Quality and delivery risks in system development projects
First written in FY2016. 10 of 21 entries say "Mitigated", first in FY2020. Latest entry: 2026-11-06.
Systems Design moved to the "Worse" side of this theme in 2026, 4 years after the typical company in this theme (2022).
The whole theme swung hardest in 2017: 9 of 37 companies on the "Worse" side.
9 other companies' latest entry also says "Worsened".
- 2026-11-06WorsenedResults
「昨年受注した大規模システム開発案件において想定を上回る原価の増加に伴い受注損失を計上したことから、営業利益、経常利益及び親会社株主に帰属する中間純利益は前年同期を下回りました。」
大規模システム開発案件の原価増加に伴う受注損失が発生し、受注損失引当金は前期末の22,240千円から当中間期末の64,895千円へ増加した。 - FY2026WorsenedAnnual report
「The balance of the provision for loss on orders was ¥22.240 million at the end of the consolidated fiscal year.」
The provision for loss on orders increased from ¥4.749 million at the end of the previous fiscal year to ¥22.240 million, indicating that loss risks related to defects, specification changes and additional processes in system development work had increased again. - 2026-05-08WorsenedResults
「受注損失引当金の増加17,490千円」
前中間期末にゼロだった受注損失引当金が、2026年3月期末には22,240千円となり、前年度末の4,749千円から増加している。品質・採算・納期に関する損失リスクが再び拡大した数値が示されている。 - FY2026-H1MitigatedAnnual report
「Provision for loss on orders 4,749 －」
The ¥4.749 million provision for loss on orders at the end of the previous consolidated fiscal year fell to zero at the end of the interim consolidated accounting period. On a numerical basis, measures addressing losses related to unprofitable projects had been reduced as of the interim period. - FY2025WorsenedAnnual report
「The balance of the provision for loss on orders was ¥4.749 million at the end of the consolidated fiscal year.」
A provision for loss on orders of ¥4.749 million was recognized, although there was no balance at the end of the previous fiscal year, putting loss risks related to defects and delays in development work and deteriorating profitability back into numerical terms. - FY2023MitigatedAnnual report
「In the system development business, our group has established a review committee comprising experts from across departments. As part of the pre-submission checks on proposals and estimates before orders are received, at the business negotiation stage, we are further strengthening the proposal review framework to identify risks at an early stage, improve estimate accuracy and avoid accepting high-risk, low-profitability projects. In addition, we are similarly strengthening the progress-management review framework for each project to check progress after orders are received and prevent issues such as delivery delays.」
The review framework has been strengthened both for proposal and estimate assessments before orders are received and for progress management after orders are received, with specific measures being implemented to address quality, profitability and delivery risks. - FY2022MitigatedAnnual report
「There is no provision for loss on orders at the end of the consolidated fiscal year.」
In connection with measures addressing the risk of defects and delays in system development projects, the provision for loss on orders fell to zero at the end of the fiscal year. Reviews of proposals and estimates before orders are received and progress-management reviews after orders are received are continuing. - FY2022-Q2MitigatedAnnual report
「Provision for loss on orders 80,593 －」
The provision for loss on orders decreased from ¥80.593 million at the end of the previous consolidated fiscal year to zero at the end of the second quarter, indicating progress in addressing losses related to unprofitable projects. However, the disclosure does not state that the risks have been eliminated. - FY2022-Q1MitigatedAnnual report
「In the system development business, orders were received for projects that had been postponed from the previous fiscal year because of the impact of COVID-19, and subsidiary performance also remained solid.」
Orders were secured for projects that had been postponed from the previous fiscal year, and the operating loss in the system development business narrowed from ¥56.308 million in the same period of the previous year to ¥19.929 million. The impact related to project delays has been partly mitigated. - FY2021MitigatedAnnual report
「In the system development business, our group has established a review committee comprising experts from across departments. As part of the pre-submission checks on proposals and estimates before orders are received, at the business negotiation stage, we are further strengthening the proposal review framework to identify risks at an early stage, improve estimate accuracy and avoid accepting high-risk, low-profitability projects.」
Reviews of proposals and estimates before orders are received and progress-management reviews after orders are received were strengthened, and the balance of the provision for loss on orders also decreased from ¥102.076 million to ¥80.593 million. - FY2021-Q3MitigatedAnnual report
「In the system development business, development operations using development support tools performed well. Profitability also improved as a result of strengthening the review framework and enforcing rigorous quality control. On the other hand, subsidiary performance remained weak, partly because client companies were restraining investment.」
Improved profitability resulting from a strengthened review framework and rigorous quality control was reported, and the system development business's operating result turned from a ¥359.488 million loss in the same period of the previous year to a ¥4.917 million profit. Meanwhile, restrained investment by client companies and weak subsidiary performance remained issues. - FY2021-Q2MitigatedAnnual report
「In the systems development business, projects using development support tools progressed as planned, and the benefits of strengthening the review framework, an initiative begun in the previous fiscal year, gradually began to emerge. On the other hand, corporate investment restraint due to the impact of COVID-19 led to postponement of orders for expected projects, while the subsidiary's performance remained weak. As a result, revenue for the six months ended 30 September was ¥1,758.350 million, down 14.2% year on year, and the operating loss was ¥56.561 million, compared with an operating loss of ¥310.603 million in the same period of the previous year.」
The strengthened review framework began to produce results, and the operating loss in the system development business related to measures for loss-making projects narrowed from ¥310.603 million in the same period of the previous year to ¥56.561 million. Meanwhile, order delays and weak subsidiary performance continued. - FY2021-Q1MitigatedAnnual report
「In the systems development business, profit margins improved as unprofitable projects neared completion. On the other hand, some orders were postponed due to the impact of COVID-19, and the subsidiary's performance remained weak.」
The company reported improved profit margins as unprofitable projects progressed toward completion, indicating some progress in addressing the existing project risks. However, it also disclosed postponed orders for some projects and weak subsidiary performance, so it did not consider the overall risks to have been eliminated. - FY2020MitigatedAnnual report
「We will further strengthen initiatives to prevent unprofitable projects and pursue high-margin projects through quality improvements by reinforcing the review framework for new proposals and development progress.」
Although losses from unprofitable projects also arose in the current fiscal year, the provision for losses on orders decreased from ¥203.304 million to ¥102.076 million, and the company explicitly identified stronger cross-departmental reviews, proposal screening, and progress management as countermeasures. - FY2020-Q3WorsenedAnnual report
「In the systems development business, order intake stagnated because personnel were allocated to completing unprofitable projects. The business was also affected by a subsidiary leaving the scope of consolidation in the previous fiscal year. As a result, revenue for the nine months ended 31 December was ¥2,975.433 million, down 21.5% year on year, and the operating loss was ¥359.488 million, compared with operating income of ¥62.559 million in the same period of the previous year.」
Order intake stagnated because personnel were allocated to completing unprofitable projects, and the systems development business swung from operating income in the same period of the previous year to an operating loss of ¥359.488 million. - FY2020-Q2WorsenedAnnual report
「In the systems development business, we recorded an additional provision for losses on orders to bring unprofitable projects to completion. In addition, because personnel were focused on completing the development project, we were unable to secure sufficient staffing, resulting in stagnant order intake.」
The company recorded an additional provision for losses on orders as it brought unprofitable projects to completion, while order intake stagnated because personnel were allocated to completing those projects. The provision for losses on orders increased from ¥203.304 million at the end of the previous fiscal year to ¥458.614 million. - FY2020-Q1WorsenedAnnual report
「The systems development business was affected by a subsidiary leaving the scope of consolidation in February 2019. In addition, order intake stagnated due to the impact of delays from the original plan for a long-term contract development project.」
Delays in the plan for a long-term contract development project led to stagnant order intake, and the systems development business reported revenue of ¥925.171 million and an operating loss of ¥77.814 million. It swung to a loss from operating income of ¥2.818 million in the same period of the previous year, and the impact of quality and delivery-related risks on operating results continued. - FY2019MaterialisedAnnual report
「The transfer of shares in the consolidated subsidiary 株式会社アイデス had an impact, and delays from the original plan in a long-term contract development project resulted in the recognition of losses on orders and other items.」
Delays from the original plan actually occurred in a long-term contract development project, resulting in the recognition of losses on orders and other items. The provision for losses on orders was ¥203.304 million. - FY2018RestatedAnnual report
「In the systems development business, progress is managed for each project and care is taken to prevent delays in delivery. However, if quality or delivery problems arise due to defects or other issues, the Group's financial position and operating results may be affected.」
While managing progress for each project, the company continues to disclose the potential impact of quality and delivery problems caused by defects on operating results. - FY2017RestatedAnnual report
「In the systems development business, progress is managed for each project and care is taken to prevent delays in delivery. However, if quality or delivery problems arise due to defects or other issues, the Group's financial position and operating results may be affected.」
The company continues to disclose the potential effects of project quality and delivery problems on operating results, along with progress management for each project. - FY2016First statedAnnual report
「In the systems development business, progress is managed for each project and care is taken to prevent delays in delivery. However, if quality or delivery problems arise due to defects or other issues, the Group's financial position and operating results may be affected.」
While the company manages project progress, it indicates that quality and delivery problems caused by defects may affect operating results.