Worth reading
55In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
216
¥ millionWording
Conditional
How definitive the wording is.Contents of this document
Financial results presentationFiscal year ending March 20266 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥2,584 million+3.3%
Operating profit¥303 million+1.7%
Ordinary income¥315 million+4.1%
Net income¥212 million-3.4%
Selling, general and administrative expenses¥996 million
Full-year earnings forecast
Fiscal Period CoveredFiscal year ending March 2027
Net Sales
¥2,800 million
Cost of sales
¥1,241 million
Gross profit
¥1,558 million
Selling, general and administrative expenses
¥1,238 million
Operating profit
¥320 million
Ordinary income
¥326 million
Net income for the current fiscal year
¥223 million
Progress against full-year forecast 通期の予想に対して、いまどこまで進んだかの割合です。
Fiscal year ending March 2026
Net Sales-7.7%
Cost of sales-0.9%
Gross profit-13.5%
Selling, general and administrative expenses-17.1%
Operating profit1.0%
Ordinary income4.0%
Net income for the current fiscal year1.0%
Sales Composition
Licensing-27.9%
Maintenance Services-0.7%
Cloud Services-4.2%
Consulting Services-2.8%
SIO on-site services123.0%
Other24.5%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue fell short of the initial plan but reached a record high. Profit was broadly in line with both the initial plan and the previous fiscal year.Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Personnel and Outsourcing Costs¥88 million
- Advertising expenses¥16 million
- Other operating expenses (payment processing fees, communications expenses, training expenses, etc.)¥24 million
- Software depreciation expense¥-50 million
New initiatives
- Launch of ESS AdminONE Cloud and ESS REC6 Cloud
- Release of enhanced-function versions of ESS REC 6 and ESS AdminONE
- Development of new AI-based products and cloud services to automate inspections and audits
- Launch of a new privileged ID management consulting service
- Assignment of development specialists to the quality task force
- Review of the personnel evaluation and compensation systems
Key KPIsA metric the company considers important as a management benchmark.
- Maintenance service renewal rate96 %
- Number of ESS AdminONE implementation projects300 Engagements
- Number of SmartIT Forum attendees250 people
- Event satisfaction (very satisfied or satisfied)90 Over %
- Human performance improvement target20 %
Annual Dividend
Fiscal year ending March 2026
Annual dividend per share¥26
Forecast for the fiscal year ending March 2027
Annual dividend per share¥27
Payout ratio
Fiscal year ending March 202681.4 %
Forecast for the fiscal year ending March 202780.7 %
DOETarget of approximately 5%
| Item | Details |
|---|---|
| Document type | Financial results presentation |
| Fiscal Period Covered | Fiscal year ending March 2026 |
| Net Sales | ¥2,584 million (YoY +3.3%) |
| Operating profit | ¥303 million (YoY +1.7%) |
| Ordinary income | ¥315 million (YoY +4.1%) |
| Net income | ¥212 million (YoY -3.4%) |
| Selling, general and administrative expenses | ¥996 million |
| Full-year earnings forecast | Fiscal Period Covered Fiscal year ending March 2027 / Net Sales ¥2,800 million / Cost of sales ¥1,241 million / Gross profit ¥1,558 million / Selling, general and administrative expenses ¥1,238 million / Operating profit ¥320 million / Ordinary income ¥326 million / Net income for the current fiscal year ¥223 million |
| Progress against full-year forecast | Fiscal year ending March 2026 Net Sales -7.7% / Cost of sales -0.9% / Gross profit -13.5% / Selling, general and administrative expenses -17.1% / Operating profit 1.0% / Ordinary income 4.0% / Net income for the current fiscal year 1.0% / Sales Composition Licensing -27.9% / Maintenance Services -0.7% / Cloud Services -4.2% / Consulting Services -2.8% / SIO on-site services 123.0% / Other 24.5% |
| Self-assessment against the plan | Revenue fell short of the initial plan but reached a record high. Profit was broadly in line with both the initial plan and the previous fiscal year. |
| Breakdown of Factors Affecting the Change | Factors Personnel and Outsourcing Costs / Amount ¥88 million, Factors Advertising expenses / Amount ¥16 million, Factors Other operating expenses (payment processing fees, communications expenses, training expenses, etc.) / Amount ¥24 million, Factors Software depreciation expense / Amount ¥-50 million |
| Key KPIs | Indicator Maintenance service renewal rate / Value 96 % / Year on year against the same period last year Not disclosed, Indicator Number of ESS AdminONE implementation projects / Value 300 Engagements / Year on year against the same period last year Not disclosed, Indicator Number of SmartIT Forum attendees / Value 250 people / Year on year against the same period last year Not disclosed, Indicator Event satisfaction (very satisfied or satisfied) / Value 90 Over % / Year on year against the same period last year Not disclosed, Indicator Human performance improvement target / Value 20 % / Year on year against the same period last year Not disclosed |
| Annual Dividend | Fiscal year ending March 2026 Annual dividend per share ¥26 / Interim and Year-End Breakdown Not disclosed / Forecast for the fiscal year ending March 2027 Annual dividend per share ¥27 / Interim and Year-End Breakdown Not disclosed |
| Payout ratio | Fiscal year ending March 2026 81.4 % / Forecast for the fiscal year ending March 2027 80.7 % / DOE Target of approximately 5% |
| New initiatives | Launch of ESS AdminONE Cloud and ESS REC6 Cloud, Release of enhanced-function versions of ESS REC 6 and ESS AdminONE, Development of new AI-based products and cloud services to automate inspections and audits, Launch of a new privileged ID management consulting service, Assignment of development specialists to the quality task force, Review of the personnel evaluation and compensation systems |
Items this document does not state (16)
Gross Profit MarginOperating profit marginResults for the three months of the current quarterSegment resultsUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAcquisition 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.Revenue for the fiscal year ended March 2026 fell short of plan due mainly to the loss of major license deals, but exceeded the previous fiscal year owing to a 96% maintenance service renewal rate and growth in cloud and consulting services. For the fiscal year ending March 2027, the Company will invest in product functionality enhancements, human capital, research and development, advertising and promotion, and training.
How to read this page
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