Improving Profitability Through Cost-Cutting Measures
First written in FY2017-Q1. 12 of 27 entries say "Worsened", first in FY2020. Latest entry: 2026-06-12.
Access moved to the "Worse" side of this theme in 2020.
0 other companies' latest entry also says "Worsened".
- 2026-06-12WorsenedEarnings
「Because some projects are expected to incur higher costs in the future, we conservatively estimated and recorded those costs, which also resulted in lower segment profit.」
Conservative estimates and recognition of future costs for certain projects reduced segment profit in the IoT business. - FY2026WorsenedAnnual report
「As a result, the increase in revenue from expansion in the IoT business made a significant contribution, and the network business also achieved business results such as orders totaling US$70 million from Evollabs Tech FZ-LLC (hereinafter, “Evollabs”). However, upfront investment in research and development and other areas increased.」
While the network business achieved orders, upfront investment in research and development and other areas increased, causing its segment loss to widen from ¥2.488 billion to ¥3.149 billion. - FY2025WorsenedAnnual report
「In the network business, segment losses widened as revenue growth was slower than expected and development costs and other expenses increased.」
In the network business, revenue growth was delayed and development costs increased, causing the segment loss to widen from ¥1.836 billion in the previous fiscal year to ¥2.488 billion. - FY2025-Q1WorsenedAnnual report
「Revenue was broadly flat year on year, while segment profit declined slightly, partly due to higher costs for certain projects.」
In the IoT business, revenue remained broadly flat, while higher costs for certain projects contributed to the slight decline in segment profit. - FY2024-Q3MitigatedAnnual report
「Meanwhile, segment profit and loss improved year on year, partly due to lower costs.」
In the IoT business, lower costs contributed to narrowing the segment loss from ¥107 million to ¥48.29 million. The specific effect of cost improvements was disclosed. - FY2024-Q1MitigatedAnnual report
「Meanwhile, segment profit returned to profitability as a result of increased sales in the IoT field and lower fixed costs in the digital publishing field.」
The company explained that lower fixed costs in the digital publishing field contributed to the IoT business returning to segment profitability, indicating improved profitability despite the downward pressure on profit from previous investment and structure-strengthening costs. - FY2023MitigatedAnnual report
「We will review investment levels as necessary while closely monitoring market trends and business conditions, and work to maintain and improve profitability.」
While the cost burden associated with growth investment continues, profitability management through reviewing investment levels in line with market and business conditions also continued, and segment profit improved across all segments. - FY2023-Q3WorsenedAnnual report
「On the cost side, personnel expenses and software depreciation expenses and other costs associated with strengthening the structure continue to increase, but」
Increases in personnel expenses and software depreciation expenses and other costs associated with strengthening the structure continue, and the cost burden associated with profitability improvements through cost-cutting remains. - FY2023-Q2WorsenedAnnual report
「On the cost side, personnel expenses and software depreciation expenses and other costs associated with strengthening the structure increased.」
In the network business, personnel expenses and software depreciation expenses and other costs associated with strengthening the structure continue to increase, weighing on profitability. - FY2023-Q1WorsenedAnnual report
「In addition, personnel expenses and other costs associated with strengthening the structure increased, as did depreciation expenses for software and other items.」
In the network business, personnel expenses and software depreciation expenses and other costs associated with strengthening the structure increased, and the cost burden associated with profitability improvements through cost-cutting continues. - FY2022AdvancedAnnual report
「Reviewing investment levels in line with market and business conditions and working to improve profitability」
In addition to conventional cost reductions, profitability management was put into practice by reviewing investment levels in the digital publishing and automotive infotainment fields in line with market and business conditions. The domestic business posted segment profit of ¥106 million, returning to profitability from a loss of ¥540 million in the previous year. - FY2022-Q3WorsenedAnnual report
「Because higher personnel expenses and software depreciation expenses associated with strengthening the structure outweighed the increase in revenue, the segment loss widened year on year.」
In the network business, increases in personnel expenses and software depreciation expenses associated with strengthening the structure outweighed the benefit of higher revenue, resulting in a wider segment loss. - FY2022-Q2WorsenedAnnual report
「Higher personnel expenses and software depreciation expenses associated with strengthening the structure outweighed the increase in revenue, resulting in higher revenue but lower profit in the network business.」
In the network business, increases in personnel expenses and software depreciation expenses associated with strengthening the structure outweighed the benefit of higher revenue, increasing the cost burden on profitability improvements. - FY2022-Q1AdvancedAnnual report
「In the digital publishing field, existing services remained solid, but the company prioritized reviewing its cost structure and worked to improve profitability. These factors driving revenue growth resulted in higher revenue and profit year on year.」
Measures prioritizing a review of the cost structure continued in the digital publishing field, and the domestic business’s segment loss narrowed from ¥364 million in the same period of the previous year to ¥170 million. - FY2021-Q3AchievedAnnual report
「At present, we have completed cutting all unnecessary and non-urgent expenses, but」
The company explicitly states that it has completed cutting unnecessary and non-urgent expenses. However, it plans to continue investing in the 5G and DX fields, meaning that growth investment will continue after the cost reductions are complete. - FY2021-Q2WorsenedAnnual report
「Although various expense-reduction measures were implemented in light of these circumstances, their effects were limited because most of the company’s costs are fixed costs, such as personnel expenses and depreciation expenses.」
Expense-reduction measures were implemented, but their effects were limited because fixed costs account for a large proportion of total costs, constraining further profitability improvements through conventional cost-cutting. - FY2021-Q1WorsenedAnnual report
「In addition, depreciation expenses associated with investment in product development and other areas, as well as higher costs associated with strengthening the structure for business expansion, came first.」
Higher costs associated with product development investment and strengthening the structure for business expansion continue to come first, weighing on profitability. - FY2020WorsenedAnnual report
「In the current consolidated fiscal year, revenue increased year on year in both the web platform and digital publishing fields. However, higher depreciation expenses associated with increased product development investment and higher costs to strengthen the sales and administrative structure came first, resulting in higher revenue but lower segment profit for the segment as a whole compared with the previous fiscal year.」
Higher costs related to product development investment and strengthening the sales and administrative structure came first, and segment profit in the domestic business declined from ¥670 million to ¥643 million despite higher revenue. The burden of growth investment is more prominent than profitability improvements from cost-cutting. - FY2019AdvancedAnnual report
「Operating income increased by ¥120 million, or 29.2% year on year, to ¥534 million, due to higher revenue and lower cost of sales resulting from thorough cost reductions.」
The company explained that lower cost of sales resulting from thorough cost reductions, together with increased revenue, contributed to operating profit of ¥534 million, up 29.2% year on year. - FY2018RestatedAnnual report
「Selling, general and administrative expenses decreased by ¥80 million, or 2.7% year on year, from the previous consolidated fiscal year to ¥2.858 billion.」
Selling, general and administrative expenses declined by ¥80 million, or 2.7%. While improvements in profitability through cost-cutting can be confirmed, profit declined in the domestic business due to the sales mix and accelerated amortization. - FY2017AdvancedAnnual report
「Selling, general and administrative expenses decreased by ¥446 million, or 13.2% year on year, from the previous consolidated fiscal year as a result of business restructuring initiatives, to ¥2.939 billion.」
Regarding business restructuring and SG&A reductions, SG&A expenses declined by ¥446 million, or 13.2%, while segment profit in the domestic software business increased to ¥601 million. - FY2017-Q3RestatedAnnual report
「Although revenue in the digital publishing field was broadly flat compared with the same quarter of the previous year, revenue increased in the IoT field, and the effects of a series of cost-cutting measures implemented in the previous fiscal year improved segment profit and loss, resulting in a return to profitability.」
The domestic software business has remained profitable, supported by cost-cutting measures taken in the previous fiscal year and increased revenue in the IoT field. Segment profit for the nine months ended the third quarter was ¥283.36 million. - FY2017-Q2AdvancedAnnual report
「Revenue increased in the IoT field, and together with the effects of a series of cost-cutting measures implemented in the previous fiscal year, this improved segment profit and loss, resulting in a return to profitability.」
Segment profit and loss in the domestic software business improved from a loss of ¥85.89 million in the same period of the previous year to profit of ¥208.77 million in the current period, resulting in a return to profitability. The effects of cost-cutting measures and increased revenue in the IoT field were cited as specific results. - FY2017-Q1First statedAnnual report
「Segment profit and loss improved as a result of a series of cost-cutting measures implemented in the previous fiscal year.」
The company explained that cost-cutting measures implemented in the previous fiscal year contributed to improving segment profit and loss in the domestic software business. In the overseas business, it expects the measures to reduce operating costs going forward.