Worth reading
36Immaterial
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
-64
¥ million (year-on-year change in net sales)Wording
Conditional
How definitive the wording is.Contents of this document
Supplementary Materials to the Earnings ReportFiscal year ending March 2027, second quarter (first half)6 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥1,223 millions-5.0%
Operating profit¥103 millions-25.0%
Ordinary income¥110 millions-21.9%
Net income¥74 millions-23.1%
Selling, general and administrative expenses¥504 millions
Gross Profit Margin49.6%; no year-on-year change points disclosed
Operating profit margin8.4%; no year-on-year change points disclosed
Full-year earnings forecast
Net Sales
¥2,800 millions
Cost of revenue
¥1,241 millions
Gross profit
¥1,558 millions
Selling, general and administrative expenses
¥1,238 millions
Operating profit
¥320 millions
Ordinary income
¥326 millions
Net income for the current fiscal year
¥223 millions
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Cost of sales and SG&A expenses are progressing largely in line with planBreakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Personnel and Outsourcing Costs¥-115 millions
- Depreciation and amortization expense¥46 millions
- Training and advertising expenses¥22 millions
- Other (communications expenses, etc.)¥17 millions
New initiatives
- Launch of ESS AdminONE Cloud
- Release of ESS REC6 Cloud, ESS REC 6, and the enhanced-functionality version of 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
- Review of the personnel evaluation and compensation systems
Key KPIsA metric the company considers important as a management benchmark.
- Improved workforce performance20 %
Annual Dividend
Annual dividend per share¥27
Payout ratio
A guideline of 33.3% or higher; forecast for the fiscal year ending March 2027 is 80.7%. DOE is guided at approximately 5%; forecast for the fiscal year ending March 2027 is 5%.| Item | Details |
|---|---|
| Document type | Supplementary Materials to the Earnings Report |
| Fiscal Period Covered | Fiscal year ending March 2027, second quarter (first half) |
| Net Sales | ¥1,223 millions (YoY -5.0%) |
| Operating profit | ¥103 millions (YoY -25.0%) |
| Ordinary income | ¥110 millions (YoY -21.9%) |
| Net income | ¥74 millions (YoY -23.1%) |
| Gross Profit Margin | 49.6%; no year-on-year change points disclosed |
| Operating profit margin | 8.4%; no year-on-year change points disclosed |
| Selling, general and administrative expenses | ¥504 millions |
| Full-year earnings forecast | Net Sales ¥2,800 millions / Cost of revenue ¥1,241 millions / Gross profit ¥1,558 millions / Selling, general and administrative expenses ¥1,238 millions / Operating profit ¥320 millions / Ordinary income ¥326 millions / Net income for the current fiscal year ¥223 millions |
| Self-assessment against the plan | Cost of sales and SG&A expenses are progressing largely in line with plan |
| Breakdown of Factors Affecting the Change | Factors Personnel and Outsourcing Costs / Amount ¥-115 millions, Factors Depreciation and amortization expense / Amount ¥46 millions, Factors Training and advertising expenses / Amount ¥22 millions, Factors Other (communications expenses, etc.) / Amount ¥17 millions |
| Key KPIs | Indicator name Improved workforce performance / Value 20 % / Year on year against the same period last year Not disclosed |
| Annual Dividend | Annual dividend per share ¥27 / Interim and Year-End Breakdown Not disclosed |
| Payout ratio | A guideline of 33.3% or higher; forecast for the fiscal year ending March 2027 is 80.7%. DOE is guided at approximately 5%; forecast for the fiscal year ending March 2027 is 5%. |
| New initiatives | Launch of ESS AdminONE Cloud, Release of ESS REC6 Cloud, ESS REC 6, and the enhanced-functionality version of 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, Review of the personnel evaluation and compensation systems |
Items this document does not state (15)
Results for the three months of the current quarterProgress against full-year forecastSegment 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.Licensing revenue declined as customer budgets were allocated to AI investments, among other factors. Consulting and maintenance services derived from the licenses also declined. Cloud services, on the other hand, grew. In terms of profit, depreciation and amortization, training expenses, and advertising expenses increased, but total expenses declined as outsourcing costs fell due to improved productivity.
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.