Review of the Sales Plan for SI Object Browser Designer and Impairment Loss
First written in FY2022-Q2. 2 of 4 entries say "Materialised", first in FY2022-Q2. Latest entry: FY2023-Q3.
System Integrator Corp. moved to the "Worse" side of this theme in 2023, 3 years before the typical company in this theme (2026).
3 other companies' latest entry also says "Materialised".
- FY2023-Q3MaterialisedAnnual report
「The application design tool "SI Object Browser Designer" had been sold as a cloud service since June 2019. However, after considering various indicators, including the prospects for monetization, market potential, and the difficulty of expanding the business, we decided to withdraw from the business. The impact on results will be minor.」
Following the revision of the sales plan and recognition of the impairment loss for SI Object Browser Designer, the decision to withdraw from the business has made concerns regarding monetization and market potential concrete in the form of a business withdrawal. - FY2023-Q2Explicit identification of the need to improve the contract renewal rateAnnual report
「The product was launched as a cloud service in June 2019 and is marketed as a tool that significantly improves the productivity of design work. However, enhancing its functionality to improve the contract renewal rate remains an issue.」
For SI Object Browser Designer, enhancing functionality to improve the contract renewal rate is explicitly identified as an issue following the sales plan revision and impairment loss. - FY2022-Q3RestatedAnnual report
「In August 2021, we decided to make additional product development investments and revise the sales plan for this product. As a result, we recognized an impairment loss of ¥35.803 million on existing software assets.」
For SI Object Browser Designer, the additional development investment, sales plan revision and recognition of the ¥35.803 million impairment loss are reiterated. - FY2022-Q2MaterialisedAnnual report
「To accelerate further growth, we decided to make additional product development investments and revised the sales plan for this product. As a result, we recognized an impairment loss of ¥35.803 million on existing software assets.」
For SI Object Browser Designer, the revised sales plan meant that the initially anticipated revenue could no longer be expected, resulting in an impairment charge of ¥35.803 million on software assets. The recoverable amount was assessed at zero because future cash flows are expected to be negative.