Contraction of Existing Core Businesses and Prolonged Launch of New Businesses

「The company is expanding its wireless LAN systems and services, in cooperation with NTT Broadband Platform, Inc. (NTTBP), among providers of wireless LAN hotspots serving the telecommunications, railway, distribution and local government sectors. Maintenance and operation projects progressed as planned, but the company was unable to win orders for large-scale construction projects, resulting in a substantial decline in revenue.」

「During the six-month consolidated period, revenue fell below the same period of the previous fiscal year in all business areas, and gross profit also declined. Selling, general and administrative expenses increased due to excess available capacity, widening the operating loss.」

「In the fiscal year, revenue exceeded the previous fiscal year in all business areas, but fell short of plan.」

「Since the previous fiscal year, the company has been preparing to build a new customer-creation model with several railway companies as one form of Mobility as a Service (MaaS), but in the third quarter the initiative remained at the stage of conducting a proof-of-concept project. As before, operations were limited to small-scale projects, including services related to transportation IC cards, such as transit manager, and app operation for private railways. As a result, revenue in this business area was ¥49.327 million, down 6.1% year on year, and the segment loss was ¥40.225 million, compared with a segment loss of ¥29.819 million in the same period of the previous fiscal year.」

「Since the previous fiscal year, the company has been preparing to build a new customer-creation model with several railway companies as one form of Mobility as a Service (MaaS), but in the first quarter the initiative remained at the stage of conducting a proof-of-concept project. As before, operations were limited to small-scale projects, including services related to transportation IC cards, such as transit manager, and app operation for private railways.」

「Since the previous fiscal year, the company has been preparing to build a new customer-creation model with several railway companies as one form of Mobility as a Service (MaaS), but commercialization has been delayed. During the fiscal year, operations were limited to small-scale projects, including services related to transportation IC cards, such as transit manager, and app operation for private railways.」

「Since the previous fiscal year, the company has been preparing to build a new customer-creation model with several railway companies as one form of Mobility as a Service (MaaS), but commercialization has been delayed. In the third quarter, operations were limited to small-scale projects, including services related to transportation IC cards, such as transit manager, and app operation for private railways. As a result, revenue in this business area was ¥52.546 million, down 43.3% year on year, and the segment loss was ¥29.819 million.」

「Since the previous fiscal year, the company has been preparing to build a new customer-creation model with several railway companies as one form of Mobility as a Service (MaaS), but commercialization has been delayed. In the first quarter, operations were limited to small-scale projects, including services related to transportation IC cards, such as transit manager, and app operation for private railways.」

「Since the previous fiscal year, the company has been preparing to build a new customer-creation model with several railway companies as one form of Mobility as a Service (MaaS), but commercialization has been delayed. In the first quarter, operations were limited to small-scale projects, including services related to transportation IC cards, such as transit manager, and app operation for private railways.」

「In the third quarter, the Solutions business area reported higher revenue but lower profit year on year, while the other 2 business areas reported lower revenue and lower profit. Railway operators and other transportation companies served by the Mobility Innovation business, as well as distribution companies served by the Solutions business, were directly affected by the contraction in economic activity accompanying the spread of the novel coronavirus. They showed a tendency to postpone IT investment and advertising activities, which affected the Group.」

「In this business area, the company ended its provision of timetables and route-search technology to JRE Planning Co., Ltd. at the end of the first quarter and is focusing on growing services such as the transit manager cloud-based transportation expense settlement service for transportation IC cards, apps for private railways, and system development and operation into core businesses in this area. …As a result, revenue in this business area was ¥75.190 million, down 26.9% year on year, and the segment loss was ¥22.734 million, compared with segment profit of ¥14.559 million in the same period of the previous fiscal year. …As a result, revenue in this business area was ¥106.809 million, up 5.7% year on year, and the segment loss was ¥22.592 million, compared with a loss of ¥17.312 million in the same period of the previous fiscal year.」

「As a result, revenue in this business area was ¥48.459 million, up 67.4% year on year, and the segment loss was ¥16.049 million, compared with a loss of ¥15.618 million in the same period of the previous fiscal year.」

「Although the Mobility Innovation and Wireless Innovation business areas reported lower revenue, the Solutions business area was able to offset this to some extent through higher revenue from hardware sales and other sources. Gross profit also declined as revenue fell, and the company remained in an operating loss position through the third quarter. However, profit margins on projects at the fiscal year-end exceeded expectations, and selling, general and administrative expenses were also contained, enabling the company to report operating profit for the full fiscal year.」

「The company is focusing on making new businesses, including the O2O2O and MMS businesses, major pillars of this business area. However, as commercial facilities and other businesses repeatedly curtailed operations amid the spread of the novel coronavirus, it became difficult to build up a pipeline of projects. Orders for the J-TALK platform for sign-language services increased from local governments and other customers, but its impact on overall earnings remained limited.」

「Among these initiatives, we are focusing on making new businesses such as O2O2O and MMS key pillars of this business area, but a succession of commercial facilities and other businesses scaled back operations amid the spread of the novel coronavirus, making it difficult to build up projects.」

「As commercial facilities and other businesses repeatedly curtailed operations amid the spread of the coronavirus, it became difficult to build up a pipeline of projects.」

「Among these initiatives, we are focusing on making new businesses such as O2O2O and MMS key pillars of this business area. At the same time, we reduced costs by scaling back the low-margin cloud-based interpreting service J-TALK and reallocating personnel. In the fourth quarter, the addition of projects such as app development for parking facilities also improved earnings. As a result, revenue in this business area was ¥222.090 million, up 2.2% year on year, and the segment loss was ¥15.923 million, compared with a loss of ¥64.208 million in the previous fiscal year.」

「As a result, revenue in this business area was ¥167.223 million, up 13.0% year on year, and the segment loss was ¥11.216 million, compared with a loss of ¥61.593 million in the same period of the previous fiscal year.」

「Among these initiatives, we are focusing on making new businesses such as O2O2O and MMS key pillars of this business area. In the second quarter, support for promotional services for distribution-oriented financial companies undertaken by MMS Marketing, an equity-method investee, since November of the previous year increased in importance. Although this business area includes low-margin projects, it also includes initiatives being pursued as investments for the future. We are carefully selecting projects and working to improve margins. As a result, revenue in this business area was ¥117.322 million, up 28.0% year on year, and the segment loss was ¥6.288 million, compared with a loss of ¥41.800 million in the same period of the previous year.」

「The company is focusing on making new businesses, including the O2O2O and MMS businesses, major pillars of this business area, and has steadily built a track record since the second half of the previous fiscal year. While this business area includes some low-margin projects, it also includes initiatives undertaken as investments for the future. The company is selectively pursuing projects and working to improve margins. As a result, revenue in this business area was ¥52.226 million, up 3.2% year on year, and the segment loss was ¥6.761 million, compared with a loss of ¥18.227 million in the same period of the previous fiscal year.」

「The company focused on developing new businesses, including O2O2O and MMS, as major pillars of this business area. It also reduced costs by scaling back the low-margin cloud-based interpretation service J-TALK and reallocating personnel. In the fourth quarter, the addition of app development for restaurants and other projects improved the earnings balance. As a result, sales in this business area were ¥217.319 million, up 3.0% year on year, and the segment loss was ¥64.208 million, compared with a loss of ¥94.658 million in the previous fiscal year.」

「The company focused on developing new businesses, including O2O2O and MMS, as major pillars of this business area and continued to build a track record. The business area includes low-margin projects, as well as projects being pursued as investments for the future, and the company is working to improve margins after carefully selecting which projects to pursue. As a result, sales in this business area were ¥147.956 million, down 6.5% year on year, and the segment loss was ¥61.593 million, compared with a loss of ¥84.239 million in the same period of the previous year.」

「The company focused on developing new businesses, including O2O2O and MMS, as major pillars of this business area and has steadily built up a track record since the second half of the previous fiscal year. The business area includes low-margin projects, as well as projects being pursued as investments for the future, and the company is working to improve margins after carefully selecting which projects to pursue.」

「The company focused on developing new businesses, including O2O2O and MMS, as major pillars of this business area and has steadily built up a track record since the second half of the previous fiscal year. The business area includes low-margin projects, as well as projects being pursued as investments for the future, and the company is working to improve margins after carefully selecting which projects to pursue. As a result, sales in this business area were ¥50.626 million, up 27.1% year on year, and the segment loss was ¥18.227 million, compared with a loss of ¥44.770 million in the same period of the previous year.」

「Cost savings from closing the Fukuoka office and reorganising J-TALK's operating structure also contributed to improving earnings. In March 2018, when projects for O2O2O and MMS were concentrated, the company recorded its first monthly profit.」

「The company focused on developing the o2o2o business as a major pillar of this business area and began full-scale rollout from the second quarter. For the related MMS (Media to Mobile to Store) business, it also advanced planning, preparations and proposal activities for rollout from the fourth quarter onward. Efforts to improve operating efficiency in the interpretation services business, which began in the previous fiscal year, reduced costs, but orders remained sluggish. Sales in this business area increased due to a rise in new contract development projects, but the occurrence of substantially unprofitable projects limited the reduction in losses from business restructuring and cost reductions pursued since the previous fiscal year. As a result, sales in this business area were ¥158.325 million, up 35.7% year on year, and the segment loss was ¥84.239 million, compared with a loss of ¥104.578 million in the same period of the previous year.」

「The company focused on developing the o2o2o business as a major pillar of this business area and began full-scale rollout from the second quarter. Efforts to improve operating efficiency in the interpretation services business, which began in the previous fiscal year, reduced costs, but orders remained sluggish. Sales increased due to a rise in new contract development projects, but the occurrence of substantially unprofitable projects limited the reduction in losses from business restructuring and cost reductions pursued since the previous fiscal year. As a result, sales in this business area were ¥116.545 million, up 49.7% year on year, and the segment loss was ¥66.144 million, compared with a loss of ¥72.609 million in the same period of the previous year.」

「Efforts to improve operating efficiency in the interpretation services business, which began in the previous fiscal year, reduced costs, but orders remained sluggish. In addition, substantial deterioration in profitability on some new contract development projects resulted in lower sales and earnings for the business area as a whole.」

「The company focused on developing new businesses, including o2o2o and interpretation services, as major pillars of this business area, but achieved no notable results during the fiscal year. Other existing businesses, including the video streaming systems business and TV metadata ASP business, also remained sluggish. Operating and fixed costs weighed on the business area as a whole, resulting in performance substantially below plan.」

「The company focused on developing new businesses, including o2o2o and interpretation services, as major pillars of this business area, but achieved no notable results in the third quarter. Other existing businesses, including the video streaming systems business and TV metadata ASP business, also remained sluggish. Operating and fixed costs weighed on the business area as a whole, resulting in performance substantially below plan. As a result, sales in this business area were ¥116.699 million, down 5.6% year on year, and the segment loss was ¥104.578 million, compared with a loss of ¥100.605 million in the same period of the previous year.」

「Although the company struggled to win orders and generate sales in its proprietary businesses targeting o2o2o and inbound demand, its other businesses, including the video distribution systems business and TV metadata ASP business, also failed to make a significant contribution to performance. Across the business area as a whole, operating expenses and fixed costs became a burden, and results fell significantly short of plan.」

「As in the previous fiscal year, the company focused on businesses targeting o2o2o and inbound demand, but struggled to win orders and generate sales. In particular, the interpretation service J-TALK has required time to expand its customer base, and its contribution to sales has remained limited. The video streaming systems business and TV metadata ASP business continued to provide services, but high operating costs and fixed costs weighed on the business area as a whole, resulting in performance below plan.」

「The company focused on developing new businesses targeting o2o2o and inbound demand as new core pillars, but this was not enough to offset the substantial contraction of its formerly core video streaming systems business.」