Worth reading
73In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
-66
¥ million (year-on-year change in operating income)Wording
Conditional
How definitive the wording is.Contents of this document
Financial results presentationFirst quarter of the fiscal year ending June 202714 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales6,241 Millions of yen-0.1%
Operating profit644 Millions of yen-9.4%
Ordinary income653 Millions of yen-8.4%
Net income380 Millions of yen-18.7%
Selling, general and administrative expenses897 Millions of yen
Gross Profit Margin
Rate24.7
Year-on-year change (points)0.8
Operating profit margin
Rate10.3
Year-on-year change (points)-1.1
Results for the three months of the current quarter
Net Sales6,241 Millions of yen
Operating profit644 Millions of yen
Ordinary income653 Millions of yen
Profit attributable to owners of parent for the quarter380 Millions of yen
Full-year earnings forecast
Net Sales
26,700 Millions of yen
Operating profit
3,200 Millions of yen
Ordinary income
3,200 Millions of yen
Profit attributable to owners of the parent
2,190 Millions of yen
Progress against full-year forecast 通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales23.4 %
Operating profit20.1 %
First-half revenue48 %
First-Half Operating Profit43.7 %
By business
Business Solutions revenue24.4
Embedded Solutions Net Sales22
Product Solutions Net Sales21.1
System Sales Net Sales23.9
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progress against the earnings forecast is broadly in line with the initial assumptionsBreakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Net Sales
Business solutions243 Millions of yen
Embedded Solutions-151 Millions of yen
Product Solutions-79 Millions of yen
Systems Sales-16 Millions of yen
Total change-3 Millions of yen
Operating profit
Gross profit51 Millions of yen
Investment spending-69 Millions of yen
Personnel Expenses-19 Millions of yen
Advertising expenses-10 Millions of yen
Office supplies-17 Millions of yen
Rent-9 Millions of yen
Fees paid-9 Millions of yen
Other expenses16 Millions of yen
Strategic investment expenses109
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Numerical assumptions for foreign exchange rates, raw material prices, interest rates and other factors are not disclosed. The outlook assumes budget adjustments to automotive-related software investment and continued investment in the use of AI and the development of strategic products.New initiatives
- Participation in the QNX Partner Program and optimization of RezOT for the QNX environment
- Prototype development of an AI agent that converts the tacit knowledge of skilled personnel into explicit knowledge
- Proof of concept for an on-premises data-masking tool targeted for release during the current fiscal year
- Establish a Business Development Promotion Department under the Product Solutions Division
- Nationwide rollout of regional revitalization × AI/digital transformation solutions
Key KPIsA metric the company considers important as a management benchmark.
- Gross profit1,541 Millions of yenYear on year against the same period last year+3.4%
- Gross profit margin24.7 %Year-on-year change (points)0.8
- SG&A expenses897 Millions of yenYear on year against the same period last year+15.1%
- SG&A ratio14.4 %Year-on-year change (points)1.9
- Operating margin10.3 %Year-on-year change (points)-1.1
- Equity ratio74.7 %
Segment results
- Software Development businessNet Sales6,002Revenue UnitMillions of yenYear-on-year revenue growth0.2Segment profit613Profit UnitMillions of yenYear-on-Year Change in Profit-8.5
- Business Solutions BusinessNet Sales3,664Year on year against the same period last year+7.1%
- Embedded Solutions businessNet Sales1,851Year on year against the same period last year-7.6%
- Product Solutions businessNet Sales486Year on year against the same period last year-13.9%
- Systems Sales BusinessNet Sales239Revenue UnitMillions of yenYear-on-year revenue growth-6.5Segment profit30Profit UnitMillions of yenYear-on-Year Change in Profit-23.6
Medium-term management plan targets
Fiscal year ending June 2027
Net Sales¥26,700 million or %
Operating profit¥3,200 million or %
Operating profit margin¥12 million or %
Non-Financial Indicators
Percentage of Female ManagersAt least 20%
Number of new advanced IT certifications2x
Participation rate in purpose-related training100％
2030 VisionNet sales of ¥50 billion, operating income of ¥5 billion, and a payout ratio of more than 50%
Financial targets
ROEMaintain at 25% or higher
Payout ratio50% or more
Operating profit margin
Target for the fiscal year ending June 202712 %
Market Size / Share
Numerical data on market size and market share is not disclosed. The customer base comprises approximately 2,900 companies, and sales to end users account for 80%.Number of stores and locations
The number of employees by location is disclosed, but the number of openings and closures during the period is not disclosedNumber of employees
Consolidated1,713 people
Non-consolidated1,404 people
Record dateEnd of June 2026
Annual Dividend
Forecast for the fiscal year ending June 2027
Annual42 Yen
Interim21 Yen
End of period21 Yen
BreakdownOrdinary dividend: ¥39.5 per share; 45th anniversary commemorative dividend: ¥2.5 per share
Payout ratio
Forecast for the fiscal year ending June 202757.4 %
Acquisition of treasury shares
Actual resultsPurchased approximately ¥480 million of the Company's own shares in total from August to December 2024
Going forwardTo be determined in light of market conditions and other factors
| Item | Details |
|---|---|
| Document type | Financial results presentation |
| Fiscal Period Covered | First quarter of the fiscal year ending June 2027 |
| Net Sales | 6,241 Millions of yen (YoY -0.1%) |
| Operating profit | 644 Millions of yen (YoY -9.4%) |
| Ordinary income | 653 Millions of yen (YoY -8.4%) |
| Net income | 380 Millions of yen (YoY -18.7%) |
| Gross Profit Margin | Rate 24.7 / Year-on-year change (points) 0.8 |
| Operating profit margin | Rate 10.3 / Year-on-year change (points) -1.1 |
| Selling, general and administrative expenses | 897 Millions of yen |
| Results for the three months of the current quarter | Net Sales 6,241 Millions of yen / Operating profit 644 Millions of yen / Ordinary income 653 Millions of yen / Profit attributable to owners of parent for the quarter 380 Millions of yen |
| Full-year earnings forecast | Net Sales 26,700 Millions of yen / Operating profit 3,200 Millions of yen / Ordinary income 3,200 Millions of yen / Profit attributable to owners of the parent 2,190 Millions of yen |
| Progress against full-year forecast | Net Sales 23.4 % / Operating profit 20.1 % / First-half revenue 48 % / First-Half Operating Profit 43.7 % / By business Business Solutions revenue 24.4 / Embedded Solutions Net Sales 22 / Product Solutions Net Sales 21.1 / System Sales Net Sales 23.9 |
| Self-assessment against the plan | Progress against the earnings forecast is broadly in line with the initial assumptions |
| Segment results | Segment Software Development business / Net Sales 6,002 / Revenue Unit Millions of yen / Year-on-year revenue growth 0.2 / Segment profit 613 / Profit Unit Millions of yen / Year-on-Year Change in Profit -8.5, Segment Business Solutions Business / Net Sales 3,664 Millions of yen / Year on year against the same period last year 7.1 Millions of yen, Segment Embedded Solutions business / Net Sales 1,851 Millions of yen / Year on year against the same period last year -7.6 Millions of yen, Segment Product Solutions business / Net Sales 486 Millions of yen / Year on year against the same period last year -13.9 Millions of yen, Segment Systems Sales Business / Net Sales 239 / Revenue Unit Millions of yen / Year-on-year revenue growth -6.5 / Segment profit 30 / Profit Unit Millions of yen / Year-on-Year Change in Profit -23.6 |
| Breakdown of Factors Affecting the Change | Net Sales Business solutions 243 Millions of yen / Embedded Solutions -151 Millions of yen / Product Solutions -79 Millions of yen / Systems Sales -16 Millions of yen / Total change -3 Millions of yen / Operating profit Gross profit 51 Millions of yen / Investment spending -69 Millions of yen / Personnel Expenses -19 Millions of yen / Advertising expenses -10 Millions of yen / Office supplies -17 Millions of yen / Rent -9 Millions of yen / Fees paid -9 Millions of yen / Other expenses 16 Millions of yen / Strategic investment expenses 109 |
| Key KPIs | Indicator name Gross profit / Value 1,541 Millions of yen / Year on year against the same period last year 3.4 Millions of yen, Indicator name Gross profit margin / Value 24.7 % / Year-on-year change (points) 0.8 %, Indicator name SG&A expenses / Value 897 Millions of yen / Year on year against the same period last year 15.1 Millions of yen, Indicator name SG&A ratio / Value 14.4 % / Year-on-year change (points) 1.9 %, Indicator name Operating margin / Value 10.3 % / Year-on-year change (points) -1.1 %, Indicator name Equity ratio / Value 74.7 % |
| Number of stores and locations | The number of employees by location is disclosed, but the number of openings and closures during the period is not disclosed |
| Number of employees | Consolidated 1,713 people / Non-consolidated 1,404 people / Record date End of June 2026 |
| Assumptions Underlying the Business Outlook | Numerical assumptions for foreign exchange rates, raw material prices, interest rates and other factors are not disclosed. The outlook assumes budget adjustments to automotive-related software investment and continued investment in the use of AI and the development of strategic products. |
| Medium-term management plan targets | Fiscal year ending June 2027 Net Sales ¥26,700 million or % / Operating profit ¥3,200 million or % / Operating profit margin ¥12 million or % / Non-Financial Indicators Percentage of Female Managers At least 20% / Number of new advanced IT certifications 2x / Participation rate in purpose-related training 100％ / 2030 Vision Net sales of ¥50 billion, operating income of ¥5 billion, and a payout ratio of more than 50% |
| Financial targets | ROE Maintain at 25% or higher / Payout ratio 50% or more / Operating profit margin Target for the fiscal year ending June 2027 12 % |
| Annual Dividend | Forecast for the fiscal year ending June 2027 Annual 42 Yen / Interim 21 Yen / End of period 21 Yen / Breakdown Ordinary dividend: ¥39.5 per share; 45th anniversary commemorative dividend: ¥2.5 per share |
| Payout ratio | Forecast for the fiscal year ending June 2027 57.4 % / Total payout ratio Not disclosed |
| Acquisition of treasury shares | Actual results Purchased approximately ¥480 million of the Company's own shares in total from August to December 2024 / Going forward To be determined in light of market conditions and other factors |
| Market Size / Share | Numerical data on market size and market share is not disclosed. The customer base comprises approximately 2,900 companies, and sales to end users account for 80%. |
| New initiatives | Participation in the QNX Partner Program and optimization of RezOT for the QNX environment, Prototype development of an AI agent that converts the tacit knowledge of skilled personnel into explicit knowledge, Proof of concept for an on-premises data-masking tool targeted for release during the current fiscal year, Establish a Business Development Promotion Department under the Product Solutions Division, Nationwide rollout of regional revitalization × AI/digital transformation solutions |
Items this document does not state (5)
Unit price and quantity metricsRisk amount incorporated into the outlookCapital expendituresOrders received and order backlogKey points of the Q&A
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.Budget adjustments to software investment in the automotive sector led to lower sales in the automotive-related verification business, centered on the US subsidiary. This was offset by strong demand for AI and digital transformation, an increase in high-value-added projects, and productivity improvement initiatives. As investment in the development of AI-related and strategic products was expanded, the increase in selling, general and administrative expenses exceeded the increase in gross profit, resulting in lower operating income. In addition, the Company recorded a ¥41 million impairment loss on investment securities as an extraordinary loss due to a decline in the share price of its capital and business alliance partner, resulting in lower net income.
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