Increase in selling, general and administrative expenses due to the issuance of stock acquisition rights and an increase in headcount

「Although cost of sales and SG&A expenses also declined, the reductions in the operating loss, ordinary loss and net loss attributable to owners of the parent for the quarter were limited.」

「In the consolidated fiscal year under review, revenue exceeded the previous fiscal year, but gross profit growth was weak. Although the company and its subsidiaries reduced their operating losses by cutting selling, general and administrative expenses, they were unable to secure operating profit and recorded an operating loss and an ordinary loss.」

「The operating loss narrowed slightly as the company was able to reduce selling, general and administrative expenses to some extent.」

「Selling, general and administrative expenses increased both year on year and versus the plan, due to higher labor costs resulting from lower utilization caused by declining revenue and the increased burden associated with 株式会社ＭＭＳマーケティング, which became a subsidiary.」

「Revenue was below the same period of the previous year in all business areas, and gross profit also declined. Selling, general and administrative expenses increased due to idle capacity, resulting in a larger operating loss.」

「Selling, general and administrative expenses increased both year on year and versus the plan, due to higher labor costs from the first through third quarters and the increased burden associated with 株式会社ＭＭＳマーケティング, which became a subsidiary.」

「The Solutions business, which has included MMS Marketing since it became a consolidated subsidiary at the end of the previous consolidated fiscal year, recorded a substantial increase in revenue, but segment expenses also increased and the segment loss widened.」

「Cost of sales increased due to lower development efficiency resulting from a decline in large-scale development and implementation projects, as well as an inventory write-down on hardware held for sale that had been stocked at higher levels in response to tight semiconductor supply and demand. In addition, higher labor costs related to idle capacity and sales activities increased selling, general and administrative expenses. As a result, the operating loss worsened despite a slight increase in overall revenue.」

「Staff utilization declined across the company, increasing selling, general and administrative expenses and widening the operating loss.」

「Staff utilization declined across the company, increasing selling, general and administrative expenses and widening the operating loss.」

「The operating loss widened because selling, general and administrative expenses increased due to lower staff utilization.」

「Selling, general and administrative expenses declined from the previous consolidated fiscal year because labor costs and other expenses decreased as development efficiency improved, while travel was reduced in response to the spread of COVID-19 and travel and transportation expenses and other costs were contained through the promotion of telework and web conferences.」

「In June 2020, the recognition of ¥31 million in expenses related to Series 13 Stock Acquisition Rights increased selling, general and administrative expenses, and the plan to absorb these expenses through the intended expansion of the business scale when the rights were issued failed to materialize.」

「In June of the fiscal year, the recognition of ¥31 million in expenses related to Series 13 Stock Acquisition Rights increased selling, general and administrative expenses, and the plan to absorb these expenses through the intended expansion of the business scale when the rights were issued failed to materialize.」

「In the Wireless Innovation business, sales exceeded the year-earlier period and gross profit increased, partly because work-in-progress projects from the previous fiscal year were recorded. However, selling, general and administrative expenses increased, including the recognition of share-based compensation expenses related to Series 13 Stock Acquisition Rights, resulting in an operating loss.」

「Selling, general and administrative expenses increased due to higher staffing and other factors. However, the company steadily completed projects already received, particularly in the Wireless Innovation business, and although sales increased only slightly, gross profit rose, enabling it to record its highest-ever full-year operating profit.」

「Although gross profit recovered, operating losses increased from the previous fiscal year because selling, general and administrative expenses rose due to higher staffing.」

「Gross profit was boosted, particularly by recording large projects in the Wireless Innovation business, absorbing the increase in selling, general and administrative expenses associated with higher staffing and other factors and enabling the company to record operating profit.」

「Selling, general and administrative expenses increased due to higher staffing and other factors, resulting in losses from the first through third quarters. However, earnings improved in the fourth quarter as large projects were recorded in each business area, particularly the Wireless Innovation business, enabling the company to return to profitability for the full fiscal year.」

「Gross profit recovered as the deterioration in the cost ratio caused by unprofitable projects in the Solutions business in the previous fiscal year was resolved. However, operating losses increased from the previous fiscal year because selling, general and administrative expenses rose due to the issuance of stock acquisition rights and higher staffing.」