Sustained Growth of the Secure Cloud System Business

「As a result, revenue in the Secure Cloud System Business totaled ¥2,553.436 million, down 16.6% from the previous fiscal year, and operating profit totaled ¥410.626 million, down 37.9%.」

「As a result, revenue in the Secure Cloud System Business totaled ¥1,131.650 million, up 1.6% year on year, while segment profit totaled ¥194.796 million, down 25.6%.」

「As a result, revenue in the Secure Cloud System Business totaled ¥3,060.373 million, up 8.8% from the previous fiscal year, and operating profit totaled ¥660.982 million, up 23.1%.」

「The Secure Cloud System Business focused its sales efforts on semiconductor-related companies involved in electronic materials, semiconductor manufacturing equipment and other areas. The company’s construction of cloud infrastructure for multiple semiconductor-related manufacturers, including sales of high-performance computer equipment for cloud infrastructure, proved successful. Revenue from high-value-added products with gross margins of at least 25% reached a record ¥367 million, compared with ¥163 million in the same period of the previous year, up 124.1%. In addition, sales of cloud infrastructure for online services operated by SaaS providers and game companies, as well as core system development projects driven by continuing demand for improved operational efficiency amid labor shortages, contributed to revenue. As a result, revenue in the Secure Cloud System Business totaled ¥1,113.548 million, up 29.2% year on year, and segment profit totaled ¥261.821 million, up 330.6%.」

「Revenue in the Secure Cloud System Business totaled ¥2,811.595 million, up 14.7% from the previous fiscal year, and operating profit totaled ¥537.008 million, up 6.6%.」

「We pursued aggressive business development and further strengthened collaboration with other companies and recruitment activities. In the Secure Cloud System Business, we promoted sales of private cloud development services and successfully won a major order in April for a private cloud infrastructure project for SaaS (Timely Disclosure: Notice Regarding Major Order, 28 April 2023). Meanwhile, for a specific project carried over from the previous fiscal year, a VDI development project for a manufacturer, we strengthened the project management structure. By working with the ordering company and focusing on completing the project promptly, we are approaching its resolution.」

「However, a newly arising technical problem prolonged the response to a specific project, which left other business development somewhat under-resourced and caused revenue growth to stall. As a result, revenue in the Secure Cloud System Business totaled ¥862.078 million, down 23.4% year on year, and segment profit totaled ¥60.806 million, down 76.8%.」

「Sales activities for cloud migration solutions centered on Citrix products led to orders from SaaS providers seeking to expand their cloud environments and IT companies, including information and telecommunications companies, seeking cloud development. Together with increased revenue from a strong start in developing new customers in the Kanto region, this resulted in revenue of ¥500.388 million, up 15.6% year on year. However, in a VDI (virtual desktop) development project for a manufacturer carried over from the previous fiscal year, engineers were concentrated on addressing the project, and the prolonged project led to the recognition of a provision for loss on orders, increasing the cost of sales. As a result, segment profit totaled ¥33.814 million, down 60.5% year on year.」

「As sales of cloud infrastructure-related products to major SaaS providers in the Kanto region and resilience solutions to the public sector, including local governments and educational institutions, and mid-sized companies in the Kanto region remained firm, revenue in the Secure Cloud System Business totaled ¥2,451.638 million, compared with ¥2,151.966 million in the previous fiscal year, and operating profit totaled ¥503.904 million, compared with ¥466.841 million.」

「As a result of addressing strong cloud demand from SaaS providers and educational institutions and developing new customers in the Kanto region through partnerships, revenue in the Secure Cloud System Business totaled ¥1,670.391 million, compared with ¥1,342.892 million in the same quarter of the previous year, and segment profit totaled ¥346.685 million, compared with ¥295.230 million.」

「As a result of addressing strong cloud demand from SaaS providers, local governments and educational institutions, developing resilience systems for local governments against cyberattacks, building core systems for food manufacturers seeking DX, and developing new customers in the Kanto and Kansai regions, revenue in the Secure Cloud System Business totaled ¥1,125.952 million and segment profit totaled ¥262.418 million.」

「As a result of promoting sales activities to address strong cloud demand from SaaS providers and local governments, selling resilience solutions to companies, and moving the core systems of companies seeking DX to the cloud through partnerships, revenue in the Secure Cloud System Business totaled ¥432.944 million, compared with ¥399.280 million in the same quarter of the previous year, and segment profit totaled ¥85.666 million, compared with ¥69.225 million.」

「Following the launch of the Tokyo Sales Division, the pace of sales expansion for cloud infrastructure-related products to major SaaS providers in the Kanto region accelerated. On the profit side, high-value-added projects, including resilience solution sales and hyperconverged infrastructure development, contributed. ... Operating profit totaled ¥466.841 million, up 0.6% from the previous fiscal year, setting a new segment record.」

「Although orders from major SaaS companies were strong, the company was unable to cover lost orders in certain regions where business travel had been restricted to prevent the spread of COVID-19. As a result, revenue in the Secure Cloud System Business totaled ¥1,342.892 million, down 22.9% year on year, and segment profit totaled ¥295.230 million, down 16.4%.」

「As efforts to develop demand for and enhance the value of resilience solutions, renew systems for strong mid-sized companies, and secure orders for cloud infrastructure development for SaaS providers progressed steadily, revenue in the Secure Cloud System Business totaled ¥952.175 million, down 18.6% year on year, and segment profit totaled ¥218.614 million, down 13.0%.」

「As sales performance in the Tokyo area recovered to a level above the year-earlier period sooner than planned, the declines in revenue and profit were narrower than initially expected.” As orders received by the Tokyo Sales Division established during the fiscal year progressed steadily, revenue in the Secure Cloud System Business totaled ¥399.280 million, down 17.7% year on year, and segment profit totaled ¥69.225 million, down 39.1%.」

「By capturing demand from mid-sized companies for “moving core systems to the cloud” and “DX to overcome the 2025 cliff,” performance during the fiscal year under review was steady, with the Secure Cloud System Business serving as the core business. Revenue in the Secure Cloud System Business totaled ¥2,241.940 million, up 35.8% from the previous fiscal year, and operating profit totaled ¥464.163 million, up 29.5%.」

「As this environment continued to support demand for “moving core systems to the cloud” and “DX to overcome the 2025 cliff,” performance during the cumulative third quarter under review was steady, with the Secure Cloud System Business serving as the core business. As orders from strong local corporate customers and major SaaS companies progressed steadily, revenue in the Secure Cloud System Business totaled ¥1,741.733 million, up 56.3% year on year, and segment profit totaled ¥353.246 million, up 37.5%.」

「As a result of this dynamic change in the business environment supporting demand for “moving core systems to the cloud” and “DX to overcome the 2025 cliff,” performance during the cumulative second quarter under review was steady, led by the Secure Cloud System Business. As orders from strong local corporate customers progressed steadily, revenue in the Secure Cloud System Business totaled ¥1,169.275 million and segment profit totaled ¥251.322 million.」

「This favorable environment led to strong demand for “moving core systems to the cloud” and “DX to overcome the 2025 cliff” in the Secure Cloud Business, resulting in steady performance during the cumulative first quarter under review, led by the Secure Cloud System Business.」

「We will continue to grow our core Secure Cloud System Business,」