Margin Deterioration Due to Prolonged Development and Specification Changes
First written in FY2021. 2 of 4 entries say "Materialised", first in FY2024-Q2. Latest entry: FY2026.
Cybertrust Japan moved to the "Worse" side of this theme in 2023, 1 year after the typical company in this theme (2022).
The whole theme swung hardest in 2017: 9 of 33 companies on the "Worse" side.
22 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「For projects involving system development by the Group, there is a risk that development will be prolonged and margins will deteriorate due to defects in developed systems or changes to customer specifications.」
The Company continues to address the risk of margin deterioration from prolonged system development and specification changes through process management, quality improvement and negotiations over compensation. - FY2024MaterialisedAnnual report
「Although the Company received inquiries for large projects from Japanese manufacturers expanding into global markets, sales were ¥1,128 million, down 4.1% year on year, as the development of necessary collaboration partners to address the expanded scope of operations was delayed and new customer acquisition remained sluggish.」
Delays in developing collaboration partners to address the expanded scope of operations have materialized as sluggish new customer acquisition and a decline in IoT services revenue. - FY2024-Q2MaterialisedAnnual report
「In contracted development, the closing of contracted development projects involving customization of EMLinux was delayed due to changes in the customer's product development and production schedule.」
Changes in the customer's schedule actually delayed the closing of contracted development projects involving EMLinux customization. No impact on margins was stated. - FY2021First statedAnnual report
「There is a risk that development could be prolonged and margins could deteriorate if defects arise in developed systems or customers change their specifications.」
Lists project management, process management, quality improvement and negotiations over compensation when specifications change as countermeasures.