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Earnings presentationSecond quarter of the fiscal year ending September 202612 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥1,092 million+2.0%
Operating profit¥229 million-9.0%
Net income¥160 million-13.0%
Gross Profit Margin78%
Operating profit margin21%
Selling, general and administrative expenses¥626 million
Results for the three months of the current quarter
Stock revenue
¥427 million
Full-year earnings forecast
Net Sales
¥2,700 million
Operating profit
¥630 million
Net income
¥430 million
Annual Dividend
¥22
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 Sales40%
Operating profit36%
Net income37%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Revenue fell short of the interim forecast, while operating profit and net profit exceeded the interim forecastKey points of the Q&AKey questions raised by investors at the briefing and the company's answers
- HIMOTOKI has received numerous inquiries from the mid-sized enterprise and education markets and has made a strong start. The policy is to strengthen relationships with partners that have strong positions in these markets
- The decline in operating profit and net profit was due to the expansion of sales of externally procured products, which have relatively low profit margins
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Net SalesLicense sales increased, while service provision and other merchandise sales declined following the year-earlier large-scale deals
Selling, general and administrative expenses
Personnel Expenses+¥20 million
Outsourcing expenses-¥2 million
Depreciation and amortizationUp ¥4 million
Internal systems expenses and other costs-¥4 million
Office-related expenses±¥0 million
Customer development expenses+¥2 million
Travel and transportation expenses±¥0 million
Other+¥3 million
Total+¥23 million
New initiatives
- Launch of HIMOTOKI, a tool for visualizing communications quality
- Expansion of the product lineup for the mid-sized enterprise market
- Expansion of sales in the boards of education market using the CX monitoring option
- M&A of systems engineering companies focused on IT infrastructure integration
- Research and development of new products and services, and investment in human capital
Key KPIsA metric the company considers important as a management benchmark.
- Stock revenue¥745 millionYear on year against the same period last year+3.0%
- Stock revenue ratio77 %
- System Answer update rate95 %Year on year against the same period last year0.0%
- Number of vendors supporting System Answer133 companies
- Implementation track record1,000 companies or more
Segment results
As the Company operates in a single segment, segment breakdown: not disclosedMedium-term management plan targets
Revenue GrowthAnnual average of 115% or more
Medium-term targetDouble revenue, including through M&A
Financial targets
Equity ratio
Actual results63 %
Debt-to-equity ratio
Actual results0.33 times
Net debt-to-equity ratio
Actual results-0.69 times
Market Size / Share
- Domestic IT market¥27.8953 trillionAs of2025 forecast
- IT operations management market¥189.4 billionAs of2023 forecast
- Domestic information security market¥1.6665 trillionAs ofEstimated actual for 2023
- System Answer penetration among local governments (prefectures)32 %
- System Answer penetration among local governments (ordinance-designated cities and others)20 %
Number of employees
Number of Employees2 people hired in the second quarter. 94 people planned at fiscal year-end
Changes during the period and hiring planPlans to hire 10 people in the fiscal year ending September 2026
Annual Dividend
Annual dividend per share¥22
Interim¥11
End of period¥11
Payout ratio
Rate29.2 %
PolicyTargeting a payout ratio of 30%
| Item | Details |
|---|---|
| Document type | Earnings presentation |
| Fiscal Period Covered | Second quarter of the fiscal year ending September 2026 |
| Net Sales | ¥1,092 million (YoY +2.0%) |
| Operating profit | ¥229 million (YoY -9.0%) |
| Net income | ¥160 million (YoY -13.0%) |
| Gross Profit Margin | 78% |
| Operating profit margin | 21% |
| Selling, general and administrative expenses | ¥626 million |
| Results for the three months of the current quarter | Stock revenue ¥427 million |
| Full-year earnings forecast | Net Sales ¥2,700 million / Operating profit ¥630 million / Net income ¥430 million / Annual Dividend ¥22 |
| Progress against full-year forecast | Net Sales 40% / Operating profit 36% / Net income 37% |
| Self-assessment against the plan | Revenue fell short of the interim forecast, while operating profit and net profit exceeded the interim forecast |
| Segment results | As the Company operates in a single segment, segment breakdown: not disclosed |
| Breakdown of Factors Affecting the Change | Net Sales License sales increased, while service provision and other merchandise sales declined following the year-earlier large-scale deals / Selling, general and administrative expenses Personnel Expenses +¥20 million / Outsourcing expenses -¥2 million / Depreciation and amortization Up ¥4 million / Internal systems expenses and other costs -¥4 million / Office-related expenses ±¥0 million / Customer development expenses +¥2 million / Travel and transportation expenses ±¥0 million / Other +¥3 million / Total +¥23 million |
| Key KPIs | Indicator name Stock revenue / Value ¥745 million / Year on year against the same period last year ¥3 million, Indicator name Stock revenue ratio / Value 77 % / Year on year against the same period last year Not disclosed, Indicator name System Answer update rate / Value 95 % / Year on year against the same period last year 0 %, Indicator name Number of vendors supporting System Answer / Value 133 companies / Year on year against the same period last year Not disclosed, Indicator name Implementation track record / Value 1,000 companies or more / Year on year against the same period last year Not disclosed |
| Number of employees | Number of Employees 2 people hired in the second quarter. 94 people planned at fiscal year-end / Changes during the period and hiring plan Plans to hire 10 people in the fiscal year ending September 2026 |
| Medium-term management plan targets | Revenue Growth Annual average of 115% or more / Medium-term target Double revenue, including through M&A / Target fiscal year Not disclosed |
| Financial targets | Equity ratio Actual results 63 % / Debt-to-equity ratio Actual results 0.33 times / Net debt-to-equity ratio Actual results -0.69 times |
| Annual Dividend | Annual dividend per share ¥22 / Interim ¥11 / End of period ¥11 |
| Payout ratio | Rate 29.2 % / Policy Targeting a payout ratio of 30% |
| Market Size / Share | Item Domestic IT market / Value ¥27.8953 trillion / As of 2025 forecast, Item IT operations management market / Value ¥189.4 billion / As of 2023 forecast, Item Domestic information security market / Value ¥1.6665 trillion / As of Estimated actual for 2023, Item System Answer penetration among local governments (prefectures) / Value 32 %, Item System Answer penetration among local governments (ordinance-designated cities and others) / Value 20 % |
| Key points of the Q&A | HIMOTOKI has received numerous inquiries from the mid-sized enterprise and education markets and has made a strong start. The policy is to strengthen relationships with partners that have strong positions in these markets, The decline in operating profit and net profit was due to the expansion of sales of externally procured products, which have relatively low profit margins |
| New initiatives | Launch of HIMOTOKI, a tool for visualizing communications quality, Expansion of the product lineup for the mid-sized enterprise market, Expansion of sales in the boards of education market using the CX monitoring option, M&A of systems engineering companies focused on IT infrastructure integration, Research and development of new products and services, and investment in human capital |
Items this document does not state (8)
Ordinary incomeUnit price and quantity metricsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookAcquisition of treasury sharesCapital expendituresOrders received and order backlog
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.Revenue from license sales increased, driven by customers switching from other vendors, and security solutions also grew, while service provision and other merchandise sales declined following the year-earlier large-scale deals. Interim revenue fell short of the forecast because revenue of approximately ¥8 million from 2 projects scheduled to be recorded in March was deferred until April. Operating profit and net profit declined because sales of externally procured products, including security products and network equipment with lower profit margins than System Answer, were expanded.
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