Worth reading
38Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
1122
Millions of yenWording
Conditional
How definitive the wording is.Contents of this document
Summary of Q&AFirst quarter of the fiscal year ending March 20274 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales1,122 Millions of yen+18.5%
Operating profit-40 Millions of yen
Gross Profit MarginThe year-on-year change is indicated, but the percentage figure is Not disclosed. Gross margin declined.
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Generally within expectationsKey points of the Q&AKey questions raised by investors at the briefing and the company's answers
- First-quarter assessment: Revenue increased, but the company posted an operating loss, making this a challenging result in terms of profitability.
- Growth drivers for the Systems Integration business: Increased demand for system development as implementation expands, and recognition of revenue from projects from prior fiscal years.
- Growth drivers for the AI-related business: KISS promotional activities, expansion of AI-related services provided by WEEL, and growing demand for generative AI and data utilization.
- Impact of price revisions: The impact is expected to be reflected progressively as contracts are renewed.
- Key factors in achieving the full-year forecast: Accumulation of subscription revenue, the impact of price revisions, and growth in the Systems Integration and AI-related businesses.
- Shareholder returns and growth investment: The company will continue growth investments in hiring, marketing and M&A, among other areas.
- Human resources strategy: Strengthening recruitment, reviewing the employee development structure, and bringing employees up to speed quickly.
New initiatives
- More active recruitment
- Review of the employee development structure
- Continuation and strengthening of marketing activities
- Active consideration of growth opportunities such as M&A
Segment results
- Systems Integration businessYear-on-Year Change in Revenue (%)45.1
- AI-Related BusinessYear-on-Year Change in Revenue (%)33.1
| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | First quarter of the fiscal year ending March 2027 |
| Net Sales | 1,122 Millions of yen (YoY +18.5%) |
| Operating profit | -40 Millions of yen |
| Gross Profit Margin | The year-on-year change is indicated, but the percentage figure is Not disclosed. Gross margin declined. |
| Self-assessment against the plan | Generally within expectations |
| Segment results | Segment Systems Integration business / Net Sales Not disclosed / Year-on-Year Change in Revenue (%) 45.1 / Profit Not disclosed, Segment AI-Related Business / Net Sales Not disclosed / Year-on-Year Change in Revenue (%) 33.1 / Profit Not disclosed |
| Key points of the Q&A | First-quarter assessment: Revenue increased, but the company posted an operating loss, making this a challenging result in terms of profitability., Growth drivers for the Systems Integration business: Increased demand for system development as implementation expands, and recognition of revenue from projects from prior fiscal years., Growth drivers for the AI-related business: KISS promotional activities, expansion of AI-related services provided by WEEL, and growing demand for generative AI and data utilization., Impact of price revisions: The impact is expected to be reflected progressively as contracts are renewed., Key factors in achieving the full-year forecast: Accumulation of subscription revenue, the impact of price revisions, and growth in the Systems Integration and AI-related businesses., Shareholder returns and growth investment: The company will continue growth investments in hiring, marketing and M&A, among other areas., Human resources strategy: Strengthening recruitment, reviewing the employee development structure, and bringing employees up to speed quickly. |
| New initiatives | More active recruitment, Review of the employee development structure, Continuation and strengthening of marketing activities, Active consideration of growth opportunities such as M&A |
Items this document does not state (22)
Ordinary incomeNet incomeOperating profit marginSelling, general and administrative expensesResults for the three months of the current quarterFull-year earnings forecastProgress against full-year forecastBreakdown of Factors Affecting the ChangeKey KPIsUnit price and quantity metricsNumber of stores and locationsNumber of employeesAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / Share
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The Software business posted higher revenue because it won large subscription projects and order volumes remained solid. However, the overall cost ratio rose and gross margin declined as sales increased in the higher-cost Systems Integration business.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.