Risk of recovering development investment in the next-generation ASP product
First written in FY2016. 4 of 20 entries say "Restated". Latest entry: 2026-05-08.
MKSystem moved to the "Worse" side of this theme in 2024, the same year as the typical company in this theme.
The whole theme swung hardest in 2017: 8 of 19 companies on the "Worse" side.
12 other companies' latest entry also says "Mitigated".
- 2026-05-08MitigatedRevisions to earnings forecasts
「利益面につきましては、売上原価における外注加工費及びIDC関連費用、並びに販売費及び一般管理費における業務委託費の圧縮が進んだことにより、売上総利益率及び営業利益率が改善し、営業利益及び経常利益は前回発表予想を上回りました。」
IDC関連費用を含むコスト圧縮が進み、従来のクラウド基盤運用コスト負担に関するリスクが当期の利益面では低減したことを示している。リスクの解消までは示していない。 - FY2025WorsenedAnnual report
「Although the filing company, which has reported operating losses in consecutive periods and identified indicators of impairment, did not record an impairment loss for the current consolidated fiscal year, this has been disclosed as a matter requiring disclosure in view of the risk of a material impact on the consolidated financial statements for the following consolidated fiscal year.」
The company identified indicators of impairment for property, plant and equipment due to continuing operating losses, but did not record an impairment loss in the current fiscal year. It explicitly states that an impairment loss could arise if future performance falls short. - FY2025-H1MaterialisedAnnual report
「However, operating costs for the cloud service built in the previous fiscal year have increased because of delays in system development and the yen's depreciation. We therefore need to continue focusing on measures to reduce costs.」
The increase in operating costs for the new cloud service continued, with delays in system development and the yen's depreciation identified as the causes. - FY2024MaterialisedAnnual report
「In addition to the decrease in net sales for the reasons described above, cost of sales increased because operating costs for the cloud service built as a new system platform were higher than expected. As a result, both gross profit and operating profit declined substantially from the previous fiscal year.」
Operating costs for the new cloud platform exceeded expectations during the full fiscal year, reducing profit through the increase in cost of sales. - FY2024-Q3MaterialisedAnnual report
「In addition to the decrease in net sales for the reasons described above, cost of sales increased because operating costs for the cloud service built as a new system platform were higher than expected. As a result, both gross profit and operating profit declined substantially from the same quarter of the previous year.」
Operating costs for the new cloud platform continued to exceed expectations, substantially reducing gross profit and operating profit through the increase in cost of sales. - FY2024-Q2New cloud platform operating costs exceeded expectationsAnnual report
「In addition to the decrease in net sales for the reasons described above, cost of sales increased because operating costs for the cloud service built as a new system platform were higher than expected. As a result, both gross profit and operating profit declined substantially from the same quarter of the previous year.」
Operating costs for the new cloud platform exceeded expectations, reducing profit through the increase in cost of sales. - FY2023-Q3Decrease in depreciation and amortizationAnnual report
「Depreciation and amortization ¥277.082 million ¥256.166 million」
Depreciation and amortization for the cumulative third quarter amounted to ¥256.166 million, down from ¥277.082 million in the same quarter of the previous year. - FY2023-Q1Decrease in software amortizationAnnual report
「Software amortization decreased because amortization of certain major products was completed during the previous consolidated fiscal year.」
It is stated that software amortization decreased because amortization of certain major products was completed. - FY2022Continued increase in depreciation expenseAnnual report
「The main factors contributing to the increase were profit before income taxes of ¥129.544 million, depreciation and amortization of ¥376.903 million, and goodwill amortization of ¥38.861 million.」
Depreciation and amortization increased from ¥323.506 million in the previous fiscal year to ¥376.903 million, and depreciation and amortization expenses associated with development and capital investment remain elevated. - FY2022-Q3Continued increase in depreciation expenseAnnual report
「Depreciation and amortization ¥237.213 million ¥277.082 million」
Depreciation and amortization for the cumulative third quarter amounted to ¥277.082 million, up from ¥237.213 million in the same quarter of the previous year. Depreciation and amortization expenses associated with development and capital investment remain elevated. - FY2022-Q1Continued increase in depreciation expenseAnnual report
「Depreciation and amortization expense ¥74.500 million ¥84.747 million」
Depreciation and amortization for the cumulative first quarter amounted to ¥84.747 million, up from ¥74.500 million in the same quarter of the previous year. Depreciation and amortization expenses associated with development and capital investment remain elevated. - FY2021Continued increase in depreciationAnnual report
「Cash provided by operating activities was ¥340.184 million. The main factors contributing to the increase were profit before income taxes of ¥217.033 million, depreciation and amortization expense of ¥323.506 million, and goodwill amortization of ¥38.861 million」
Depreciation and amortization expense was ¥323.506 million, indicating that the amortization burden associated with investment in cloud services and other areas continued throughout the fiscal year. - FY2021-Q3Continued increase in depreciationAnnual report
「Depreciation and amortization expense ¥197.850 million ¥237.213 million」
Depreciation and amortization expense for the cumulative third quarter period was ¥237.213 million, up from ¥197.850 million in the same period of the previous year. The figures show that the amortization burden associated with new products and business succession remains ongoing. - FY2020Continued increase in amortization expense associated with new product releasesAnnual report
「Meanwhile, cost of sales increased from the previous fiscal year, mainly due to an increase in depreciation and amortization expense associated with the release of new products.」
The increase in depreciation and amortization expense associated with new product releases is explicitly cited as a factor behind the increase in cost of sales. - FY2020-Q3RestatedAnnual report
「Meanwhile, cost of sales increased from the same quarter of the previous year, mainly due to an increase in depreciation and amortization expense associated with the release of new products.」
The increase in depreciation and amortization expense associated with new product releases continues to be cited as a factor behind the increase in cost of sales. - FY2020-Q2Increase in amortization expense associated with new product releasesAnnual report
「Meanwhile, cost of sales increased from the same quarter of the previous year, mainly due to an increase in depreciation and amortization expense associated with the release of new products.」
The increase in depreciation and amortization expense associated with new product releases is explicitly cited as a factor behind the increase in cost of sales. - FY2019-Q1RestatedAnnual report
「However, because cloud service revenue builds gradually by its nature, investment and costs related to service design, development and sales continue to precede revenue generation.」
The company continues to disclose the situation in which investment and costs for design, development and sales precede the gradual buildup of cloud service revenue. - FY2018RestatedAnnual report
「Development costs will be capitalized as software and recognized over several years after release as software amortization expense. However, if development investment is greater than expected or the corresponding system usage fees do not increase as planned, this could affect our group’s business performance and financial position.」
The company continues to disclose the possibility of an impact from cloud system development investment exceeding budget or usage fees falling short of plan. - FY2017RestatedAnnual report
「Development costs for systems provided through our group’s cloud services will be capitalized as software and recognized over several years after release as software amortization expense. However, if development investment is greater than expected or the corresponding system usage fees do not increase as planned, this could affect our group’s business performance and financial position.」
The risk of cloud system development investment exceeding budget and usage fees falling short of plan continues to be disclosed as a group-wide risk. - FY2016First statedAnnual report
「Development costs for this system will be capitalized as software and recognized over several years after release as software amortization expense. However, if development investment is greater than expected or the corresponding system usage fees do not increase as planned, this could affect our business performance and financial position.」
Regarding development investment in the next-generation version using C#, the company identifies the potential impact of cost overruns and failure to achieve the planned increase in usage fees.