Increased R&D Expenses for Cutting-Edge AI Technologies and Delays in Progress
First written in FY2018. 10 of 22 entries say "Mitigated", first in FY2022-Q1. Latest entry: 2026-07-10.
Signpost moved to the "Worse" side of this theme in 2019, 2 years before the typical company in this theme (2021).
The whole theme swung hardest in 2019: 4 of 13 companies on the "Worse" side.
6 other companies' latest entry also says "Worsened".
- 2026-07-10WorsenedEarnings
「Selling, general and administrative expenses increased due to stronger sales and development activities, resulting in a segment loss of ¥61 million, compared with a segment loss of ¥36 million in the same quarter of the previous year.」
In the innovation business, the segment loss widened from ¥36 million in the same quarter of the previous year to ¥61 million due to higher expenses associated with sales and development activities. - FY2025RestatedAnnual report
「In the current fiscal year, the Innovation Business recorded research and development costs exceeding net sales. If the sales plans for these products are not achieved or development encounters difficulties, this may affect the company’s operating results and financial position.」
It continues to state that research and development costs exceed net sales in the Innovation Business and that failure to achieve sales plans or difficulties in development may affect operating results. - FY2025-Q1MitigatedAnnual report
「Total research and development expenses for the cumulative first quarter of the current fiscal year were ¥20 million.」
Research and development activities have continued, but research and development costs were ¥20 million for the cumulative first quarter of the current fiscal year, reducing the earnings burden from research and development costs from the previous phase of large-scale development. - FY2024RestatedAnnual report
「As of the end of the fiscal year, the company had not reached a major sales agreement for the product, and operating expenses, including research and development costs, exceeded net sales in the Innovation Business.」
It reconfirms that the company has not achieved a major sales agreement for the product and that operating expenses, including research and development costs, exceed net sales in the Innovation Business. - FY2024-Q3MitigatedAnnual report
「Regarding research and development activities, major technology development has been completed, and product improvements and the development of additional functions are expected to be the focus for the time being.」
It reconfirms its response to the risks of a significant increase in research and development costs and delays in progress by completing major technology development and limiting future research and development to product improvements and additional functions. - FY2024-Q1MitigatedAnnual report
「Regarding research and development activities, the company believes that major technology development has been completed and that, for the time being, activities will focus on product improvements and the development of additional functions.」
It indicates a response to the cost and progress risks associated with continuing large-scale research and development in advanced technologies by explaining that major technology development has been completed and future activities will focus on product improvements and additional functions. - FY2023MitigatedAnnual report
「Research and development costs decreased by ¥68 million from the previous fiscal year as the company completed its major development themes for Wonder Regi-BOOK and EZ Regi.」
It states that the completion of major product development themes and the ¥68 million decrease in research and development costs have partially eased the earnings burden from increased research and development costs. - FY2023-Q3MitigatedAnnual report
「In terms of profit, increased gross profit due to higher revenue and lower selling, general and administrative expenses, mainly owing to decreases in research and development costs and personnel recruitment costs, resulted in an operating loss of ¥79 million, compared with an operating loss of ¥337 million in the same quarter of the previous year.」
Decreases in research and development costs and personnel recruitment costs contributed to the decline in selling, general and administrative expenses, and the operating loss narrowed from the same period of the previous year, partially easing the earnings burden from increased research and development costs. - FY2023-Q2MitigatedAnnual report
「Research and development activities mainly focused on improving products to meet customer needs. Total research and development costs for the cumulative second quarter of the current fiscal year were ¥53 million.」
While continuing to improve products to meet customer needs, research and development costs decreased from ¥102 million in the cumulative second quarter of the same period of the previous year to ¥53 million, reducing the earnings burden from research and development costs year on year. - FY2022MitigatedAnnual report
「Meanwhile, research and development costs decreased by ¥212 million from the previous fiscal year.」
Research and development activities have continued, but research and development costs decreased from ¥391.909 million in the previous fiscal year to ¥179.334 million. It also describes diversification of revenue sources through new product development and enhancement of the product lineup. - FY2022-Q3MitigatedAnnual report
「In terms of profit, lower cost of sales, mainly due to lower depreciation expenses, and lower selling, general and administrative expenses, primarily reflecting lower research and development costs, resulted in an operating loss of ¥337 million, compared with an operating loss of ¥490 million in the same quarter of the previous year.」
Selling, general and administrative expenses, primarily research and development costs, decreased, and the operating loss narrowed from the same period of the previous year, partially easing the earnings burden from increased research and development costs. - FY2022-Q2MitigatedAnnual report
「The company’s research and development costs were ¥290 million, or 13.7% of net sales, in the fiscal year ended February 2020, and ¥391 million, or 19.2% of net sales, in the fiscal year ended February 2021. The company positions research and development activities as upfront investment to enhance corporate value over the long term and intends to continue investing management resources in research and development activities actively and strategically. Research and development costs are used mainly for research and development activities involving AI-enabled unmanned cash registers and other products in the Innovation Business. Through these activities, the company aims to create new products and services and recover the invested funds over the medium to long term. At the same time, because research and development costs account for a high proportion of net sales, the company will control risks to business continuity by selecting appropriate research and development targets and managing costs appropriately.」
It reconfirms its policy of continuing research and development as upfront investment while controlling risks to business continuity through the selection of research and development targets and cost management. Research and development costs for the cumulative second quarter of the current fiscal year were ¥102 million, down from ¥254 million in the same period of the previous year. - FY2022-Q1MitigatedAnnual report
「The company positions research and development activities as upfront investment to enhance corporate value over the long term and intends to continue investing management resources in research and development activities actively and strategically. It will control risks to business continuity by selecting appropriate research and development targets and managing costs appropriately.」
While maintaining its policy of continuing research and development, it explains that, given the high ratio of research and development costs to net sales, it will manage risks to business continuity through target selection and cost management. Research and development costs for the first quarter were ¥58 million. - FY2021WorsenedAnnual report
「As of the end of the fiscal year, the company had not reached a major sales agreement for the product, and operating expenses, including research and development costs, exceeded net sales in the Innovation Business.」
It states that Wonder Regi had not reached a major sales agreement and that operating expenses, including research and development costs, exceeded net sales. Research and development costs were ¥391.909 million, indicating that research and development and product commercialization risks actually affected operating results. - FY2021-Q3WorsenedAnnual report
「In terms of profit, expenses related to personnel recruitment and personnel expenses, as well as increased research and development costs, resulted in an operating loss of ¥490 million, compared with an operating loss of ¥56 million in the same quarter of the previous year.」
Increased research and development costs continue to be cited as one factor behind the operating loss, which widened from ¥56 million in the same quarter of the previous year to ¥490 million. The risk of higher research and development costs actually affected operating results; quantified is true and materialized is true. - FY2021-Q2WorsenedAnnual report
「In terms of profit, expenses related to personnel recruitment and personnel expenses, as well as increased research and development costs for the Innovation Business, resulted in an operating loss of ¥352 million, compared with an operating loss of ¥27 million in the same quarter of the previous year.」
Increased research and development costs are cited as one factor behind the operating loss, which widened from ¥27 million in the same quarter of the previous year to ¥352 million. - FY2021-Q1WorsenedAnnual report
「In terms of profit, increased personnel expenses resulting from the increase in employees and higher research and development costs resulted in an operating loss of ¥183 million, compared with operating income of ¥4 million in the same quarter of the previous year. Total research and development costs for the cumulative first quarter of the current fiscal year were ¥139 million.」
Increased research and development costs were one factor behind the operating loss, and total research and development costs for the current quarter were specified as ¥139 million. - FY2020WorsenedAnnual report
「Selling, general and administrative expenses increased 33.9% year on year to ¥729 million, mainly because research and development costs increased by ¥140 million as a result of the company’s active efforts to develop Wonder Regi.」
The increase in research and development costs for the AI product materialized as a ¥140 million year-on-year increase and became a major factor behind the increase in selling, general and administrative expenses and the operating loss. - FY2020-Q3MaterialisedAnnual report
「As a result, for the cumulative third quarter of the current fiscal year, net sales were ¥1,594 million, down 23.1% year on year. In terms of profit, in addition to the impact of lower revenue, increased research and development costs and other factors resulted in an operating loss of ¥56 million, compared with operating income of ¥240 million in the same quarter of the previous year.」
Increased research and development costs are cited as one factor behind the operating loss, showing that the risk of higher research and development costs for advanced technologies actually affected results for the current fiscal year. - FY2020-Q2MaterialisedAnnual report
「In terms of profit, in addition to the impact of lower revenue, increased research and development costs and other factors resulted in an operating loss of ¥27 million, compared with operating income of ¥166 million in the same quarter of the previous year.」
Regarding the possibility that increased research and development costs for advanced technologies could affect operating results, it is actually stated for the current quarter that increased research and development costs were one factor behind the operating loss. - FY2019RestatedAnnual report
「Because technological innovation in these advanced technologies is progressing rapidly and competition is becoming increasingly intense, delays in the progress of future research and development activities or against plans may increase the research and development costs initially anticipated and affect the company’s operating results.」
It reiterates the risk of research and development delays and increased costs against the backdrop of rapid technological innovation and intense competition in AI and other advanced technologies. - FY2018First statedAnnual report
「Because technological innovation in these advanced technologies is progressing rapidly and competition is becoming increasingly intense, delays in the progress of future research and development activities or against plans may increase the research and development costs initially anticipated and affect the company’s operating results.」
It indicates that, against the backdrop of rapid technological innovation and intense competition in AI and other technologies, delays in research and development and increased costs may affect operating results.