Risk of a decline in customers’ appetite for IT investment
First written in FY2018. 10 of 18 entries say "Restated". Latest entry: FY2025.
TeamSpirit moved to the "Worse" side of this theme in 2020, the same year as the typical company in this theme.
The whole theme swung hardest in 2020: 16 of 36 companies on the "Worse" side.
4 other companies' latest entry also says "Mitigated".
- FY2025MitigatedAnnual report
「The company expects stable revenue because its products are not of a nature that leads to immediate contract cancellations due to fluctuations in domestic or overseas economic conditions or business trends. However, if customer companies become less willing to invest in IT, the number of new contracts could slow, potentially affecting the Group's financial position and operating results.」
The company identified weaker customer-company appetite for IT investment as an ongoing risk, while noting as a mitigating factor that existing contracts are not of a nature that leads to immediate cancellation. - FY2023-Q2RestatedAnnual report
「During the cumulative second quarter of the current consolidated fiscal year, there was no new occurrence of business or other risks, nor any material change in the business or other risks described in the annual securities report for the previous consolidated fiscal year.」
The company concluded that there had been no new occurrence or material change regarding the risk of weaker customer-company appetite for IT investment. - FY2023-Q1RestatedAnnual report
「During the cumulative first quarter of the current consolidated fiscal year, there was no new occurrence of business or other risks, nor any material change in the business or other risks described in the annual securities report for the previous consolidated fiscal year.」
The company concluded that there had been no new occurrence or material change regarding the risk of weaker customer-company appetite for IT investment. - FY2022MitigatedAnnual report
「There has been no material adverse impact from the novel coronavirus recently. However, if the novel coronavirus spreads again and its effects intensify, it could affect the Group's operating results and medium-term growth prospects.」
The company's view has changed to reflect no recent adverse impact from weaker customer-company appetite for IT investment due to the novel coronavirus, while the possibility of an impact if infections spread again remains. - FY2022-Q3RestatedAnnual report
「During the first 3 quarters of the current consolidated fiscal year, there were no new business or other risks, nor any material changes to the business and other risks described in the annual securities report for the previous consolidated fiscal year.」
The company concluded that there had been no new occurrence or material change regarding the risk of weaker customer-company appetite for IT investment. - FY2022-Q1RestatedAnnual report
「During the cumulative first quarter of the current consolidated fiscal year, there was no new occurrence of business or other risks, nor any material change in the business or other risks described in the annual securities report for the previous consolidated fiscal year.」
The company concluded that there had been no new occurrence or material change regarding the risk of weaker customer-company appetite for IT investment. - FY2021MaterialisedAnnual report
「Regarding the impact of the novel coronavirus, during the fiscal year ending August 2021 some customers delayed implementation projects or reduced in small increments licenses reserved as a contingency to cut costs, but no other material adverse effects occurred.」
The company stated that customers had in fact delayed implementation projects and reduced contingency licenses, but that no other material adverse effects had occurred. - FY2021-Q3RestatedAnnual report
「Regarding the impact of the novel coronavirus, a state of emergency was reissued in April 2021 for the Tokyo metropolitan and Kansai regions, among others, and the economic environment remains uncertain. Some customers in the Group experienced delays in implementation projects, but orders remained relatively stable.」
The company stated that some customers experienced delays in implementation projects following the reissuance of a state of emergency, while orders remained relatively stable. - FY2021-Q2WorsenedAnnual report
「Regarding the impact of the novel coronavirus on the business, the reissuance of a state of emergency mainly in the Tokyo metropolitan area in January 2021 led some customers to review their appropriate staffing levels, restrain hiring and defer IT investment, and the pace of license growth in the first half of the fiscal year ending August 2021 was slightly below expectations. However, the order environment bottomed out in May 2020 and has remained firm since then, and the company recognizes the impact as temporary.」
The company disclosed that the reissuance of a state of emergency led customers to restrain hiring and defer IT investment, causing license growth to fall short of expectations. On the other hand, the order environment has remained firm since bottoming out in May 2020, and the company described the impact as temporary. - FY2021-Q1MitigatedAnnual report
「Regarding the effects of the novel coronavirus, orders have continued to recover, with May 2020 marking the bottom.」
The company stated that the adverse impact on orders that had emerged alongside the spread of the novel coronavirus was on a recovery trend after bottoming out in May 2020. - FY2020WorsenedAnnual report
「If the effects of the novel coronavirus continue over an extended period, they could affect the Group's operating results and its medium-term growth rate.」
The company disclosed that declining leads, longer sales cycles and weaker appetite for IT investment had emerged, that the duration and extent of the impact could not be reasonably estimated, and that the impact could extend to its medium-term growth rate. - FY2020-Q3MaterialisedAnnual report
「However, uncertainty about the economic outlook increased as the novel coronavirus spread, and the Group has experienced a decline in leads, longer sales cycles and weaker customer appetite for IT investment.」
The decline in customer-company appetite for IT investment emerged as an actual impact of the spread of the novel coronavirus, rather than remaining a potential risk described previously. - FY2020-Q2RestatedAnnual report
「During the six-month period ended [the current second quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
The company concluded that there had been no new occurrence or material change regarding the risk of weaker customer-company appetite for IT investment. - FY2020-Q1RestatedAnnual report
「During the three-month period ended [the current first quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」
The company concluded that there had been no new occurrence or material change regarding the risk of weaker customer-company appetite for IT investment. - FY2019RestatedAnnual report
「If customer companies become less willing to invest in IT, the number of new contracts could slow, potentially affecting the company's financial position and operating results.」
The company continues to recognize the risk of slower new-contract growth due to weaker customer-company appetite for IT investment. - FY2019-Q3RestatedAnnual report
「During the cumulative third-quarter period, there were no new business risks and no material changes in the business risks described in the annual securities report for the preceding fiscal year.」
The company concluded that there had been no new occurrence or material change regarding the risk of weaker customer-company appetite for IT investment. - FY2019-Q1RestatedAnnual report
「During the six months ended [current first quarter], there was no emergence of new business or other risks, nor any material change in the business or other risks described in the annual securities report for the previous fiscal year.」
The company concluded that there had been no new occurrence or material change regarding the risk of weaker customer-company appetite for IT investment. - FY2018First statedAnnual report
「If customer companies become less willing to invest in IT, the number of new contracts could slow, potentially affecting the company's financial position and operating results.」
While existing functionality is likely to continue being used, the company identified a slowdown in new contracts as an external-environment risk.