Higher cost ratio due to increased work hours on long-term development projects
First written in FY2019-Q2. 2 of 5 entries say "Worsened", first in FY2019-Q3. Latest entry: FY2020-Q3.
The whole theme swung hardest in 2024: 20 of 64 companies on the "Worse" side.
31 other companies' latest entry also says "Mitigated".
- FY2020-Q3MitigatedAnnual report
「Because delivery and acceptance testing for system development projects commissioned through the first half progressed ahead of expectations, revenue for the nine-month period of the current fiscal year came in above the initial forecast, and the company also maintained profitability.」
The company explained that delivery and acceptance testing for long-term development projects progressed ahead of expectations, helping the commissioned business remain profitable. - FY2020-Q1MitigatedAnnual report
「In the commissioned business, performance remained solid against the full-year forecast because delivery and acceptance testing for commissioned development projects from major system integrators progressed as scheduled.」
While increased work hours and a higher cost ratio on long-term development projects occurred in the previous fiscal year, delivery and acceptance testing for projects from major system integrators progressed as scheduled, and the commissioned business remained solid. - FY2019WorsenedAnnual report
「Revenue in the Business Solutions business increased 29.8% year on year to ¥2,575.653 million as commissioned development projects for 株式会社電縁 and アイ・オーシステムインテグレーション株式会社 increased, but segment profit fell 70.5% year on year to ¥23.504 million due to the higher cost of sales ratio.」
Revenue increased as commissioned development projects grew, but segment profit fell 70.5% year on year due to the higher cost of sales ratio. - FY2019-Q3WorsenedAnnual report
「Meanwhile, as of the end of the third-quarter consolidated accounting period, the segment recorded profit of ¥24.832 million, down 74.5% year on year, because the cost of sales ratio increased as development work hours on long-term development projects rose.」
The increase in development work hours on long-term projects and the resulting rise in the cost of sales ratio continued, with segment profit in the Business Solutions business falling 74.5% year on year to ¥24.832 million. - FY2019-Q2MaterialisedAnnual report
「Meanwhile, as of the end of the second quarter, the segment recorded profit of ¥35.974 million, down 75.3% year on year, because the cost of sales ratio increased as development work hours on long-term development projects rose.」
Development work hours on long-term projects increased and the cost of sales ratio rose, resulting in a 75.3% year-on-year decline in segment profit in the Business Solutions business.