Unprofitable Projects and Delivery Delays
First written in FY2016. 11 of 26 entries say "Restated". Latest entry: 2026-08-07.
Focus Systems 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 2024: 17 of 55 companies on the "Worse" side.
17 other companies' latest entry also says "Materialised".
- 2026-08-07MaterialisedEarnings presentation
「The cost increase was caused by the impact of delays in the progress of large-scale projects.」
Delays in large-scale projects and higher costs were specifically cited as factors behind the first-quarter decline in enterprise-business profit, adding actual examples of risks involving unprofitable projects and delivery delays. - FY2026MitigatedAnnual report
「We have strengthened our review process before accepting large-scale, highly complex projects and rigorously assess the validity of estimates and technical feasibility. After projects become operational, we continuously monitor progress and incurred costs to identify and correct signs of deteriorating profitability at an early stage, while also promoting the development of project managers.」
The response to unprofitable projects has been specified in terms of pre-order reviews, estimate and technical assessments, post-launch cost monitoring, early corrective action and PM development. - 2026-05-15MitigatedEarnings
「To prevent deterioration in profitability and secure an appropriate level of profit, we have strengthened our review system before accepting large and highly complex projects, rigorously evaluating the appropriateness of estimates and technical feasibility. After projects begin, we continuously monitor progress and costs incurred to identify and correct early signs of unprofitability, while developing project managers and working to improve the organization’s ability to complete projects.」
Responses to the risk of projects becoming unprofitable have been specified as pre-award reviews, evaluation of estimates and technical feasibility, post-launch monitoring, and project manager development. - FY2026-H1MitigatedAnnual report
「This was mainly due to the rebound following low-margin projects in the previous interim accounting period, as well as the success of cross-selling and upselling in the ERP business.」
The impact of the low-margin projects that arose in the previous interim period reversed, contributing to a recovery in profit in the Enterprise business during the current interim period. - FY2025MitigatedAnnual report
「The company grew steadily as the rebound in profits following unprofitable projects in the previous fiscal year, a shift toward higher-margin projects and quality improvements from consistent project monitoring proved effective.」
Following the unprofitable projects in the previous fiscal year, quality improved through project monitoring and the shift toward higher-margin projects, which is stated to have led to a recovery in profits in the Wide-Area Solutions business. - FY2025-H1MitigatedAnnual report
「Although personnel and subcontracting costs increased in some development projects, the rebound in profits following the impact of unprofitable projects in the previous fiscal year, together with project progress in line with plan, resulted in higher revenue and higher profit.」
Although personnel and subcontracting costs increased in some development projects, the profit impact of the previous fiscal year's unprofitable projects reversed, and the projects progressed as planned, according to the disclosure. - FY2024MaterialisedAnnual report
「Although an unprofitable project received as a prime contractor arose, profits were driven up mainly by public-sector-related business as a whole, large-scale private-sector contract projects and the infrastructure business, resulting in a significant recovery from the start of the fiscal year, when profits had initially fallen sharply year on year.」
The occurrence of an unprofitable project received as a prime contractor is cited as an actual factor in annual performance. The recovery driven by public-sector-related business, large-scale contract projects and the infrastructure business is also noted. - FY2024-Q3MaterialisedAnnual report
「This was mainly due to a significant increase in labor costs, subcontracting costs and other expenses associated with the unprofitable project that arose.」
An unprofitable project actually occurred in the Wide-Area Solutions business during the cumulative third quarter and became a source of a ¥26 million segment loss through increases in labor costs, subcontracting costs and other expenses. - FY2024-Q2MaterialisedAnnual report
「As the business continues to expand, an unprofitable project received as a prime contractor arose. However, based on monitoring actual costs, we revised the project plan and expect to launch the service during the current fiscal year without changing the delivery schedule. The project is also expected to be brought to a close.」
An unprofitable project received as a prime contractor actually occurred and became a source of losses in the Wide-Area Solutions business. Actual costs are being monitored and the plan has been revised, with the service scheduled to launch during the current fiscal year without changing the delivery schedule. A provision for contract losses of ¥94.195 million has also been recognized. - FY2024-Q1MaterialisedAnnual report
「This was mainly due to increases in labor costs, subcontracting costs and other expenses resulting from unprofitable projects.」
An unprofitable project actually occurred and became a source of losses in the Wide-Area Solutions business through increases in labor costs, subcontracting costs and other expenses. At the same time, it is stated that the project is expected to be brought to a close. - FY2022MitigatedAnnual report
「For contracts expected to generate losses, we recognize the estimated loss to provide for future losses. However, no provision was recognized as of the end of the current fiscal year because there was no estimated loss at that date.」
The company describes its treatment of recognizing estimated losses in response to unprofitable projects, while stating that there was no estimated loss at the end of the current fiscal year. - 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 are no material changes regarding unprofitable projects and delivery delays. - 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 are no material changes regarding unprofitable projects and delivery delays. - FY2020MitigatedAnnual report
「We are working to improve estimate accuracy when taking orders, tighten our order screening meetings, and enhance progress and quality management after orders are received.」
To avoid unprofitable projects and minimize their impact, the company is strengthening estimate accuracy, order screening, and post-order progress and quality management. - 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 are no material changes regarding unprofitable projects and delivery delays. - 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 are no material changes regarding unprofitable projects and delivery delays. - 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.」
It is treated as having no material changes regarding unprofitable projects and delivery delays. - 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.」
It is treated as having no material changes regarding unprofitable projects and delivery delays. - FY2018MitigatedAnnual report
「In response to the deterioration in profitability caused by project delays in the previous fiscal year, we thoroughly implemented measures to prevent recurrence and tightened our order screening meetings. These efforts were successful, and profit margins improved significantly.」
The risks of unprofitable projects and delivery delays continue to be disclosed, while profitability is stated to have improved as a result of measures to prevent a recurrence of the delays in the previous fiscal year and stricter order screening. - FY2018-Q3RestatedAnnual report
「There were no new events among the matters described in this quarterly report concerning the business and financial conditions that could materially affect investors' decisions, and no material changes to the matters described under "Business and Other Risks" in the annual securities report for the previous fiscal year.」
No material change is considered to have occurred regarding unprofitable projects and delivery delays. - FY2018-Q2RestatedAnnual report
「There were no new events among the matters described in this quarterly report concerning the business and financial conditions that could materially affect investors' decisions, and no material changes to the matters described under "Business and Other Risks" in the annual securities report for the previous fiscal year.」
No material change is considered to have occurred regarding unprofitable projects and delivery delays. - FY2017MaterialisedAnnual report
「Costs increased due to delays in progress on some projects.」
Delays in project progress and the resulting increase in costs are cited as actual performance factors. - FY2017-Q3RestatedAnnual report
「There were no new events among the matters described in this quarterly report concerning the business and financial conditions that could materially affect investors' decisions, and no material changes to the matters described under "Business and Other Risks" in the annual securities report for the previous fiscal year.」
It is treated as having no material changes regarding unprofitable projects and delivery delays. - FY2017-Q2RestatedAnnual report
「There were no new events among the matters described in this quarterly report concerning the business and financial conditions that could materially affect investors' decisions, and no material changes to the matters described under "Business and Other Risks" in the annual securities report for the previous fiscal year.」
It is treated as having no material changes regarding unprofitable projects and delivery delays. - FY2017-Q1RestatedAnnual report
「There have been no material changes to the “Business and Other Risks” described in the annual securities report for the previous fiscal year.」
No material change is considered to have occurred regarding unprofitable projects and delivery delays. - FY2016First statedAnnual report
「If deviations from the initially estimated amounts or problems with project management result in unexpected costs or damages associated with delivery delays, this could affect the Company's operating results, financial position and other factors.」
Deviations from estimates, project management, costs and delivery schedules in contract development are identified as risks.