Passing on VMware product price revisions to customers
First written in FY2025-H1. 2 of 3 entries say "Mitigated", first in FY2026-H1. Latest entry: FY2026.
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- FY2026MitigatedAnnual report
「Gross profit from systems integration increased 20.9% year on year to ¥26,298 million (¥21,753 million in the same period of the previous year), reflecting the effect of higher revenue and the largely eliminated negative impact on profit from VMware's effective substantial price increases in the previous fiscal year through price pass-through. The gross margin was 16.1% (14.4% in the same period of the previous year).」
The negative impact on profit from VMware's revised pricing was largely eliminated through price pass-through, and the SI gross margin improved from 14.4% to 16.1%. - FY2026-H1MitigatedAnnual report
「The cost of sales for system integration increased 7.3% year on year to ¥62,558 million (¥58,286 million in the same period of the previous year), due in part to higher subcontracting-related expenses. SI gross profit increased 29.7% to ¥10,786 million (¥8,313 million in the same period of the previous year), reflecting higher revenue and the fact that the adverse impact on profit from the effective substantial price increase for VMware products in the previous year was largely eliminated by passing on the higher prices. The gross profit margin was 14.7% (12.5% in the same period of the previous year).」
The negative impact on profit from VMware's effective substantial price increases was largely eliminated through price pass-through, and the gross margin on SI sales rose from 12.5% to 14.7%. - FY2025-H1First statedAnnual report
「Operating profit for the six months ended 30 September declined due to an approximately ¥1.6 billion negative impact on profit from the revision of VMware product pricing. However, measures such as passing on the price increases progressed, and during the three months of the second quarter, the company absorbed approximately ¥400 million of the negative impact on profit from the revision (approximately ¥1.2 billion in the first quarter), returning to profit growth.」
The Company stated that it was taking measures including passing through the higher costs resulting from VMware's revised pricing structure and had absorbed the impact during the 3-month second quarter period.