Uncertainty and investment burden before establishing the IoT business
First written in FY2016. 5 of 15 entries say "Mitigated", first in FY2020-Q2. Latest entry: FY2021.
No other company in this theme has enough history to compare yet.
- FY2021MitigatedAnnual report
「As a result, revenue from the IoT/AI solutions business was ¥442 million, up 30.2% year on year, due mainly to higher sales of AI2 and other factors, while the operating loss was ¥153 million, compared with an operating loss of ¥200 million in the same period of the previous year.」
Revenue from the IoT/AI solutions business increased, while its operating loss narrowed from ¥200 million in the previous year to ¥153 million. However, the operating deficit continued. - FY2021-Q1MitigatedAnnual report
「As a result, revenue from the IoT/AI solutions business was ¥143 million, up 38.9% year on year, mainly due to higher sales of AI2 and other factors, while operating profit was ¥18 million, compared with an operating loss of ¥46 million in the same period of the previous year, partly because of lower outsourcing expenses and other costs related to the fund.」
Revenue from the IoT/AI solutions business increased, and the business turned from an operating loss in the same period of the previous year to operating profit. The risk of losses from up-front investment before establishing the business has declined in the results for the current quarter. - FY2020MitigatedAnnual report
「As a result, revenue from the IoT/AI Solutions business rose 8.9% year on year to ¥394 million due to higher AI2 revenue, while operating loss improved somewhat to ¥191 million, compared with an operating loss of ¥237 million in the same period of the previous year.」
Revenue from the IoT/AI solutions business increased, while its operating loss narrowed from ¥237 million to ¥191 million. However, the operating deficit continued. - FY2020-Q3MitigatedAnnual report
「As a result, revenue from the IoT/AI solutions business was ¥284 million, up 6.9% year on year, while the operating loss was ¥155 million, compared with an operating loss of ¥161 million in the same period of the previous year.」
Revenue from the IoT/AI solutions business increased 6.9% year on year, while its operating loss narrowed from ¥161 million in the same period of the previous year to ¥155 million. However, it continued to record an operating loss. - FY2020-Q2MitigatedAnnual report
「As a result, revenue from the IoT/AI Solutions Business was ¥209 million, up 26.9% year on year, due to increased sales at AI2. The operating loss was ¥96 million, compared with an operating loss of ¥126 million in the same period of the previous year.」
Revenue from the IoT/AI solutions business increased 26.9% year on year, while its operating loss narrowed from ¥126 million in the same period of the previous year to ¥96 million. Operating loss nevertheless continued. - FY2020-Q1Narrowing of operating lossAnnual report
「As a result, revenue from the IoT/AI solutions business was ¥116 million, up 32.5% year on year, and operating loss was ¥44 million, compared with an operating loss of ¥46 million in the same period of the previous year.」
Revenue from the IoT/AI solutions business increased 32.5% year on year, while its operating loss narrowed from ¥46 million to ¥44 million. However, it continued to record an operating loss. - FY2019-Q3WorsenedAnnual report
「As a result, net sales in the IoT/AI Solutions business were ¥266 million, while operating loss was ¥161 million due to increases in recruitment costs, personnel expenses and other costs accompanying business expansion.」
The IoT/AI solutions business continued to record an operating loss of ¥161 million after IoT Square was transferred, due to increased recruitment, personnel and other costs associated with business expansion. The loss widened from the ¥126 million reported previously. - FY2019-Q2ReframedAnnual report
「As a result, net sales in the IoT/AI Solutions business amounted to ¥165 million, while the business posted an operating loss of ¥126 million due to increased recruitment, personnel and other expenses associated with business expansion.」
The explanation has shifted from the previous focus on IoT Square's development investment burden to identifying increased recruitment, personnel and other costs associated with expanding the IoT/AI solutions business as factors behind its losses. - FY2019-Q1MaterialisedAnnual report
「IoT Square Co., Ltd., established in October 2017 to develop services using IoT, was in a situation requiring management support, including additional investment, as its financial condition deteriorated due to upfront investment in system development and other expenses. In this situation, the parent company, having considered its future business strategy, determined that it needed to concentrate management resources on the new data center. It therefore decided to discontinue additional support for IoT Square Co., Ltd. and transfer all shares it owned to 株式会社インターネット総合研究所.」
The burden of IoT Square's up-front investment materialized as a deterioration in financial position and the need for additional support, leading to the decision to abandon further support and transfer all shares. - FY2018-Q3MaterialisedAnnual report
「As a result, revenue from the IoT/AI solutions business was ¥89 million, down 41.5% year on year, while the operating loss was ¥155 million, compared with an operating loss of ¥66 million in the same period of the previous year, because IoT Square's development investment was front-loaded.」
IoT Square's front-loaded development investment continued, and the operating loss of the IoT/AI solutions business widened from ¥66 million in the same period of the previous year to ¥155 million. - FY2018ReframedAnnual report
「Because IoT Square's development investment was front-loaded and the investment fund business was loss-making, operating loss was ¥298 million.」
While the burden of up-front investment in the IoT business continued to appear as losses, IoT Square was removed from the scope of consolidated subsidiaries in January 2019, shifting the focus of the burden from continuing the business to reviewing the business portfolio. - FY2018MaterialisedAnnual report
「IoT Square aimed to provide services such as security services for IoT devices sequentially by 2020, and for the time being, development investments such as infrastructure development were proceeding ahead of service revenues.」
Up-front investment in infrastructure development continued before the IoT business was established, and the IoT/AI solutions business recorded revenue of ¥603 million and an operating loss of ¥366 million. - FY2018-Q1MaterialisedAnnual report
「Operating loss was ¥33 million, compared with profit of ¥793 million in the same period of the previous year, ordinary loss was ¥34 million, compared with profit of ¥7.03 million, and the quarterly net loss attributable to owners of the parent was ¥24 million, compared with quarterly net profit attributable to owners of the parent of ¥157 million in the same period of the previous year, partly because of the up-front investment by IoT Square in its IoT business.」
The disclosure states that IoT Square's up-front investment burden materialized as an operating loss, ordinary loss and quarterly net loss attributable to owners of the parent. - FY2017RestatedAnnual report
「Although the IoT market is expected to expand, establishing our IoT business may take time, and unstable factors may arise before it becomes an established business. In addition, because we are investing funds in the business, including through capital investment, it may affect our operating results and financial position.」
The company continues to identify the time required to establish the IoT business, potential sources of instability and the investment burden as risks. - FY2016First statedAnnual report
「Our IoT business is still at the stage of developing its infrastructure, and it may take time to establish it as a business, while unstable factors may arise. In addition, because we are investing funds in the business, including through investment, it may affect our operating results and financial position.」
While positioning IoT as a growth area, the company identifies the time required to establish the business, potential sources of instability and the burden of investment funding as risks.