Increase in Development Costs in New Business Areas and Provision for Loss on Orders
First written in FY2017-Q2. 6 of 14 entries say "Worsened", first in FY2017-Q3. Latest entry: FY2026.
Globalway moved to the "Worse" side of this theme in 2016, 7 years before the typical company in this theme (2023).
57 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Profitability improved through better project quality and more thorough project profit-and-loss management in the digital solutions business.」
Following past deterioration in the profitability of development projects and recognition of provisions, project quality and profit-and-loss management improved, leaving the provision for contract losses at zero at the end of the current fiscal year. - FY2025-H1MaterialisedAnnual report
「A loss-making project arose in the first quarter, and the company recognized a provision for contract losses in response」
A development project became loss-making, and the company recognized a ¥31.058 million provision for contract losses. - FY2023-Q2WorsenedAnnual report
「During the second quarter of the current fiscal year, profitability declined because progress in securing capabilities stalled and the profitability of some projects deteriorated toward the end of September, among other factors.」
Deterioration in the profitability of some projects occurred and emerged as lower earnings in the Salesforce business. - FY2022MitigatedAnnual report
「The provision for contract losses included in cost of sales is as follows.」
There was no provision expense for contract losses during the current consolidated fiscal year, and the higher development costs and provision recognized in the previous fiscal year did not continue into the current fiscal year. - FY2021-Q1MitigatedAnnual report
「Decrease in provision for contract losses: ¥2.5 million」
The ¥2.5 million provision for contract losses recognized at the end of the previous consolidated fiscal year decreased, leaving a zero balance at the end of the first quarter of the current fiscal year. - FY2020MaterialisedAnnual report
「Change in provision for contract losses (△ indicates a decrease) - 2,500」
The company explained that a substantial increase in man-hours occurred under some software development contracts and recognized a ¥2.5 million provision for contract losses during the current consolidated fiscal year. - FY2020-Q3WorsenedAnnual report
「However, because a substantial increase in man-hours occurred under some software development contracts, the company recognized a provision for contract losses.」
A substantial increase in man-hours occurred under some software development contracts, and the company recognized a ¥18.5 million provision for contract losses. This also contributed to the business application business's segment loss. - FY2020-Q2WorsenedAnnual report
「However, because a substantial increase in man-hours occurred under some software development contracts, the company recognized a provision for contract losses.」
A substantial increase in man-hours occurred under some software development contracts, and the company recognized a ¥18 million provision for contract losses. This was a factor behind the business application business's segment loss. - FY2020-Q1WorsenedAnnual report
「Because a substantial increase in man-hours occurred under some software development contracts concluded in the first quarter, the company implemented contract amendments changing the delivery dates and recognized a provision for contract losses.」
A substantial increase in man-hours and changes to delivery dates occurred under some software development contracts, leading to recognition of a provision for contract losses. This is also cited as a factor behind the business application business's segment loss. - FY2019-Q3RestatedAnnual report
「Provision for contract losses 13,955」
As of the end of the third quarter of the current fiscal year, the company had recognized a ¥13.955 million provision for contract losses. - FY2018-Q3WorsenedAnnual report
「The efficiency improvements initially anticipated are being pursued by bringing in-house some system operations previously outsourced, with the aim of improving margins. However, the process is taking time, resulting in higher outsourcing costs.」
Outsourcing costs are increasing due to delays in efficiency improvements and insourcing, and the cost burden of operating the business, including new areas, continues. - FY2017RestatedAnnual report
「The company focused on the cloud-based ERP solution area, a new business area, but development schedules were delayed on some projects and additional outsourcing costs increased, resulting in a lower profit margin.」
The company reports continued delays in development and higher outsourcing costs in the new ERP area, together with a lower profit margin, as in the previous quarter. - FY2017-Q3WorsenedAnnual report
「The company focused on the cloud-based ERP solution area, a new business area, but development schedules were delayed on some projects and additional outsourcing costs increased, resulting in a lower profit margin.」
Delays in development schedules and higher additional outsourcing costs in the new ERP area emerged as specific factors behind the decline in the profit margin. - FY2017-Q2MaterialisedAnnual report
「Recognition of a provision for contract losses due to higher development costs in new areas of the business and web application business」
Development costs increased in new business areas, and the recognition of a ¥3.536 million provision for contract losses resulted in an actual decline in the profit margin.