Moving from public-sector pilot adoption to production procurement

「前期からの業績回復基調が継続いたしました。」

「Sales of product-related orders, centered on products from Check Point and Menlo (formerly Votiro), remained firm throughout the year. In particular, we successfully secured large projects, including new deployments of high-end models for large-scale networks, which drove sales growth. As a result, sales were ¥3,434 million, up 15.5% year on year, and the recovery in sales gained further momentum as improving business conditions were steadily reflected in performance.」

「Sales were ¥2,971 million, up 25.3% year on year, owing mainly to an increase in the number of projects as order conditions improved, particularly for product-related business, and orders for large-scale public-sector projects.」

「Although a number of projects with promising potential in terms of scale were not finalised until the next fiscal year or later, net sales were ¥2,833 million, down 10.5% year on year.」

「Large-scale projects in both the product-related and services-related businesses have increasingly become concentrated in the fourth quarter and beyond.」

「Although procurement for some large-scale projects, including public-sector projects, began in the latter half of the fiscal year, large-scale projects were carried over to the following fiscal year and beyond.」

「Regarding business performance, although system construction and delivery delays continued among SIers and end users, which are sales channels for the company's products and services, sales increased year on year in the third quarter alone, partly because procurement for some large-scale projects for government agencies and enterprises began. The company expects the security market for government agencies and enterprises, where it has strengths, to recover and grow in earnest going forward, and orders for large-scale projects finally began to progress in the third quarter.」

「Procurement for large projects, including those involving the Ministry of Health, Labour and Welfare, was delayed and resulted in only partial orders being received, while projects scheduled for the end of the fiscal year were pushed into the following fiscal year.」

「Regarding business performance, procurement began for some large projects in the public sector, including the Ministry of Health, Labour and Welfare, in the product-related business. In the services-related business, the stock base also increased steadily as a result of the effects of ongoing initiatives to improve quality and strengthen the organisational structure, resulting in revenue of ¥2,376 million, up 5.4% year on year.」

「Although we expected procurement to gather momentum from this fiscal year in the public sector, including the Ministry of Health, Labour and Welfare, it has been pushed back to the second half of the next fiscal year or later. We will continue to follow these opportunities so that we can capture them reliably when they are disclosed as projects.」

「Government procurement expected in the first half was pushed back to the fourth quarter or later, while the launch of new products introduced in the previous fiscal year remained delayed from the second half onward. As a result, net sales were ¥2,255 million, down 19.0% year on year.」

「Government procurement expected in the first half was pushed into the second half, and the launch of new products introduced in the previous fiscal year was also delayed. As a result, net sales were ¥1,533 million, down 27.9% year on year.」

「In the public sector, the company has also undertaken activities aimed at adoption in future production procurements, including pilot projects to examine specifications for security measures from the current fiscal year onward and involving these products. As a result, the company is already in a favourable position for adoption. In the next fiscal year, it will be important to accelerate activities aimed at securing firm adoption of the products it handles.」