Worth reading
75Important
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
259
¥ millionWording
Conditional
How definitive the wording is.Contents of this document
Presentation materials on financial resultsFirst quarter of the fiscal year ending March 202710 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥3,008 million+9.4%
Operating profit¥-7 million
Ordinary income¥-11 million
Net income¥-105 million
Operating profit margin-0.2 %
Selling, general and administrative expenses¥818 million
Results for the three months of the current quarter
Net Sales
¥3,008 million
Operating profit
¥-7 million
Ordinary income
¥-11 million
Profit attributable to owners of parent for the quarter
¥-105 million
Full-year earnings forecast
Net Sales
¥14,160 million
Operating profit
¥970 million
EBITDA
¥1,270 million
Ordinary income
¥950 million
Profit attributable to owners of the parent
¥610 million
Earnings per share
¥30.76
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Operating profit came in above the internal planBreakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Revenue increase/decrease impact¥73 million
- Change in gross profit margin¥-41 million
- Changes in selling, general and administrative expenses¥-138 million
- Increase in R&D expenses associated with investment in generative AI development¥-40 million
- Higher Advertising Expenses¥-13 million
- Increase in fees paid¥-13 million
- Increase in expenses following the launch of the shareholder benefit program¥-10 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Prepared based on available information, forecasts and other factors. Specific figures for foreign exchange rates, raw material prices and other items are Not disclosedNew initiatives
- Execution of a collaboration agreement with Shiga University in the fields of data science and AI
- Launch of バルテス・ソリューションズ＆AI株式会社
- Launch of the full version of the document quality analysis AI tool "QuintSpect"
- ¥1.2 billion investment over 3 years in the development of generative AI testing tools
Key KPIsA metric the company considers important as a management benchmark.
- Software testing fee (monthly)¥838 thousandYear on year against the same period last year+¥11 thousand
- Total number of projects1,792 EngagementsYear on year against the same period last year+117 projects
- Number of tool-related projectsYear on year against the same period last year+70 projects
- Engineers assigned to projects (consolidated)1,385 PeopleYear on year against the same period last year+145 people
- Full-time employees (active engineers)Year on year against the same period last year+31 people
Unit price and quantity metricsThese figures show sales broken down by price and volume.
- Software testing fee (monthly)¥838 thousandYear on year against the same period last year+¥11 thousand
- Active engineers1,385 PeopleYear on year against the same period last year+145 people
Segment results
- Software TestingNet Sales¥2,621 millionRevenue YoY (%)10.8Operating profit¥52 millionOperating Profit YoY (%)-61.6
- DevelopmentNet Sales¥463 millionRevenue YoY (%)-1.9Operating profit¥-33 million
- SecurityNet Sales¥41 millionRevenue YoY (%)-25.3Operating profit¥-12 million
Medium-term management plan targets
- Target fiscal yearFY2026Consolidated revenue¥14.16 billionConsolidated operating profit¥970 million
- Target fiscal yearFY2027Consolidated revenue¥17.00 billionConsolidated operating profit¥1.88 billion
- ¥1.2bnTargetInvestment in generative AI testing tool developmentPeriod3 years
Market Size / Share
- Size of Japan's software testing market¥6.2 trillion
- Industry share of listed companies engaged in the testing business1 %
Number of employees
Number of EmployeesMore than 500 permanent employees (as stated in the company overview)
Change during the periodPermanent employees assigned as engineers increased by 31 year on year
| Item | Details |
|---|---|
| Document type | Presentation materials on financial results |
| Fiscal Period Covered | First quarter of the fiscal year ending March 2027 |
| Net Sales | ¥3,008 million (YoY +9.4%) |
| Operating profit | ¥-7 million |
| Ordinary income | ¥-11 million |
| Net income | ¥-105 million |
| Operating profit margin | -0.2 % |
| Selling, general and administrative expenses | ¥818 million |
| Results for the three months of the current quarter | Net Sales ¥3,008 million / Operating profit ¥-7 million / Ordinary income ¥-11 million / Profit attributable to owners of parent for the quarter ¥-105 million |
| Full-year earnings forecast | Net Sales ¥14,160 million / Operating profit ¥970 million / EBITDA ¥1,270 million / Ordinary income ¥950 million / Profit attributable to owners of the parent ¥610 million / Earnings per share ¥30.76 |
| Self-assessment against the plan | Operating profit came in above the internal plan |
| Segment results | Segment Software Testing / Net Sales ¥2,621 million / Revenue YoY (%) 10.8 / Operating profit ¥52 million / Operating Profit YoY (%) -61.6, Segment Development / Net Sales ¥463 million / Revenue YoY (%) -1.9 / Operating profit ¥-33 million, Segment Security / Net Sales ¥41 million / Revenue YoY (%) -25.3 / Operating profit ¥-12 million |
| Breakdown of Factors Affecting the Change | Factors Revenue increase/decrease impact / Amount ¥73 million, Factors Change in gross profit margin / Amount ¥-41 million, Factors Changes in selling, general and administrative expenses / Amount ¥-138 million, Factors Increase in R&D expenses associated with investment in generative AI development / Amount ¥-40 million, Factors Higher Advertising Expenses / Amount ¥-13 million, Factors Increase in fees paid / Amount ¥-13 million, Factors Increase in expenses following the launch of the shareholder benefit program / Amount ¥-10 million |
| Key KPIs | Indicator name Software testing fee (monthly) / Value ¥838 thousand / Year on year against the same period last year +¥11 thousand, Indicator name Total number of projects / Value 1,792 Engagements / Year on year against the same period last year +117 projects, Indicator name Number of tool-related projects / Value Not disclosed / Year on year against the same period last year +70 projects, Indicator name Engineers assigned to projects (consolidated) / Value 1,385 People / Year on year against the same period last year +145 people, Indicator name Full-time employees (active engineers) / Value Not disclosed / Year on year against the same period last year +31 people |
| Unit price and quantity metrics | Indicator name Software testing fee (monthly) / Value ¥838 thousand / Year on year against the same period last year +¥11 thousand, Indicator name Active engineers / Value 1,385 People / Year on year against the same period last year +145 people |
| Number of employees | Number of Employees More than 500 permanent employees (as stated in the company overview) / Change during the period Permanent employees assigned as engineers increased by 31 year on year |
| Assumptions Underlying the Business Outlook | Prepared based on available information, forecasts and other factors. Specific figures for foreign exchange rates, raw material prices and other items are Not disclosed |
| Medium-term management plan targets | Target fiscal year FY2026 / Consolidated revenue ¥14.16 billion / Consolidated operating profit ¥970 million, Target fiscal year FY2027 / Consolidated revenue ¥17.00 billion / Consolidated operating profit ¥1.88 billion, Target Investment in generative AI testing tool development / Period 3 years / Amount ¥1.2bn |
| Market Size / Share | Indicator Size of Japan's software testing market / Value ¥6.2 trillion, Indicator Industry share of listed companies engaged in the testing business / Value 1 % |
| New initiatives | Execution of a collaboration agreement with Shiga University in the fields of data science and AI, Launch of バルテス・ソリューションズ＆AI株式会社, Launch of the full version of the document quality analysis AI tool "QuintSpect", ¥1.2 billion investment over 3 years in the development of generative AI testing tools |
Items this document does not state (11)
Gross Profit MarginProgress against full-year forecastNumber of stores and locationsRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresOrders received and order backlogKey points of the Q&A
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Revenue increased as the number of projects grew on the back of improvements to the sales and delivery structure. Expenses increased because of training costs associated with expanded recruitment, investment in generative AI development, increased marketing activities, and shareholder benefit program costs. Net income attributable to owners of the parent declined due to impairment losses on investments.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.