Optimizing the business portfolio centered on telecommunications infrastructure

「ボ イ ス コ ミ ュ ニ ケ ー シ ョ ン 事 業 （千円） 636,000 ク ラ ウ ド D X 事 業 （千円） 441,245」

「Beginning this fiscal year, the company transferred the former carrier business into the cloud DX business as part of a reorganization, and has also revised the figures for the previous consolidated fiscal year based on this change in business segments.」

「Beginning this fiscal year, the group's businesses have been divided into two segments: the Voice Communications Business and the Cloud DX Business, which inherits much of the former Communications DX Business while reorganizing and expanding some business areas.」

「Business segment name: Voice Communications Business (¥ thousand) 2,523,298; Communications DX Business (¥ thousand) 1,097,496」

「Communications DX Business (¥ thousand) 511,939; increase of 17.1% from the same interim period of the previous year」

「Business segment name: Voice Communications Business (¥ thousand) 2,693,320; Communications DX Business (¥ thousand) 829,417」

「Revenue for the cumulative third quarter ended period was ¥2,382.207 million, an increase of 33.9% from the same period of the previous year.」

「An overview by business segment for the cumulative first quarter ended period is as follows.」

「With a view to enabling partner companies using the group's CPaaS to develop applications using APIs and other services provided by the company, the parties agreed to enter into a capital and business alliance agreement and issue new shares through a third-party allotment, with the aim of building a marketplace through which the applications developed can be used and sold among partner companies.」

「At a meeting of the board of directors held on 16 September 2022, the company resolved to conduct an absorption-type merger effective 1 November 2022, with the company as the surviving company and its consolidated subsidiary アクロスウェイ株式会社 as the absorbed company. It also executed the merger agreement on the same date and absorbed アクロスウェイ株式会社 effective 1 November 2022.」

「In addition, effective 1 April 2022, the company conducted an absorption-type merger in which the company was the surviving company and its consolidated subsidiary, 株式会社NextGenビジネスソリューションズ, was the absorbed company.」

「Because the VCLog business involves the import and sale and maintenance of overseas call-recording products and differs from the business areas that アクロスウェイ intends to pursue, the company decided to transfer the business in order to concentrate アクロスウェイ's management resources on its cloud communications services business.」

「The company entered into a business alliance with MATRIXX Software, which is based in Silicon Valley, North America, and developed a customer management and SIM management system for domestic mobile telecommunications operators using the 5G-compatible "MATRIXX Digital Commerce Platform," which incorporates proprietary technology for high-speed processing of large volumes of data. This enabled the company to provide a solution supporting MVNO business operations. The solution was ordered by a major information and communications services company.」

「During the cumulative second quarter ended period, license sales of the software IP-PBX "NX-C1000" and software SBC "NX-B5000" remained strong, supported in part by the broader shift toward remote work. The software was provided for enterprise IP telephony solutions offered by major telecommunications operators and for cloud-based extension telephone services using smartphones, and the company continued to receive orders for additional licenses. It also received a major order for additional licenses for an enterprise core system offered by a telecommunications operator affiliated with the power sector, the establishment of a new backup site as a BCP measure, and enhanced security monitoring, with implementation scheduled within the fiscal year.」

「In mobile data solutions, the company continued from the previous fiscal year to provide construction and technical support for the mobile core system (EPC) associated with the migration and renewal of an information and communications services company's MVNO platform, and introduced a core system for a mobile telecommunications operator's new services, completing acceptance. In addition, based on its previous consulting work for another information and communications services company concerning MVNO network equipment upgrades, the company won an order for an equipment upgrade project and supplied hardware products. It plans to proceed with software sales, construction, and technical support. It also became able to lend local 5G demonstration and proof-of-concept environments to customers and is pursuing consulting activities aimed at generating additional projects during the current fiscal year.」

「In communications systems and solutions, the transition from the public switched telephone network (PSTN) to IP networks is entering its final phase, scheduled for completion by 2025. Demand for IP interconnection is expected to drive the expansion of the software SBC "NX-B5000," through new projects and upgrades and functional enhancements to existing systems, primarily for major telecommunications operators.」

「・The company received and continues to fulfill an order from a major information and communications services company for the sale of and construction support for a 4G mobile core system (EPC) associated with the migration and renewal of its MVNO platform. It also received a new order to introduce and build a core system for the provision of new mobile services. As a result, revenue from communications systems and solutions for the cumulative third quarter ended period was ¥1,223.788 million, an increase of 112.6% from the same period of the previous year.」

「• Won and completed a consulting engagement from a major telecommunications construction company concerning the renewal of MVNO network equipment. • Won and is continuing to provide licenses for communications service control functions, platform enhancement and operational support related to the relocation and renewal of an MVNO platform for a major information and communications services company. • Won and delivered orders from a major telecommunications carrier for an NX-B5000 renewal project involving added functionality, as well as additional licenses to expand equipment capacity in response to increased traffic caused by the rise in remote working. • Began providing consulting services covering technical studies, verification and implementation of local 5G solutions in collaboration with 協和エクシオ株式会社 and promoted proposal activities. As a result, revenue from Telecommunications Systems and Solutions for the six-month cumulative period of the second quarter of the current consolidated fiscal year was ¥565.114 million, an increase of 59.1% year on year.」

「We began providing consulting services covering technical studies, verification and implementation of local 5G solutions in collaboration with 協和エクシオ株式会社 and are making proposals in response to inquiries. This is an area in which we can capitalize on the respective strengths of the two companies: our expertise in introducing overseas products with superior functionality and cost performance, supported by experience in local 5G demonstrations, and 協和エクシオ株式会社's extensive experience in building telecommunications lines and antennas. We will focus on this area going forward.」

「A service integrating "LA-6000" with voice recognition technology was launched within a major telecommunications group, and the first project was won. We are continuing sales activities, inquiries remain strong and further expansion is expected. We also won a large project that will serve as the foundation for broadening our business domain, which had previously centered on fixed voice networks. We are proposing to telecommunications carriers products required for IP interconnection beginning in 2021 in connection with PSTN migration.」

「We won a large project that will serve as the foundation for broadening our business domain, which had previously centered on fixed voice networks. We are proposing to telecommunications carriers products required for IP interconnection beginning in 2021 in connection with PSTN migration. We have also begun paid trials at a major telecommunications carrier and aim to win future commercial deployment projects.」

「The Company sold a mobile network virtualization solution to a major mobile telecommunications carrier in preparation for full-scale 5G operations.」

「By concentrating and restructuring the enterprise business under the subsidiary NxG-BS to acquire cloud PBX services for major telecommunications carriers and strengthen the enterprise business, sales, including increased sales of VOICEMARK to major enterprises, totaled ¥3,190.405 million, an increase of 11.2% from the previous consolidated fiscal year.」

「LignApps' CPaaS was adopted as the platform for a cloud service provided by a major telecommunications systems company. As subscription-based services expand, demand for CPaaS is expected to increase as a platform that can easily integrate with various communications services.」

「During the second quarter accounting period, 株式会社LignApps, specializing in the CPaaS business, was newly established on 3 August 2018.」

「Sales of software SBCs remained firm. License sales progressed to support a functional enhancement migration from existing SBCs at a major telecommunications carrier. As network function virtualization (NFV) gained momentum, we also won a project at a major telecommunications carrier to support virtualization using the software SBC "NX-B5000" and are proceeding with development toward commercialization.」

「Products of the subsidiary 株式会社NextGenビジネスソリューションズ, whose business was acquired from 株式会社ｎｅｉｘ, which had provided business revitalization support, were delivered following the receipt of a large order for a VOIP gateway. We also received and delivered an order for "VOTEX-IVR," a solution that adds voice recognition to an IVR (interactive voice response) system. Inquiries for the solution remain firm, and we aim to significantly expand sales going forward.」

「As we held repeated discussions regarding collaboration with neix, we reconfirmed that neix's legacy technologies, both analog and digital, and the related market would continue to exist for a certain period despite changes in the market environment resulting from technological advances such as the shift to IP and cloud computing. We determined that the ability to provide customers with a broader range of solutions would increase added value and lead to expanded business opportunities.」

「• At a customer that had already introduced our SBC, we completed a large additional license sale to diversify risk and ensure service continuity in emergencies, as traffic increased steadily and the system became more critical. • As demand for monitoring increased with the expansion of IP networks, we won a large project for the network forensics product NX-C6500, which detects security threats and analyzes incidents. As a result, revenue from Telecommunications Systems and Solutions for the six-month cumulative period of the second quarter was ¥396.249 million, an increase of 13.0% year on year.」

「• Added call recording products for an existing major financial institution customer. • Added a VoIP solution for the call center of a major non-life insurance company. • As demand increased for the introduction of call recording equipment to strengthen corporate compliance, demand also grew for the transcription and use of call recording data through voice recognition technology. To meet this demand, we began providing call recording, voice-data transcription and operational services using a voice recognition engine as a monthly BPO (business process outsourcing: the outsourcing of a company's business processes to an external company) service. We received an order from a major securities company and began providing the service. • Newly integrated and systematized enterprise VoIP products and solutions under the brand name "VOICEMARK (ヴォイスマーク)." By proposing a complete range of products and solutions to customers, we expect to increase sales going forward. As a result, revenue from Enterprise Solutions for the three-month cumulative period of the first quarter of the current fiscal year was ¥52.958 million, an increase of 200.4% year on year.」

「〔Enterprise Solutions〕 We provide companies other than telecommunications carriers and government agencies with telecommunications system license sales, systems integration, peripheral applications, and network security consulting services.」

「• Won a large development and implementation support project for a customer purchasing an IP radio solution, and completed the introduction and acceptance testing of a new in-house licensed product. As a result, revenue from Enterprise Solutions for the nine-month cumulative period of the third quarter of the current fiscal year was ¥386.354 million, an increase of 145.9% year on year.」

「• Introduced new call recording products to existing customers, including major electrical equipment manufacturers, major financial institutions, major non-life insurance companies and government agencies. • Introduced "VoISplus" and "LA-6000," new software-based integrated call recording solutions, to new customers including major staffing companies. • Won a technology consulting engagement to provide a new service using SIP. • Won a development and implementation support engagement for a customer purchasing an IP radio solution. As a result, revenue from Enterprise Solutions for the six-month cumulative period of the second quarter of the current fiscal year was ¥118.080 million, an increase of 28.0% year on year.」

「Leveraging the technologies and experience accumulated through their development, we provide solutions for business use, primarily to major customers with call centers or nationwide branch networks, including IP-PBX systems, gateways for connecting to telecommunications carriers, call recording, voice recognition and unified communications integration.」

「This market is where the technologies, expertise and experience cultivated by the Company can most effectively demonstrate their competitive advantage. While making this business our core, we will leverage the expertise gained here in downstream solutions and services, primarily for enterprises, and proceed with optimizing our business portfolio.」