Earnings Pressure from Price Competition and Demands for High Quality
First written in FY2018. 7 of 15 entries say "Restated". Latest entry: FY2026.
Focus Systems moved to the "Worse" side of this theme in 2020, 3 years before the typical company in this theme (2023).
The whole theme swung hardest in 2026: 10 of 18 companies on the "Worse" side.
8 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The use of AI entails the possibility of inappropriate use, in addition to technical challenges such as information leakage through the reuse of training data, infringement of third-party intellectual property rights, hallucinations (generation of false information) and the introduction of vulnerabilities.」
In addition to risks related to pricing and the competitive environment, specific risks associated with the rapid adoption of AI have been identified, including information leakage, intellectual property infringement, hallucinations, vulnerabilities and inappropriate use. - FY2025RestatedAnnual report
「Intensifying competition with competitors and fluctuations in the system development market may slow growth even in our areas of strength.」
The risk of slower growth due to intensifying competition with competitors and fluctuations in the system development market has been reaffirmed. - FY2023WorsenedAnnual report
「In addition, intensifying competition with competitors and fluctuations in the system development market may slow growth even in our areas of strength.」
In addition to price and labor competition, the risks of slower growth due to intensifying competition with competitors and fluctuations in the system development market have been explicitly identified. - FY2022-Q3RestatedAnnual report
「During the cumulative third quarter of the current fiscal year, there were no occurrences of matters concerning the business situation, accounting situation or other matters described in the quarterly report that could have a material impact on investors’ decisions, and no material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
It is stated that there has been no material change in relation to profit pressure from price competition and competition for human resources. - FY2022-Q2RestatedAnnual report
「During the cumulative second quarter of the current fiscal year, there were no occurrences of matters concerning the business situation, accounting situation or other matters described in the quarterly report that could have a material impact on investors’ decisions, and no material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
It is stated that there has been no material change in relation to profit pressure from price competition and competition for human resources. - FY2021MaterialisedAnnual report
「As a result, revenue was ¥5,814 million, down 6.5% year on year. Segment profit (operating profit) was ¥555 million, down 20.5% year on year.」
Lower revenue from digital forensics products, against a backdrop including intensifying competition, materialized as annual revenue and profit declines in the Innovation business. - FY2021-Q3MaterialisedAnnual report
「This was because IT service projects, including infrastructure design and construction, operations and maintenance, generally progressed as planned, while revenue from digital forensics products declined.」
Lower revenue from digital forensics products has appeared in actual results as lower revenue and profit in the Innovation business. - FY2021-Q2MaterialisedAnnual report
「This was because IT service projects, including infrastructure design and construction, operations and maintenance, generally progressed as planned, while the company was reviewing its business strategy in response to intensifying competition in some areas of the security field.」
It is stated that intensifying competition in the security field led to a review of business strategy and lower revenue and profit in the Innovation business. - FY2021-Q1MaterialisedAnnual report
「This was because IT service projects, including infrastructure design and construction, operations and maintenance, generally progressed as planned, while sales of digital forensics products declined amid intensifying competition.」
In digital forensics, intensified competition emerged as a slump in actual product sales and became a factor in lower revenue and profit in the Innovation business. - FY2020WorsenedAnnual report
「In digital forensics, intensifying competition driven by rising demand for cybersecurity led to multiple large projects being secured with priority given to reliably winning orders to expand market share rather than to profit, among other factors, resulting in a decline in profit margins.」
Intensifying competition accompanying rising demand for security has been explicitly identified, and large projects prioritized to expand market share have led to lower profit margins. - FY2020-Q2RestatedAnnual report
「During the cumulative second quarter of the current fiscal year, there were no occurrences of matters concerning the business situation, accounting situation or other matters described in the quarterly report that could have a material impact on investors’ decisions, and no material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
It is stated that there has been no material change in relation to profit pressure from price competition and competition for human resources. - FY2020-Q1RestatedAnnual report
「During the cumulative first quarter of the current fiscal year, there were no occurrences of matters concerning the business situation, accounting situation or other matters described in the quarterly report that could have a material impact on investors’ decisions, and no material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
It is stated that there has been no material change in relation to profit pressure from price competition and competition for human resources. - FY2019-Q3RestatedAnnual report
「During the cumulative third quarter of the current fiscal year, there were no occurrences of matters concerning the business situation, accounting situation or other matters described in the quarterly report that could have a material impact on investors’ decisions, and no material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
No material change is treated as having occurred in relation to profit pressure from price competition and competition for human resources. - FY2019-Q2RestatedAnnual report
「During the cumulative second quarter of the current fiscal year, there were no occurrences of matters concerning the business situation, accounting situation or other matters described in the quarterly report that could have a material impact on investors’ decisions, and no material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
No material change is treated as having occurred in relation to profit pressure from price competition and competition for human resources. - FY2018First statedAnnual report
「Competition for prices and for securing human resources remains intense.」
Although information technology investment remains high, intense competition on price and quality has been identified as a new risk that could affect profitability and order intake.