Sales stagnation and provisions for losses on orders received due to prolonged development periods
First written in FY2018-Q3. 9 of 20 entries say "Worsened", first in FY2018. Latest entry: 2026-10-08.
Silicon Studio Corp. moved to the "Worse" side of this theme in 2021, 2 years before the typical company in this theme (2023).
The whole theme swung hardest in 2024: 17 of 54 companies on the "Worse" side.
12 other companies' latest entry also says "Worsened".
- FY2026-H1MaterialisedAnnual report
「For the 3DCG video production project received in the previous fiscal year, we reassessed the cost estimate as the work progressed based on the assumptions initially envisaged. As a loss on the project is expected to arise, we recognized ¥75 million in provision expense for contract losses as cost of sales.」
A loss was expected to arise in the 3DCG video production project following a reassessment of the cost estimate, and ¥75 million in provision expense for contract losses was recognized. The detailed explanation also states that the project delay resulted in more work hours than expected and the loss of opportunities to win new projects. - FY2021WorsenedAnnual report
「In the second phase of a game asset development project undertaken by our subsidiary as a subcontractor, we completed the development work and delivered the project at the end of March. As the counterparty subsequently notified us of the termination of the contract, we recognized ¥75 million in provision expense for contract losses during the second-quarter consolidated accounting period, taking into account the recoverability of the amount. As a result, the full ¥166 million manufacturing cost attributable to the second phase of this project has been recognized as a provision.」
After receiving notice of contract termination following delivery of the subsidiary's development project, the full ¥166 million manufacturing cost for the second phase was recognized as a provision for contract losses. - FY2021-Q3WorsenedAnnual report
「In the second phase of a game asset development project undertaken by our subsidiary as a subcontractor, we completed the development work and delivered the project at the end of March. As the counterparty subsequently notified us of the termination of the contract, we recognized ¥75 million in provision expense for contract losses during the second-quarter consolidated accounting period, taking into account the recoverability of the amount. As a result, the full ¥166 million manufacturing cost attributable to the second phase of this project has been recognized as a provision.」
In the subsidiary's project, the counterparty notified it of contract termination after delivery. Following the additional recognition of ¥75 million, the full ¥166 million manufacturing cost for the second phase was provided for. The balance of the provision for contract losses increased from ¥91 million to ¥261 million. - FY2021-Q2WorsenedAnnual report
「As the counterparty subsequently notified us of the termination of the contract, we recognized an additional ¥75 million in provision expense for contract losses during the second-quarter accounting period, taking into account the recoverability of the amount.」
After the subsidiary's game asset development project had completed its second-phase work and delivery, the counterparty notified it of the termination of the contract, resulting in the recognition of an additional ¥75 million in provision expense for contract losses. - FY2021-Q1WorsenedAnnual report
「In the second phase of a game asset development project undertaken by our subsidiary as a subcontractor, we understand that, during the course of the project, the counterparty ordered the production of deliverables outside the scope of the contract. Although we have sought payment of the additional costs for this additional work, the counterparty has shown no indication of entering into negotiations. Taking into account the recoverability of the amount, we recognized ¥91 million in provision expense for contract losses.」
A project carried over from the previous fiscal year gave rise to issues involving production outside the scope of the contract and recovery of additional costs, resulting in the recognition of ¥91 million in provision expense for contract losses. - FY2020WorsenedAnnual report
「Profit declined due to the above revenue-decrease factors, as well as the recognition by a subsidiary of ¥65 million in provision expense for contract losses arising from an unprofitable project.」
In addition to the prolonged development period, an unprofitable project arose at a subsidiary, which resulted in the recognition of ¥65 million in provision expense for contract losses and a decline in profit. - FY2020-Q3MitigatedAnnual report
「Provision for contract losses 30 25」
The provision for contract losses decreased from ¥30 million at the end of the previous consolidated fiscal year to ¥25 million at the end of the third quarter, resulting in a slight reduction in the loss exposure associated with prolonged projects. - FY2020-Q2Slight increase in the provision for contract lossesAnnual report
「Change in the provision for contract losses (△ indicates a decrease) 9」
The provision for contract losses increased from ¥30 million at the end of the previous fiscal year to ¥39 million at the end of the second quarter. - FY2019MitigatedAnnual report
「This was due to factors increasing cash, including ¥72 million in profit before income taxes and other adjustments, ¥174 million in depreciation and amortization, and ¥267 million from a decrease in inventories, despite factors reducing cash, including a ¥174 million decrease in the provision for contract losses and a ¥115 million decrease in advances received.」
The provision for contract losses decreased from ¥205 million at the end of the previous fiscal year to ¥30 million at the end of the current fiscal year, reducing the loss exposure associated with prolonged projects. - FY2019-Q2MitigatedAnnual report
「This was mainly due to income of ¥48 million before income taxes and other adjustments and income of ¥194 million from a decrease in inventories, despite a ¥168 million decrease in the provision for contract losses.」
The provision for contract losses decreased from ¥205 million at the end of the previous fiscal year to ¥37 million, reflecting a reduction in the provision balance related to prolonged projects. - FY2018WorsenedAnnual report
「Revenue declined in some development projects due in part to longer development periods. We also recorded a provision for loss on contracts in progress for the increase in development costs for projects that had been extended.」
The prolonged development period led to a decline in full-year revenue, and the provision for contract losses increased from ¥27.932 million at the end of the previous fiscal year to ¥205.402 million. - FY2018-Q3MaterialisedAnnual report
「Revenue from some development projects struggled due in part to longer development periods, resulting in a decrease in revenue. We also recorded a provision for loss on contracts in progress for the increase in development costs for projects that had been extended.」
The extension of some development projects resulted in stagnant sales and lower revenue, and a provision for loss on contracts in progress was recorded to cover the increase in costs for the extended projects. The provision for loss on contracts in progress increased from ¥27.932 million at the end of the previous consolidated fiscal year to ¥196.425 million.