Improving Earnings Power and Profit Margins
First written in FY2016. 17 of 41 entries say "Advanced", first in FY2017-Q1. Latest entry: 2026-08-07.
Nextgen moved to the "Worse" side of this theme in 2019, 4 years before the typical company in this theme (2023).
11 other companies' latest entry also says "Cited as achieved".
- 2026-08-07Cited as achievedEarnings
「この結果、売上高は1,077,245千円となりました。損益面においては、人員強化に伴う人件費の増加などにより固定費は増加したものの、製品及びクラウドサービスの販売拡大による増収効果によりこれを吸収し、売上総利益は499,876千円、営業利益は194,914千円、経常利益は193,885千円、四半期純利益は154,716千円となりました。」
製品・クラウドサービスの販売拡大により、固定費増加を吸収して第1四半期の営業利益等を計上した実績として、収益力向上のスレッドを実績引用として更新する。 - FY2026AdvancedAnnual report
「As a result, gross profit was ¥1,577.995 million, up 11.3% from the previous consolidated fiscal year, operating profit was ¥328.297 million, up 25.2%, ordinary profit was ¥324.626 million, up 29.6%, and profit attributable to owners of the parent was ¥292.312 million, up 42.7%, with profit at every level substantially exceeding the previous consolidated fiscal year.」
Higher sales of core products and cloud services resulted in operating profit of ¥328.297 million and profit attributable to owners of the parent of ¥292.312 million, improving earnings from the previous fiscal year. - FY2026-H1AdvancedAnnual report
「As a result, gross profit was ¥767.640 million, up 21.2% year on year, operating profit was ¥190.668 million, up 78.3%, ordinary profit was ¥188.203 million, up 78.9%, and interim profit attributable to owners of the parent was ¥156.268 million, up 85.9%, with all profit items substantially exceeding those of the same interim period of the previous year.」
Higher sales and lower outsourcing costs resulted in operating profit of ¥190.668 million, ordinary profit of ¥188.203 million, and increases in all other profit items from the same interim period of the previous year, improving earnings power. - FY2025AdvancedAnnual report
「In terms of profit and loss, higher sales and lower outsourcing and other costs resulted in gross profit of ¥1,417.607 million, up 8.6% from the previous consolidated fiscal year, operating profit of ¥262.271 million, up 44.6%, ordinary profit of ¥250.401 million, up 44.1%, and profit attributable to owners of the parent of ¥204.883 million, up 22.7%.」
Higher sales and lower outsourcing costs resulted in operating profit of ¥262.271 million, ordinary profit of ¥250.401 million, and profit attributable to owners of the parent of ¥204.883 million, improving earnings power. - FY2025-H1AdvancedAnnual report
「The contribution from highly profitable projects and lower outsourcing costs resulted in gross profit of ¥633.208 million, up 5.4% year on year, operating profit of ¥106.949 million, up 297.1%, ordinary profit of ¥105.220 million, up 398.8%, and interim profit attributable to owners of the parent of ¥84.083 million, up 388.8%.」
The contribution from highly profitable projects and lower outsourcing costs increased operating profit from ¥26.933 million in the same interim period of the previous year to ¥106.949 million, improving margins and earnings power. - FY2024AdvancedAnnual report
「In terms of profit and loss, in addition to the positive effect of higher sales, lower software development investment, personnel and outsourcing costs, and rent following a layout change reduced fixed costs. Gross profit was ¥1,305.309 million, up 13.7% from the previous consolidated fiscal year, operating profit was ¥181.391 million, up 479.6%, ordinary profit was ¥173.759 million, up 629.7%, and profit attributable to owners of the parent was ¥166.920 million, compared with a net loss attributable to owners of the parent of ¥454.411 million in the previous consolidated fiscal year.」
Higher sales and lower development investment, personnel, outsourcing, and rent costs substantially improved operating and ordinary profit from the modest profits recorded in the previous year, while profit attributable to owners of the parent also turned positive. - FY2024-Q3AdvancedAnnual report
「In terms of profit and loss, in addition to the positive effect of higher sales, lower software development investment and lower fixed costs due to reduced personnel and software amortisation costs resulted in gross profit of ¥927.739 million, up 35.8% year on year, operating profit of ¥71.546 million, compared with an operating loss of ¥178.012 million, ordinary profit of ¥65.294 million, compared with an ordinary loss of ¥183.333 million, and quarterly profit attributable to owners of the parent of ¥51.941 million, compared with a quarterly net loss of ¥165.157 million.」
Higher sales and lower software development investment, personnel, and amortisation costs resulted in operating profit of ¥71.546 million, ordinary profit of ¥65.294 million, and quarterly net profit of ¥51.941 million, turning the Company from a loss in the same period of the previous year to a profit. - FY2024-Q2AdvancedAnnual report
「In terms of profit and loss, in addition to the positive effect of higher sales, lower software development investment and lower fixed costs due to reduced personnel and outsourcing costs resulted in gross profit of ¥600.622 million, up 37.7% year on year, operating profit of ¥26.933 million, compared with an operating loss of ¥155.763 million, ordinary profit of ¥21.094 million, compared with an ordinary loss of ¥160.609 million, and quarterly profit attributable to owners of the parent of ¥17.202 million, compared with a quarterly net loss of ¥142.060 million.」
Higher sales and lower software development investment, personnel, and outsourcing costs turned operating profit, ordinary profit, and quarterly profit attributable to owners of the parent from losses in the same period of the previous year to profits. - FY2024-Q1AdvancedAnnual report
「In terms of profit and loss, the increase in earnings accompanying higher sales resulted in gross profit of ¥255.840 million, up 24.9% year on year, an operating loss of ¥30.977 million, compared with ¥101.657 million, an ordinary loss of ¥31.903 million, compared with ¥104.813 million, and a quarterly net loss attributable to owners of the parent of ¥32.247 million, compared with ¥91.061 million.」
Gross profit increased 24.9% year on year, narrowing the operating, ordinary, and net loss deficits. Earnings improved, but losses were still recorded at each level. - FY2023-Q3WorsenedAnnual report
「In terms of profit and loss, although lower software amortisation and personnel costs due to a reduction in headcount, as well as reductions in communications, utilities, and other fixed costs, had a positive effect, gross profit was ¥682.967 million, down 4.7% year on year, the operating loss was ¥178.012 million, compared with ¥170.249 million, the ordinary loss was ¥183.333 million, compared with ¥174.223 million, and the quarterly net loss attributable to owners of the parent was ¥165.157 million, compared with ¥164.149 million.」
Although the Company reduced fixed costs, including amortisation, personnel, communications, and utilities costs, gross profit fell 4.7% year on year, while the operating and ordinary losses widened from the same period of the previous year. - FY2023-Q2WorsenedAnnual report
「In terms of profit and loss, although lower software amortisation, lower personnel costs due to a reduction in headcount, and reductions in communications, utilities, and other fixed costs mitigated the impact of lower earnings accompanying the decline in sales, gross profit was ¥436.034 million, down 6.3% year on year, the operating loss was ¥155.763 million, compared with ¥147.871 million, the ordinary loss was ¥160.609 million, compared with ¥150.633 million, and the quarterly net loss attributable to owners of the parent was ¥142.060 million, compared with ¥132.238 million.」
Although the Company reduced fixed costs, gross profit fell 6.3% year on year due to lower sales, and the operating loss, ordinary loss, and quarterly net loss attributable to owners of the parent all widened from the same period of the previous year. - FY2023-Q1WorsenedAnnual report
「In terms of profit and loss, although fixed costs declined due to lower software amortisation and other factors, the decline in sales reduced earnings. Gross profit was ¥204.870 million, down 15.8% year on year, the operating loss was ¥101.657 million, compared with ¥94.860 million, the ordinary loss was ¥104.813 million, compared with ¥97.133 million, and the quarterly net loss attributable to owners of the parent was ¥91.061 million, compared with ¥99.555 million.」
Lower sales reduced gross profit by 15.8% year on year, while the operating and ordinary losses widened from the same period of the previous year. The net loss, however, narrowed. - FY2022AdvancedAnnual report
「In terms of profit and loss, although sales of highly profitable internally developed licence products declined, lower fixed costs resulting from reduced software amortisation, lower personnel costs due to a reduction in headcount, and lower rent and other costs following the consolidation of subsidiary offices under work-style reforms resulted in gross profit of ¥1,364.998 million, down 1.2% from the previous consolidated fiscal year, operating profit of ¥188.605 million, compared with ¥12.771 million, ordinary profit of ¥181.071 million, compared with ¥3.914 million, and profit attributable to owners of the parent of ¥164.657 million, compared with a net loss attributable to owners of the parent of ¥174.317 million.」
Although sales declined, lower fixed costs, including amortisation, personnel, and rent, resulted in operating profit of ¥188.605 million and ordinary profit of ¥181.071 million, improving earnings from the modest profit recorded in the previous year. - FY2022-Q3WorsenedAnnual report
「In terms of profit and loss, although personnel costs declined due to a reduction in headcount and travel, rent, and other costs fell as a result of work-style reforms, gross profit was ¥716.955 million, down 19.4% year on year, due in part to lower revenue accompanying a decline in sales of internally developed licence products. The operating loss was ¥170.249 million, compared with ¥159.315 million, the ordinary loss was ¥174.223 million, compared with an operating loss of ¥162.624 million, and the quarterly net loss attributable to owners of the parent was ¥164.149 million, compared with ¥169.828 million.」
Although personnel, travel, rent, and other costs declined, gross profit fell 19.4% year on year due to lower sales of internally developed licence products, while the operating and ordinary losses widened from the same period of the previous year. - FY2022-Q2AdvancedAnnual report
「In terms of profit and loss, sales of highly profitable internally developed software and maintenance revenue increased, but a decline in inventories such as work in process related to implementation projects weighed on profit. Gross profit was ¥465.193 million, down 16.1% year on year. However, lower personnel costs due to a reduction in headcount and cost savings on travel, rent, and other expenses from work-style reforms resulted in an operating loss of ¥147.871 million, compared with ¥163.869 million, an ordinary loss of ¥150.633 million, compared with ¥167.253 million, and a quarterly net loss attributable to owners of the parent of ¥132.238 million, compared with ¥164.728 million.」
Although gross profit declined, lower personnel, travel, rent, and other costs narrowed the operating loss, ordinary loss, and quarterly net loss attributable to owners of the parent from the same period of the previous year. - FY2022-Q1AdvancedAnnual report
「In terms of profit and loss, although inventories such as work in process related to implementation projects declined, the substantial increase in highly profitable internally developed software sales resulted in gross profit of ¥243.437 million, up 147.7% year on year, an operating loss of ¥94.860 million, compared with ¥258.228 million, an ordinary loss of ¥97.133 million, compared with ¥258.440 million, and a quarterly net loss attributable to owners of the parent of ¥99.555 million, compared with ¥254.602 million.」
The increase in highly profitable internally developed software sales increased gross profit by 147.7% year on year and narrowed the operating, ordinary, and net loss deficits. However, losses were still recorded at each level. - FY2021AdvancedAnnual report
「The higher proportion of highly profitable internally developed software sales, lower outsourcing costs, mainly in product development and planning, and cost savings from work-style reforms resulted in gross profit of ¥1,380.957 million, up 44.9% from the previous consolidated fiscal year, operating profit of ¥12.771 million, compared with an operating loss of ¥574.073 million, and ordinary profit of ¥3.914 million, compared with an ordinary loss of ¥580.090 million.」
The higher proportion of internally developed software sales, lower outsourcing costs, and cost savings from work-style reforms turned operating profit and ordinary profit positive. However, impairment losses and other factors resulted in a net loss attributable to owners of the parent of ¥174.317 million. - FY2021-Q3AdvancedAnnual report
「In terms of profit and loss, the significantly higher proportion of highly profitable internally developed software sales and efforts to reduce fixed costs by cutting outsourcing costs, mainly in the product development and planning divisions, resulted in gross profit of ¥889.238 million, up 41.1% year on year. This absorbed the increase in personnel costs accompanying the growth in subsidiaries, resulting in an operating loss of ¥159.315 million, compared with ¥499.852 million, an ordinary loss of ¥162.624 million, compared with ¥502.114 million, and a quarterly net loss attributable to owners of the parent of ¥169.828 million, compared with ¥494.833 million. The deficit narrowed substantially at each level.」
The higher proportion of highly profitable internally developed software sales and lower outsourcing costs reduced fixed costs, increasing gross profit by 41.1% year on year and substantially narrowing the operating loss and other deficits. - FY2021-Q2AdvancedAnnual report
「In terms of profit and loss, the significantly higher proportion of highly profitable internally developed software sales and efforts to reduce fixed costs by cutting outsourcing costs, mainly in the product development and planning divisions, resulted in gross profit of ¥554.359 million, up 29.4% year on year. This absorbed the increase in personnel costs accompanying the growth in subsidiaries, resulting in an operating loss of ¥163.869 million, compared with ¥312.151 million, an ordinary loss of ¥167.253 million, compared with ¥313.017 million, and a quarterly net loss attributable to owners of the parent of ¥164.728 million, compared with ¥307.816 million. The deficit narrowed substantially at each level.」
The higher proportion of internally developed software sales and lower outsourcing costs reduced fixed costs, increasing gross profit by 29.4% year on year and narrowing the operating loss, ordinary loss, and net loss. However, losses were still recorded at each level. - FY2021-Q1WorsenedAnnual report
「In terms of profit and loss, the Company worked to reduce fixed costs by lowering depreciation and amortisation following the additional amortisation of software held for sale in the previous year, and by reducing outsourcing costs, mainly in the product development and planning divisions. However, this was insufficient to offset the decline in revenue accompanying lower sales. Gross profit was ¥98.274 million, down 44.4% year on year, the operating loss was ¥258.228 million, compared with ¥186.640 million, the ordinary loss was ¥258.440 million, compared with ¥187.396 million, and the quarterly net loss attributable to owners of the parent was ¥254.602 million, compared with ¥182.408 million.」
Although the Company reduced fixed costs by lowering depreciation and amortisation and outsourcing costs, it could not offset the decline in sales. Gross profit fell 44.4% year on year, and the operating loss, ordinary loss, and net loss all widened from the same period of the previous year. - FY2020WorsenedAnnual report
「In terms of profit and loss, substantial cost overruns on large projects, licence sales falling short of plan, higher outsourcing costs centred on the product development and planning divisions, substantial cost increases from upfront investment in new businesses, valuation losses on raw materials, and additional amortisation of software held for sale resulted in gross profit of ¥953.155 million, down 28.0% from the previous consolidated fiscal year, an operating loss of ¥574.073 million, compared with operating profit of ¥47.102 million, an ordinary loss of ¥580.090 million, compared with ordinary profit of ¥41.490 million, and a net loss attributable to owners of the parent of ¥543.139 million, compared with profit attributable to owners of the parent of ¥30.158 million.」
Although sales increased, cost overruns on large projects, licence sales falling short of plan, and higher outsourcing costs and upfront investment caused the Company to swing from operating profit to a substantial operating loss. - FY2020-Q3WorsenedAnnual report
「However, higher fixed costs, including personnel and other expenses associated with future business expansion and higher amortisation of internally developed software, resulted in gross profit of ¥630.311 million, up 31.3% year on year, an operating loss of ¥499.852 million, compared with ¥468.757 million, an ordinary loss of ¥502.114 million, compared with ¥472.753 million, and a quarterly net loss attributable to owners of the parent of ¥494.833 million, compared with ¥418.124 million.」
Although gross profit increased 31.3% year on year, the operating loss, ordinary loss, and quarterly net loss attributable to owners of the parent all widened due to higher fixed costs associated with business expansion. - FY2020-Q2WorsenedAnnual report
「In terms of profit and loss, although security assessment projects declined, a certain level of profit was secured through increased sales of subsidiary products. However, higher fixed costs, including personnel and other expenses associated with future business expansion and higher amortisation of internally developed software, resulted in gross profit of ¥428.272 million, up 23.6% year on year, an operating loss of ¥312.151 million, compared with ¥269.545 million, an ordinary loss of ¥313.017 million, compared with ¥272.431 million, and a quarterly net loss attributable to owners of the parent of ¥307.816 million, compared with ¥216.472 million.」
Although gross profit increased 23.6% year on year, the operating loss, ordinary loss, and quarterly net loss attributable to owners of the parent all widened due to higher personnel costs, other expenses, and software amortisation associated with business expansion. - FY2020-Q1WorsenedAnnual report
「In terms of profit and loss, lower revenue from a decline in security assessment projects, together with higher personnel and other expenses associated with future business expansion, including the establishment of the subsidiary, and higher amortisation of internally developed software, increased fixed costs. As a result, gross profit was ¥176.891 million, down 9.5% year on year, the operating loss was ¥186.640 million, compared with an operating loss of ¥121.264 million in the same quarter of the previous year, the ordinary loss was ¥187.396 million, compared with an ordinary loss of ¥122.697 million, and the quarterly net loss attributable to owners of the parent was ¥182.408 million, compared with a quarterly net loss attributable to owners of the parent of ¥88.233 million.」
Gross profit fell 9.5% year on year due to fewer security assessment projects and higher fixed costs, while the operating loss, ordinary loss, and quarterly net loss attributable to owners of the parent all widened from the same period of the previous year. - FY2019WorsenedAnnual report
「In terms of profit and loss, although sales of subsidiary products and maintenance revenue increased, higher fixed costs, including personnel and other expenses due to increased staffing following the establishment of the subsidiary, together with lower revenue from a decline in sales of certain licence products, resulted in gross profit of ¥1,324.524 million, up 5.1% from the previous consolidated fiscal year, operating profit of ¥47.102 million, down 64.2%, ordinary profit of ¥41.490 million, down 67.8%, and profit attributable to owners of the parent of ¥30.158 million, down 59.9%.」
Although gross profit increased, operating profit, ordinary profit, and net profit declined significantly due to higher fixed costs following the establishment of the subsidiary and lower sales of certain licence products. - FY2019-Q3Loss recorded in the third quarter of the first year of consolidationAnnual report
「In terms of profit and loss, although security projects, subsidiary product sales, and maintenance revenue increased, gross profit was ¥480.103 million, an operating loss was ¥468.757 million, an ordinary loss was ¥472.753 million, and a quarterly net loss attributable to owners of the parent was ¥418.124 million, due to lower revenue resulting from a decline in sales of certain licence products, as well as higher fixed costs, including personnel and other expenses due to increased staffing following the establishment of the subsidiary.」
For the nine months ended the third quarter of the first year of consolidation, the Company recorded an operating loss of ¥468.757 million, an ordinary loss of ¥472.753 million, and a quarterly net loss attributable to owners of the parent of ¥418.124 million. The factors cited were lower sales of licence products and higher fixed costs following the establishment of the subsidiary. - FY2019-Q2Loss recorded in the second quarter of the first year of consolidationAnnual report
「In terms of profit and loss, although security projects, subsidiary product sales, and maintenance revenue increased, higher fixed costs, including personnel and other expenses due to increased staffing following the establishment of the subsidiary, resulted in gross profit of ¥346.506 million, an operating loss of ¥269.545 million, an ordinary loss of ¥272.431 million, and a quarterly net loss attributable to owners of the parent of ¥216.472 million.」
For the six months ended the second quarter, the Company recorded an operating loss of ¥269.545 million, an ordinary loss of ¥272.431 million, and a quarterly net loss attributable to owners of the parent of ¥216.472 million. The losses were attributed to higher personnel and other expenses following the establishment of the subsidiary. As the Company explained that losses had been anticipated through the second quarter under the full-year plan, this was not assessed as a deterioration based on a simple comparison. - FY2019-Q1Loss recorded in the first quarter of the first year of consolidationAnnual report
「Although sales of internally developed software licences, security projects, and subsidiary products increased, higher fixed costs, including personnel and other expenses due to increased staffing following the establishment of the subsidiary, resulted in gross profit of ¥195.513 million, an operating loss of ¥121.264 million, an ordinary loss of ¥122.697 million, and a quarterly net loss attributable to owners of the parent of ¥88.233 million.」
In the first quarter of the first year of consolidation, the Company recorded an operating loss of ¥121.264 million and an ordinary loss of ¥122.697 million. The losses were attributed to higher fixed costs resulting from increased staffing and other expenses following the establishment of the subsidiary, although the Company also explained that a loss had been anticipated for the first quarter at the planning stage. Accordingly, this was not assessed as a deterioration based on a year-on-year comparison. - FY2018Ongoing challenges and first-year consolidated resultsAnnual report
「We recognize that expanding the scale of sales and improving margins in the Group's businesses are important challenges for future growth. To expand orders, we will seek to develop sales channels efficiently through collaboration with domestic and overseas sales partners. To improve margins, we will promote high-margin businesses by providing solutions using internally developed software and manufacturing and selling telecommunications equipment such as call recording and voice response systems. We will also work to strengthen our management control framework, continuously review costs, and improve the efficiency of our organisational structure and business activities.」
The Group continues to address challenges and measures to improve earnings power. Although consolidated operating profit was ¥131.561 million, higher fixed costs weighed on earnings. The results are described as those of the first year of consolidation, rather than being assessed simply as either achieving or failing to achieve the targets. - FY2018-Q3WorsenedAnnual report
「In terms of profit and loss, revenue increased due to higher sales of security assessment projects and other services, but fixed costs rose due to higher personnel and outsourcing costs in anticipation of future business expansion, including the opening of the Chubu sales office, and higher amortisation of in-house software development costs. Consequently, gross profit was ¥504.834 million, down 18.4% year on year; the operating loss was ¥317.384 million, compared with ¥65.570 million in the same quarter of the previous year; and the ordinary loss was ¥319.757 million, compared with ¥69.770 million.」
Despite higher sales, increased fixed costs from personnel, outsourcing and software amortisation expenses caused gross profit to decline 18.4% year on year, widening the operating and ordinary losses from the previous year. - FY2018-Q2WorsenedAnnual report
「In terms of profit and loss, sales of highly profitable in-house software licences increased, but fixed costs also rose due to higher personnel and outsourcing costs in anticipation of future business expansion, including the opening of the Chubu sales office, and higher amortisation of in-house software development costs. As a result, gross profit was ¥334.142 million, down 1.7% year on year; the operating loss was ¥219.109 million, compared with ¥113.420 million in the same quarter of the previous year; the ordinary loss was ¥220.344 million, compared with ¥115.904 million; and the net loss for the quarter was ¥161.380 million, compared with ¥85.613 million.」
Although sales of in-house software licences increased, higher fixed costs from the opening of locations, personnel, outsourcing and development amortisation expenses caused gross profit to decline 1.7% year on year, while the operating, ordinary and net losses all widened from the previous year. - FY2018-Q1WorsenedAnnual report
「In addition to lower sales of in-house licences, fixed costs increased due to higher personnel and outsourcing costs in anticipation of future business expansion, including the opening of the Chubu sales office, and higher amortisation of in-house software development costs. Consequently, gross profit was ¥93.148 million, down 55.2% year on year; the operating loss was ¥183.253 million, compared with ¥28.061 million in the same quarter of the previous year; the ordinary loss was ¥183.587 million, compared with ¥29.417 million; and the net loss for the quarter was ¥132.441 million, compared with ¥24.809 million.」
Lower sales of in-house licences and higher fixed costs from personnel, outsourcing and amortisation expenses caused gross profit to decline 55.2% year on year and widened the operating, ordinary and net losses. - FY2017Maintaining targets, but lower profitAnnual report
「In terms of profit and loss, profitability in the maintenance services business recovered as the number of construction support projects related to in-house software licences increased and efficiency improved through management efforts. However, fixed costs increased due to higher personnel and outsourcing costs in anticipation of business expansion and higher amortisation of in-house software development costs. Consequently, gross profit was ¥1,069.651 million, down 1.3% from the previous fiscal year; operating profit was ¥155.975 million, down 34.2%; ordinary profit was ¥150.920 million, down 34.9%; and net profit was ¥100.177 million, down 31.3%.」
While indicating a recovery in profitability through in-house software construction support and more efficient maintenance operations, gross profit, operating profit, ordinary profit and net profit all declined due to higher personnel, outsourcing and amortisation costs. - FY2017-Q3AdvancedAnnual report
「In terms of profit and loss, gross profit increased 10.9% year on year to ¥618.359 million, as the proportion of highly profitable in-house software licence sales increased and profitability in the maintenance services business recovered through lower maintenance costs resulting from management efforts. After absorbing higher SG&A expenses, including increased personnel costs in anticipation of business expansion, the operating loss was ¥65.570 million, compared with ¥90.088 million in the same quarter of the previous year; the ordinary loss was ¥69.770 million, compared with ¥93.843 million; and the net loss for the quarter was ¥58.137 million, compared with ¥99.479 million. The deficit narrowed in each case.」
Gross profit increased 10.9% year on year due to the higher proportion of in-house software licences and lower maintenance costs, further narrowing the operating, ordinary and net losses. However, the company continued to report a loss. - FY2017-Q2AdvancedAnnual report
「In terms of profit and loss, gross profit increased 30.4% year on year to ¥339.820 million, as the proportion of highly profitable in-house software licence sales increased and profitability in the maintenance business recovered following lower outsourcing costs for recurring maintenance projects. As a result, the increase in gross profit absorbed higher SG&A expenses, including increased personnel costs in anticipation of business expansion. The operating loss was ¥113.420 million, compared with ¥178.391 million in the same quarter of the previous year; the ordinary loss was ¥115.904 million, compared with ¥180.726 million; and the net loss for the quarter was ¥85.613 million, compared with ¥184.451 million. The deficit narrowed substantially in each case as profitability recovered.」
Gross profit increased 30.4% year on year due to the higher proportion of in-house software licences and lower outsourcing costs for maintenance projects, further narrowing the operating, ordinary and net losses. However, the company continued to report a loss. - FY2017-Q1AdvancedAnnual report
「Gross profit increased 53.6% year on year to ¥208.057 million, owing to a substantial increase in the proportion of highly profitable in-house software licence sales and an increase in capitalised software development costs from the second quarter onward to support business expansion. The increase in gross profit absorbed higher SG&A expenses, including increased personnel costs in anticipation of business expansion. As a result, the operating loss narrowed substantially to ¥28.061 million, compared with an operating loss of ¥96.633 million in the same quarter of the previous year; the ordinary loss narrowed to ¥29.417 million, compared with an ordinary loss of ¥97.852 million; and the net loss for the quarter narrowed to ¥24.809 million, compared with a net loss for the quarter of ¥98.837 million.」
Gross profit increased 53.6% year on year due in part to the higher proportion of highly profitable in-house software licences, and losses at each level narrowed. However, the company continued to report a quarterly loss. - FY2016First statedAnnual report
「We recognise that expanding sales and improving profit margins are important challenges for future business growth.」
Both sales scale and profit margins are positioned as important challenges for business growth.