Failure to win new middleware licenses and delays in large-scale prototype development projects
First written in FY2016-Q2. 8 of 18 entries say "Worsened", first in FY2016-Q3. Latest entry: FY2023.
Silicon Studio Corp. moved to the "Worse" side of this theme in 2016, 3 years before the typical company in this theme (2019).
The whole theme swung hardest in 2019: 5 of 9 companies on the "Worse" side.
5 other companies' latest entry also says "Restated".
- FY2023RestatedAnnual report
「Revenue from middleware license sales declined because revenue from a large license agreement recorded in the previous fiscal year was recognized in full.」
The risk of a decline following the recognition of large license agreements, dependent on the timing and size of recognition, has also emerged for the full fiscal year. - FY2023-Q3WorsenedAnnual report
「Although revenue from contracted development increased, it did not fully offset the revenue from the large-scale license agreement closed in the same period of the previous year, resulting in a decline in middleware revenue.」
The volatility of middleware sales, which depends on the timing and size of large license agreement closings, has continued to appear as lower revenue due to the reaction to a large contract in the same period of the previous year. - FY2023-Q1WorsenedAnnual report
「Middleware revenue declined because the license agreement for our own software was postponed.」
The previously identified risk of delays in license agreements and closings has again materialized as lower revenue due to the deferral of contracts for the company's software. Contract deferrals have in fact occurred. - FY2022-Q3MitigatedAnnual report
「Revenue from middleware license sales increased substantially because revenue from a large-scale license agreement closed during the third quarter was recognized in full during the third-quarter accounting period.」
Sales increased substantially as large license agreements were closed and the related revenue was recognized in full, mitigating the previously identified sales risk arising from prolonged negotiations and delayed closings. - FY2021MitigatedAnnual report
「Revenue from middleware license sales during the fiscal year increased, helped by the closing of a project whose timing had shifted into the fourth quarter.」
Deals affected by period slippage were closed in the fourth quarter, partially mitigating the previously identified risk of sales delays and failure to secure orders through increased revenue. - FY2021-Q1RestatedAnnual report
「Revenue from middleware license sales during the nine months ended the first quarter declined due to the impact of prolonged evaluation periods and other factors.」
The decline in middleware sales revenue attributable to longer customer evaluation periods has been reconfirmed. - FY2020RestatedAnnual report
「Revenue from middleware license sales in the consolidated fiscal year declined due to the impact of longer customer evaluation periods and other factors.」
The decline in middleware license sales revenue caused by longer customer evaluation periods has been reconfirmed on an annual basis. - FY2020-Q2WorsenedAnnual report
「Revenue from middleware license sales during the six months ended the second quarter declined because customers required more time for evaluations due to the impact of COVID-19 and other factors.」
The risk of period slippage and failure to achieve sales targets caused by prolonged customer evaluations has continued to materialize as a decline in revenue associated with the impact of COVID-19. - FY2019WorsenedAnnual report
「During the fiscal year, revenue from middleware license sales fell short of the initial plan because a project for an overseas game developer that was expected to be contracted during the fourth quarter was cancelled, while another project took longer than expected to reach contract signing, resulting in a timing shift and other factors.」
The risk of failing to win middleware sales and of timing shifts materialized as the cancellation of an overseas project and failure to meet the full-year plan. - FY2019-Q2WorsenedAnnual report
「During the six months ended the second quarter, revenue from middleware license sales declined because prolonged customer evaluations and other factors caused the timing of revenue recognition to shift beyond the period.」
The longstanding risk of prolonged projects and timing shifts materialized again as a decline in middleware sales revenue due to prolonged customer evaluations. - FY2018RestatedAnnual report
「During the fiscal year, middleware license sales performed strongly and exceeded plan, helped by the acquisition of large-scale projects.」
The annual results continue to exceed plan due to the acquisition of large-scale projects, reversing the previous shortfall in the sales plan caused by prolonged projects and other factors. - FY2018-Q3MitigatedAnnual report
「During the nine months ended the third quarter, middleware license sales performed strongly and exceeded plan, helped by the acquisition of large-scale projects.」
Against the previous shortfall in the license sales plan caused by prolonged projects and other factors, cumulative sales for the quarter exceeded plan due to the acquisition of large-scale projects. - FY2018-Q2RestatedAnnual report
「Middleware license sales fell below plan due to prolonged projects and other factors.」
The company continues to disclose that middleware license sales are falling short of plan due to prolonged projects and other factors. - FY2018-Q1RestatedAnnual report
「Middleware license sales fell below the initial expectations due to timing shifts caused by prolonged projects and other factors.」
For middleware license sales, timing shifts caused by prolonged projects and the resulting shortfall against initial expectations continue to occur. - FY2017WorsenedAnnual report
「License sales fell substantially short of the initial plan due to longer development periods, demand for contracted development projects failing to reach the stage of closing, intensifying competition from competing products with lower implementation costs, and shrinking project sizes.」
The shortfall in the plan for new license sales continued through the full year, with prolonged projects, demand failing to result in closed deals, competition from lower-cost products, and shrinking project sizes explicitly identified as factors. - FY2016WorsenedAnnual report
「License sales fell substantially short of the initial plan due to prolonged projects, demand for contracted development projects failing to materialize, intensifying competition from competing products with lower implementation costs, and shrinking project sizes.」
Factors behind the shortfall in new license sales continued, with prolonged projects, demand failing to materialize, competition from lower-cost competing products, and shrinking project sizes affecting full-year performance. - FY2016-Q3WorsenedAnnual report
「Although existing middleware and maintenance support contracts continued, expected sales of new middleware licenses did not result in orders due to longer project development periods and intensifying competition from competing products with lower implementation costs.」
The failure to win new license orders continued, with the specific factors of longer development periods and intensifying competition from lower-cost competing products emerging. Large-scale projects outside the entertainment sector also failed to result in orders and remained below plan. - FY2016-Q2First statedAnnual report
「New middleware license sales initially expected did not result in orders, while some large-scale prototype development projects were delayed following a review of their scope.」
The company stated that the expected shortfall in orders and project delays actually occurred this quarter.