine months ended the third quarter decreased 9.6% year on year to ¥9,633.430 million.」
Revenue from debugging services continued to decline because of changes in customers’ development schedules and difficult market conditions for amusement equipment. - FY2021-Q2MaterialisedAnnual report
「However, as the spread of COVID-19 affected client companies, some title development was delayed or postponed. As a result, revenue from debugging services for the six months ended 30 September was ¥6,258.283 million, down 9.6% year on year.」
In connection with the risk of stagnation in outsourcing demand, delays and postponements in customers’ title development actually occurred, and debugging revenue declined 9.6% year on year. - FY2021-Q1MaterialisedAnnual report
「However, some client companies experienced delays or postponements in title development, and demand for debugging, translation and localization temporarily declined due to the impact of lockdowns overseas and other factors. As a result, revenue from debugging services for the three months ended 30 June was ¥3,023.103 million, down 12.2% year on year.」
In connection with the risk of stagnation in outsourcing demand, a decline in demand for debugging and other services actually occurred because of delays and postponements in customers’ title development and overseas lockdowns. - FY2020MaterialisedAnnual report
「Demand for outsourcing to the Group temporarily contracted because, among other factors, the COVID-19 pandemic caused some delays in customers’ development schedules.」
In connection with the existing risk based on the assumption that outsourcing of system testing will advance, it states that the pandemic caused delays in customers’ development and a short-term contraction in demand. - FY2019ReframedAnnual report
「The Group has formulated a business plan based on the assumption that outsourcing of system testing will continue to advance. If outsourcing of system testing does not advance as expected by the Group, this could affect the Group’s business and financial results.」
The outsourcing stagnation risk has been clearly shifted from conventional debugging services to system testing services. - FY2017RestatedAnnual report
「We have formulated a business plan based on the assumption that outsourcing of debugging will continue to advance. However, the industry has a relatively short history, and some aspects of its future remain uncertain. If outsourcing of debugging does not advance as expected by the Group, this could affect the Group’s business and financial results.」
It reconfirms the uncertainty of making progress in outsourced debugging a premise of the business plan. - FY2016First statedAnnual report
「We have formulated a business plan based on the assumption that outsourcing of debugging will continue to advance. However, the industry has a relatively short history, and some aspects of its future remain uncertain. If outsourcing of debugging does not advance as expected by the Group, this could affect the Group’s business and financial results.」
It explicitly identifies as a risk the business plan’s assumption that outsourcing of debugging will continue to advance.