Deterioration in Profitability Due to Intensifying Competition in the Information and Communications Systems Business

「Although revenue was broadly in line with the previous year, profit declined due to lower profitability on projects for government agencies and higher fixed costs, mainly personnel expenses. As a result, revenue from the information and communications systems business was ¥3,902 million, down 0.2% year on year, and operating profit was ¥68 million, compared with ¥195 million in the same period of the previous year.」

「Ordinary profit declined despite efforts to improve profitability through cost reductions, reduce fixed costs as a result of restrictions on activities, and control expenses. In addition to the impact of lower revenue, profitability declined due to lower sales incentives for mobile-device sales, increased promotional expenses to maintain unit sales, and intensifying competition in the systems business.」

「Although the Company worked to improve profitability through cost reductions and to control fixed costs, profit declined mainly because profitability deteriorated due to lower sales of systems for government agencies and of 西菱電機エンジニアリング株式会社, intensifying competition, and increased sales of IP radio equipment. As a result, revenue from the information and communications systems business was ¥5,935 million, up 6.4% year on year, and operating profit was ¥212 million, compared with ¥226 million in the same period of the previous year.」

「The information and communications systems business reported lower revenue due to a decline in orders received by its subsidiary 西菱電機エンジニアリング株式会社 from Mitsubishi Electric Corporation and a decline in large private-sector projects. Although the Company worked to improve profitability through cost reductions and control fixed costs in response to the decline in revenue, these efforts were insufficient to offset the impact, resulting in lower profit. As a result, revenue from the information and communications systems business was ¥1,489 million, down 6.7% year on year, and the business reported an operating loss of ¥28 million, compared with operating profit of ¥22 million in the same period of the previous year.」

「Although the Company worked to improve profitability through cost reductions and to control fixed costs, profitability deteriorated due to intensifying competition and other factors, resulting in lower profit. As a result, revenue from the information and communications systems business was ¥10,019 million (¥10,775 million in the same period of the previous year), and operating profit was ¥968 million (¥1,037 million in the same period of the previous year).」

「Although the Company worked to improve profitability through cost reductions and to control fixed costs, profitability deteriorated due to intensifying competition and other factors, resulting in lower profit.」