Recognition of a provision for loss on orders
Silicon Studio Corp. (the Company)
A 3DCG video production project accepted in the previous fiscal year in the Development Promotion and Support Business
As production progressed, the Company reassessed its cost estimate based on the assumptions originally made and determined that a loss is expected to arise on the project.
¥79 million (cost of sales)
The first quarter of the fiscal year ending November 2026 (1 December 2025 to 28 February 2026)
The earnings forecast remains unchanged from the figures announced on 14 January 2026. The Company is currently reviewing the forecast, including other factors, and will promptly disclose any necessary revision.
Company response
The Company will strengthen its procedures for confirming contract terms, the scope of services to be provided and other matters before deciding whether to accept an order.
The Company will strengthen its procedures for confirming contract terms, the scope of services to be provided and other matters before deciding whether to accept an order. It will review the earnings forecast, including other factors, and promptly disclose any necessary revision.
The Company will promptly disclose any necessary revision to the earnings forecast.
| Item | Details |
|---|---|
| Event name | Recognition of a provision for loss on orders |
| Subject Entity | Silicon Studio Corp. (the Company) |
| Target Locations / Products | A 3DCG video production project accepted in the previous fiscal year in the Development Promotion and Support Business |
| Cause | As production progressed, the Company reassessed its cost estimate based on the assumptions originally made and determined that a loss is expected to arise on the project. |
| Amount of Impact on Business Performance | ¥79 million (cost of sales) |
| Accounting period in which recognized | The first quarter of the fiscal year ending November 2026 (1 December 2025 to 28 February 2026) |
| Impact on Earnings Forecast | The earnings forecast remains unchanged from the figures announced on 14 January 2026. The Company is currently reviewing the forecast, including other factors, and will promptly disclose any necessary revision. |
| Measures to prevent recurrence | The Company will strengthen its procedures for confirming contract terms, the scope of services to be provided and other matters before deciding whether to accept an order. |
| Outlook | The Company will strengthen its procedures for confirming contract terms, the scope of services to be provided and other matters before deciding whether to accept an order. It will review the earnings forecast, including other factors, and promptly disclose any necessary revision. |
| Planned follow-up disclosure | The Company will promptly disclose any necessary revision to the earnings forecast. |
Items this document does not state (15)
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.As production progressed, the Company reassessed its cost estimate based on the assumptions originally made and determined that a loss is expected to arise on the project. It is currently reviewing the impact, including other factors, as it is difficult to reasonably estimate the impact, including this amount, on the earnings forecast.