Occurrence of Unprofitable Projects
First written in FY2022. 8 of 15 entries say "Mitigated", first in FY2023-Q2. Latest entry: 2026-08-13.
The whole theme swung hardest in 2024: 17 of 57 companies on the "Worse" side.
13 other companies' latest entry also says "Worsened".
- 2026-08-13WorsenedResults presentation
「一方、進行中の一部プロジェクトにおいて品質・進捗面での対応を優先したことにより、後続案件の積み増しに至らなかった案件がありました。」
進行中の一部プロジェクトで品質・進捗対応が優先され、後続案件の積み増しに至らない案件が発生した。あわせて、一時的なリソース追加により売上総利益率と営業利益率が低下したことが記載された。 - FY2026RestatedAnnual report
「For our cloud integration services, we prepare estimates based on the expected difficulty and work hours for each project, and accept projects after securing an appropriate profit margin. We manage staffing, progress and budgets to prevent discrepancies between the specifications required by customer companies and estimated work hours.」
We continue to describe estimates, securing profit margins, and staffing, progress and budget management in response to the risk of unprofitable projects. - FY2026-H1MitigatedAnnual report
「A high gross profit margin was achieved through sound project management based on rigorous operational execution and optimized engineer assignments.」
We continue to manage and address unprofitable projects through sound project management based on rigorous operational execution and optimized engineer assignments. - FY2024MitigatedAnnual report
「In the fiscal year ended March 2024, each project progressed soundly, resulting in an improvement in gross profit margin to 43.6%.」
Following the impact of the unprofitable project and project losses incurred in the previous fiscal year, each project progressed soundly, and the gross profit margin improved from 38.8% to 43.6%. - FY2024-Q2MitigatedAnnual report
「The unprofitable project that arose in the third quarter of the fiscal year ended March 2023 was brought to completion in the second quarter as scheduled, and profitability improved.」
The unprofitable project that arose in the third quarter of the previous fiscal year was brought to completion in the second quarter as scheduled, and profitability improved. - FY2024-Q1Delivery completed, additional work ongoingAnnual report
「The unprofitable project that arose in the third quarter of the fiscal year ended March 2023 completed delivery acceptance at the end of the first quarter as scheduled. However, some additional work arose and had to be addressed in the second quarter.」
The unprofitable project that arose in the third quarter of the previous fiscal year completed delivery acceptance as scheduled, while some additional work was carried over to the second quarter. - FY2023-Q3MaterialisedAnnual report
「Although the one-time increase in costs caused by the decline in project quality in the first quarter has subsided, a new project requiring additional development resources arose, and a project loss was recognized in the third quarter. Expected future losses have been recognized as an expense for the provision for order losses, and we expect profitability to improve from the fourth quarter onward.」
While the one-time increase in costs in the first quarter subsided, a new project incurred losses, and an expense for the provision for order losses was recognized. - FY2023-Q2MitigatedAnnual report
「The one-time increase in costs from additional resources incurred in the first quarter accounting period subsided in the second quarter accounting period as expected, and we expect profitability to reach the planned level from the third quarter onward.」
The one-time increase in costs from additional resources incurred in the first quarter subsided in the second quarter as expected. - FY2023-Q1MaterialisedAnnual report
「However, when we established an organizational structure designed to support further growth, orders exceeded capacity, and planned work hours were exceeded on some projects to ensure development quality, increasing costs through the addition of resources. Although this was a one-time factor, we expect conditions to improve in the second quarter and profitability to recover to the planned level in the third quarter.」
The work-hour overruns that had previously been identified as a risk of unprofitable projects actually occurred, resulting in higher costs from additional resources. We expect conditions to improve in the second quarter and profitability to recover in the third quarter. - FY2022First statedAnnual report
「We manage staffing, progress and budgets to prevent discrepancies between the specifications required by customer companies and estimated work hours. However, if unexpected defects or other issues cause development hours to increase substantially, resulting in unprofitable projects, our financial condition and operating results may be affected.」
While managing staffing, progress and budgets, we identify unprofitable projects resulting from increased work hours as a risk.