Decline in IT cloud profit due to personnel costs associated with workforce expansion
First written in FY2017-Q1. 7 of 28 entries say "Worsened", first in FY2017-Q2. Latest entry: FY2026-H1.
Cyberlinks moved to the "Worse" side of this theme in 2024.
0 other companies' latest entry also says "Softened".
- FY2026-H1SoftenedAnnual report
「In the distribution cloud business, revenue increased due to higher recurring revenue resulting from wider adoption of the Sendonet V2 fresh-ordering system for retailers and the BXNOAH EDI service for retailers, as well as higher revenue as implementation work for various services including @rms V6 progressed. On the other hand, profit declined due to increased labour expenses resulting from the staff expansion implemented in the previous fiscal year to strengthen the organisation and higher salary levels. As a result, revenue for the interim consolidated accounting period was ¥2,758 million, up 10.2% from the previous interim consolidated accounting period, and segment profit (ordinary profit) was ¥324 million, down 1.2%.」
Although the burden of labour expenses from staff expansion and higher salary levels continued, the decline in distribution cloud segment profit narrowed to 1.2% year on year from 24.4% in the previous interim period. - FY2025SoftenedAnnual report
「In the distribution cloud business, revenue increased due to higher recurring revenue resulting from wider adoption of the BXNOAH EDI service for retailers and the Cloud EDI-Platform EDI service for wholesalers, higher revenue as implementation work for @rms V6 progressed, and higher revenue following revisions to various service fees. On the other hand, profit declined due to increased labour and personnel expenses accompanying higher salary levels and hiring, as well as increased software amortisation related to @rms V6 development, among other factors.」
Although the burden of personnel and labour expenses and software amortisation continued, full-year segment profit was ¥778 million, down 7.1% from the previous fiscal year, narrowing the decline from 24.4% in the interim period. - FY2025-H1WorsenedAnnual report
「In the distribution cloud business, revenue increased due to higher recurring revenue resulting from wider adoption of the Cloud EDI-Platform EDI service for wholesalers, the BXNOAH EDI service for retailers and the RetailPro sales management system for specialty stores, higher revenue as implementation work progressed for @rms V6, which was released in the previous fiscal year, and higher revenue following revisions to various service fees. On the other hand, profit declined due to increased labour and personnel expenses resulting from higher salary levels and hiring to strengthen the implementation structure and development capabilities, as well as increased software amortisation related to @rms V6 development, among other factors.」
Revenue in the distribution cloud business increased due to wider service adoption, implementation of @rms V6 and revised fees, while profit declined as personnel expenses associated with higher salary levels and hiring, and software amortisation for @rms V6 increased. - FY2024-H1WorsenedAnnual report
「In the distribution cloud business, recurring revenue increased as the provision of cloud services expanded, including the Cloud EDI-Platform EDI service for wholesalers and the BXNOAH EDI service for retailers. On the other hand, profit declined due to higher labour costs resulting from increased salary levels and hiring, as well as increased software amortisation, among other factors. As a result, revenue for the interim consolidated accounting period was ¥2,308 million, up 4.1% from the previous interim consolidated accounting period, and segment profit (ordinary profit) was ¥341 million, down 24.4%.」
Recurring revenue and revenue increased as the provision of cloud services expanded, but distribution cloud segment profit declined 24.4% year on year due to higher labour costs accompanying increased salary levels and hiring, and increased software amortisation. - FY2024-Q1WorsenedAnnual report
「In the distribution cloud business, recurring revenue increased as the provision of cloud services expanded, including the BXNOAH EDI service for retailers and the Cloud EDI-Platform EDI service for wholesalers. On the other hand, profit declined because labour costs and other expenses increased due to higher salary levels and hiring to strengthen development and sales capabilities, and software amortisation related to developing functions for C2Platform, the intercompany platform that enables DX in business negotiations in the distribution industry, also increased.」
Recurring revenue increased as the provision of cloud services expanded, but profit in the distribution cloud business declined due to higher labour costs from increased salary levels and hiring, and increased software amortisation related to C2Platform function development. - FY2023WorsenedAnnual report
「As a result, revenue for the consolidated fiscal year was ¥3,523 million, up 35.7% year on year, and segment profit (ordinary profit) was ¥45 million, down 72.8% year on year.」
In the mobile network business, revenue increased as the number of stores expanded, while segment profit declined 72.8% due to changes to the incentive structure and other factors. - FY2023-Q2RestatedAnnual report
「In addition, while software amortisation expenses related to the @rms core system for medium-sized and large customers declined, travel expenses increased as sales activities and other operations became more active in the post-pandemic environment, personnel and labour expenses increased due to hiring to strengthen development and sales capabilities, and utilities expenses increased as electricity charges rose.」
Although software amortisation expenses for the @rms core system declined, higher costs from more active sales activities, hiring and rising electricity charges continued. The distribution cloud business recorded segment profit of ¥452 million, up 22.5% year on year despite the higher costs. - FY2023-Q1SoftenedAnnual report
「In addition, while software amortisation expenses related to the @rms core system for medium-sized and large customers declined due to the amortisation having largely ended, travel expenses increased as sales activities and other operations became more active in the post-pandemic environment, personnel and labour expenses increased due to hiring to strengthen development and sales capabilities, and utilities expenses increased as electricity charges rose. As a result, revenue for the cumulative first quarter ended was ¥1,090 million, up 6.2% year on year, and segment profit (ordinary profit) was ¥207 million, up 32.7% year on year.」
Although the cost burden from more active hiring and sales activities and higher utilities expenses continued, profit in the distribution cloud business increased 32.7% year on year due in part to lower costs following the completion of @rms amortisation. - FY2022-Q3AdvancedAnnual report
「Software amortisation declined because amortisation related to the @rms core system for medium-sized and large customers had largely ended, while research and development expenses declined because the research and development phase for the aforementioned C2Platform was completed by June 2021, among other factors. As a result, revenue for the cumulative third quarter ended was ¥3,171 million, up 10.9% year on year, and segment profit (ordinary profit) was ¥582 million, up 55.0% year on year.」
The largely completed amortisation of the @rms core system and completion of the C2Platform research and development phase reduced the cost burden, and profit in the distribution cloud business increased 55.0% year on year. - FY2022-Q1AdvancedAnnual report
「On the other hand, software amortisation declined mainly because amortisation for certain functions of the @rms core system for medium-sized and large customers ended. As a result, revenue for the cumulative first quarter ended was ¥1,026 million, up 11.2% year on year, and segment profit (ordinary profit) was ¥156 million, up 49.7% year on year.」
The end of amortisation for certain functions of the @rms core system reduced the cost burden, and distribution cloud segment profit increased 49.7% year on year. - FY2021SoftenedAnnual report
「On the other hand, research and development expenses increased as a result of focusing on developing new functions for the intercompany platform C2Platform, which enables DX in business negotiations in the distribution industry, and redevelopment of the existing @rms Fresh service, among other initiatives. As a result, revenue for the consolidated fiscal year was ¥4,021.658 million, up 6.9% year on year, and segment profit (ordinary profit) was ¥565.543 million, up 80.1% year on year.」
Although research and development expenses increased, revenue and profit in the distribution cloud business rose substantially, and the previous theme of profit declines due to the cost burden weakened. - FY2021-Q3AdvancedAnnual report
「Cost of sales declined mainly because software amortisation for certain functions of the @rms core system for medium-sized and large customers ended. As a result, revenue for the cumulative third quarter ended was ¥2,858.400 million, up 4.0% year on year, and segment profit (ordinary profit) was ¥375.802 million, up 61.6% year on year.」
The end of software amortisation for certain functions of the @rms core system reduced the cost burden, and distribution cloud segment profit increased 61.6% year on year. - FY2021-Q2AdvancedAnnual report
「Cost of sales declined mainly because software amortisation for certain functions of the @rms core system for medium-sized and large customers ended. As a result, revenue for the cumulative second quarter ended was ¥1,842.335 million, up 4.3% year on year, and segment profit (ordinary profit) was ¥215.467 million, up 67.3% year on year.」
Amortisation of certain functions of the @rms core system ended, and distribution cloud segment profit increased 67.3% year on year despite higher expenses including research and development investment. - FY2021-Q1Increased profit following the completion of amortisationAnnual report
「Cost of sales declined mainly because software amortisation for certain functions of the @rms core system for medium-sized and large customers ended. As a result, revenue for the cumulative first quarter ended was ¥923.142 million, up 6.2% year on year, and segment profit (ordinary profit) was ¥104.680 million, up 238.4% year on year.」
Amortisation of certain functions of the @rms core system ended, and distribution cloud segment profit increased 238.4% year on year despite higher expenses including research and development investment. - FY2020-Q2Increased profit absorbing higher costsAnnual report
「Research and development expenses related to developing new functions for the intercompany platform C2Platform and software amortisation related to development investment in the next version of the @rms core system increased. On the other hand, selling, general and administrative expenses declined due to lower advertising and promotional expenses following the cancellation of trade shows scheduled for participation as a result of the infectious disease outbreak, lower travel expenses due to restrictions on customer visits, and lower goodwill amortisation, among other factors. As a result, revenue was approximately in line with the same period of the previous year, while profit exceeded the same period of the previous year.」
Although research and development expenses for C2Platform and amortisation of the next version of the @rms core system increased, selling, general and administrative expenses declined due to lower advertising and promotional expenses, travel expenses and goodwill amortisation, among other factors, and profit exceeded the same period of the previous year. - FY2020-Q1SoftenedAnnual report
「In addition to increased software amortisation related to development investment in the next version of the @rms core system, selling, general and administrative expenses declined due to lower advertising and promotional expenses following the cancellation of trade shows scheduled for participation as a result of the infectious disease outbreak, lower travel expenses due to restrictions on customer visits, and lower goodwill amortisation, among other factors. As a result, both revenue and profit exceeded the same quarter of the previous year.」
The burden of software amortisation for the next version continues, but lower selling, general and administrative expenses due to reductions in advertising and promotional expenses, travel expenses and goodwill amortisation, among other factors, resulted in IT cloud revenue and profit exceeding the same quarter of the previous year. - FY2019WorsenedAnnual report
「On the other hand, profit fell below the previous fiscal year due to increased software amortisation related to development of the next version of the @rms core system, as well as compensation expenses incurred in connection with the cancellation or termination of system implementations.」
In addition to increased software amortisation, compensation expenses associated with the cancellation or termination of system implementations became a new factor weighing on profit, resulting in IT cloud segment profit of ¥306.792 million, down 0.1% from the previous fiscal year. - FY2019-Q3Increased profit absorbing higher costsAnnual report
「In addition, the increase in revenue absorbed higher costs such as software amortisation, and profit also exceeded the same period of the previous year.」
Although higher costs such as software amortisation continued, increased revenue in the cloud services business for the distribution industry absorbed the higher costs, and profit exceeded the same period of the previous year. - FY2019-Q2Continuing cost burden and increased profitAnnual report
「Although lower research and development expenses and other factors supported profit, profit fell below the same period of the previous year due to increased software amortisation related to development investment in the next version of the @rms core system and increased personnel expenses accompanying staff expansion.」
Increased software amortisation and personnel expenses due to staff expansion continued to be cited as burdens on profit. Meanwhile, the segment table disclosed IT cloud profit of ¥173.015 million, up 35.2% year on year. - FY2019-Q1SoftenedAnnual report
「On the other hand, although software amortisation related to development investment in the next core version of @rms increased, both revenue and profit exceeded the same period of the previous year due to the smaller scale of research and development investment and an increase in capitalised software assets, among other factors.」
The amortisation burden for the next core version of @rms continues, but the IT cloud business changed from a segment loss in the same period of the previous year to profit of ¥92.605 million due to the reduced scale of research and development investment and the capitalisation of software assets, among other factors. - FY2018RestatedAnnual report
「On the other hand, profit in this area fell below the previous fiscal year due to the increase in software amortisation related to the next core version of @rms released in the previous fiscal year, as well as increased research and development investment in AI and other areas.」
The continuing situation in which amortisation of the next core version of @rms and increased research and development investment in AI and other areas weigh on profit in the cloud services business for the distribution industry is cited. - FY2018-Q3RestatedAnnual report
「In addition to the increase in software amortisation related to the next core version of @rms released in the previous fiscal year, research and development investment in AI and other areas also increased, causing profit in this area to fall below the same period of the previous year.」
The continuing burden on profit in the cloud services business for the distribution industry from increased software amortisation and research and development investment in AI and other areas is cited. - FY2018-Q2SoftenedAnnual report
「In addition to the increase in software amortisation related to the next core version of @rms released in the previous fiscal year, research and development investment in AI and other areas also increased, causing profit in this area to fall below the same period of the previous year.」
The burden on profit from increased software amortisation and research and development investment in AI and other areas continues, but the IT cloud business recorded segment profit of ¥127.929 million for the cumulative second quarter ended, marking a change from the segment loss in the previous quarter. - FY2018-Q1WorsenedAnnual report
「On the other hand, revenue from spot projects involving system implementation and customisation declined, while software amortisation related to development investment in the next version of @rms and research and development investment in AI and other areas increased. As a result, both revenue and profit in the cloud services business for the distribution industry fell below the same period of the previous year. Revenue for the cumulative first quarter ended was ¥1,363.973 million, down 12.5% year on year, and the segment recorded a loss (ordinary loss) of ¥6.258 million, compared with segment profit of ¥118.699 million in the same period of the previous year.」
In addition to the decline in revenue from spot projects, amortisation of the next version of @rms and research and development investment in AI and other areas increased, and the distribution cloud services business changed from profit in the same period of the previous year to a segment loss of ¥6.258 million. - FY2017ReframedAnnual report
「Although labour costs accompanying staff expansion and amortisation associated with the release of the next core version of @rms increased, profit in this area exceeded the previous fiscal year.」
Labour costs associated with staff expansion and amortisation of the next version increased, but profit in the cloud services business for the distribution industry exceeded the previous fiscal year, marking a change from the previous period of declining profit. - FY2017-Q3RestatedAnnual report
「However, profit in this area fell below the same period of the previous year due to the increase in labour costs accompanying staff expansion to expand the business, as well as the increased amortisation burden associated with the release of the next core version of @rms, among other factors. As a result, revenue for the cumulative third quarter ended was ¥4,106.319 million, up 11.3% year on year, and segment profit (ordinary profit) was ¥214.117 million, down 38.6% year on year.」
Labour costs associated with staff expansion and amortisation of the next core version of @rms continued to weigh on profit, resulting in distribution cloud segment profit of ¥214.117 million, down 38.6% year on year. - FY2017-Q2WorsenedAnnual report
「However, profit in this area fell below the same period of the previous year due to the increase in labour costs accompanying staff expansion to expand the business, as well as the increased amortisation burden associated with the release of the next core version of @rms, among other factors.」
In addition to the labour cost burden accompanying the existing staff expansion, the amortisation burden associated with the release of the next core version of @rms increased, resulting in IT cloud segment profit of ¥147.053 million, down 52.6% year on year. - FY2017-Q1First statedAnnual report
「However, profit in this area fell below the same period of the previous year due mainly to the increased labour cost burden accompanying staff expansion.」
Revenue from cloud services for the distribution industry increased, while the increased labour cost burden accompanying staff expansion was identified as a factor behind the decline in profit.