Dependence on External Procurement and Leasing of Communications Equipment and Data Center Facilities
First written in FY2017. 3 of 10 entries say "Restated". Latest entry: 2026-08-07.
Internet Initiative Japan moved to the "Worse" side of this theme in 2019.
0 other companies' latest entry also says "Mitigated".
- 2026-08-07MitigatedFinancial results presentation
「資材調達は先行調達・価格転嫁等で最適運営中」
通信・設備等の外部調達に関して、先行調達と価格転嫁による対応が示された。 - 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 adverse impact on profit from the revised pricing structure of third-party software was largely eliminated by passing on the higher prices, improving the SI gross profit margin from 12.5% to 14.7%. Dependence on suppliers itself remains. - FY2025-H1MaterialisedAnnual 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.」
A revision to the pricing structure of software procured from third parties actually occurred, resulting in an adverse impact on profit of approximately ¥1.6 billion. Part of the impact was absorbed through passing on the higher costs to customers and other measures. - FY2024WorsenedAnnual report
「The group procures several types of equipment, including routers used in its network, and software used to provide services and operate its business, primarily from specific suppliers in the United States and depends on these third parties.」
In addition to telecommunications equipment, the company depends on specific U.S. suppliers for software used to operate its services and disclosed risks involving the procurement of substitutes due to inflation, foreign exchange movements, supply shortages and security concerns. - FY2023WorsenedAnnual report
「Restrictions on the supply of energy resources and other factors may cause electricity prices to surge. The company may be unable to negotiate with data center equipment suppliers over the allocation of the increased costs or pass them on to customers, or electricity supplies may become unstable or insufficient, resulting in additional costs for procuring electricity.」
In addition to the existing dependence on third parties for telecommunications equipment and facilities, semiconductor supply tightness and surging electricity prices and unstable power supplies were identified as specific risk factors. - FY2019WorsenedAnnual report
「The group procures several types of equipment, including routers used in its network, primarily from specific suppliers in the United States and depends on these third parties. Although there are currently no material management concerns regarding equipment and other items procured from third parties, it may become substantially difficult to use them, for example if security-related concerns are raised, requiring the procurement of substitute equipment and other items.」
Dependence on a small number of telecommunications equipment suppliers became a specific risk involving dependence on particular U.S. suppliers and the need to procure substitutes due to security concerns. - FY2019-Q1RestatedAnnual report
「The group depends on several telecommunications carriers for most of its internet backbone network procurement, NTT East and NTT West, electric power companies and their affiliates for access lines to customers, and NTT DOCOMO for mobile communication lines for its MVNO business.」
The company reconfirmed its dependence on telecommunications carriers, access-line operators and NTT DOCOMO for procurement of network and mobile lines. - FY2018RestatedAnnual report
「The group procures several types of telecommunications equipment, including routers used in its network, from a small number of suppliers and depends on these third parties. It also leases many of its data center and other facility systems and office equipment from third parties.」
The company reconfirmed its dependence on a small number of suppliers for telecommunications equipment and on third-party leases for data center and office facilities. - FY2018-Q2RestatedAnnual report
「The group depends on several telecommunications carriers for most of its internet backbone network procurement, NTT East and NTT West, electric power companies and their affiliates for access lines to customers, and NTT DOCOMO for mobile communication lines for its MVNO business.」
The company reconfirmed its dependence on telecommunications carriers, access-line operators and NTT DOCOMO for procurement of network and mobile lines. - FY2017First statedAnnual report
「The group procures several types of telecommunications equipment, including routers used in its network, from a small number of suppliers and depends on these third parties. It also leases many of its data center and other facility systems and office equipment from third parties.」
In addition to telecommunications lines, the company identified as a separate risk its dependence on a small number of suppliers for telecommunications equipment such as routers and on third-party leases for data center and office facilities, including the related supply and renewal risks.