Fluctuations in the Network Business Due to the Reaction to Large-Scale Projects
First written in FY2017-Q1. 12 of 35 entries say "Worsened", first in FY2019-Q3. Latest entry: 2026-09-11.
Access moved to the "Worse" side of this theme in 2018, 6 years before the typical company in this theme (2024).
The whole theme swung hardest in 2018: 2 of 7 companies on the "Worse" side.
2 other companies' latest entry also says "Materialised".
- FY2027-H1RestatedAnnual report
「Due in part to the impact of large projects won last year, revenue and segment profit both increased year on year.」
The network business's performance has been affected by large projects won in the previous year, and fluctuations based on the timing of orders and revenue recognition for large projects remain evident. - 2026-06-12MaterialisedEarnings
「During the cumulative first-quarter period under review, the contribution of a major project received in the previous year resulted in higher overall revenue and a narrower loss.」
The contribution of a major project received in the previous year appeared in quarterly results, making performance fluctuations associated with the timing of order receipt and revenue recognition an actual outcome. - FY2026WorsenedAnnual report
「In the fiscal year ending January 2027 (February 2026 to January 2027), the IoT business expects to further expand and deepen its professional services by leveraging its business achievements to date and making comprehensive proposals that include hardware provision, thereby further strengthening its customer base. At the same time, the company expects sales to decline to a certain extent due to the impact of the reversal of large projects.」
Although the IoT business recorded higher sales during the current fiscal year due to the delivery of large projects, it expects sales to decline to a certain extent in the next fiscal year due to the reversal of large projects, explicitly indicating the risk of performance fluctuations based on the timing of recognition of large projects. - FY2026-H1WorsenedAnnual report
「During the interim consolidated period, new customer acquisition for OcNOS® remained steady, but sales and profit declined year on year due partly to the reversal of large projects from the same period of the previous year.」
Although new customer acquisition was steady, the reversal of large projects from the same period of the previous year and other factors caused net sales in the network business to decline 43.6% year on year, while the segment loss widened from ¥578 million to ¥2,594 million. - FY2025WorsenedAnnual report
「In addition to slower-than-expected sales growth, higher development costs and other factors resulted in a wider loss.」
In addition to fluctuations related to the timing of orders and revenue recognition for large projects, growth in the network business itself was slower than expected, and the segment loss widened amid higher development costs. - FY2025-H1MaterialisedAnnual report
「Partly because some projects that had been expected to be recognized as revenue from the third quarter onward were recognized earlier」
Some projects expected to be recognized as revenue from the third quarter onward were recognized earlier during the interim period, and fluctuations in the network business's performance due to the timing of project recognition actually emerged. - FY2025-Q1WorsenedAnnual report
「During the first quarter of the current fiscal year, the number and average value of new customer acquisitions and repeat orders for OcNOS® continued to increase steadily. However, due to the reaction to the large repeat order received in the same quarter of the previous year, revenue and profit declined year on year.」
Although new customer acquisition and repeat orders increased, the reversal of large repeat orders from the same period of the previous year actually emerged. Net sales in the network business declined 16.9% year on year, and segment profit and loss turned from a profit of ¥342 million to a loss of ¥778 million. - FY2024MitigatedAnnual report
「OcNOS® has also been highly regarded as a carrier-grade product that delivers flexibility and reliability while reducing capital expenditures, and business results have emerged, including the securing of repeat orders for large projects for the second consecutive fiscal year.」
While risks related to past fluctuations in the timing and scale of orders for large projects had arisen, large repeat orders were received during the current fiscal year, improving sales and profit in the network business. - FY2024-Q3MitigatedAnnual report
「New customer acquisition and repeat orders for OcNOS® generally progressed as expected, resulting in higher revenue and a narrower loss compared with the same quarter of the previous year.」
Although uncertainty over the scale and timing of project orders seen previously remains, new customer acquisition and repeat orders progressed broadly in line with expectations, improving sales and profit in the network business. - FY2024-Q1MitigatedAnnual report
「Sales and profit increased substantially year on year, mainly due to the impact of large repeat orders being received earlier than scheduled.」
In contrast to the later timing of project orders and uncertainty over initial implementation scale seen previously, large repeat orders were received earlier during the quarter, improving sales and profit in the network business. - FY2023MitigatedAnnual report
「During the current consolidated fiscal year, the company acquired approximately 90 new customers, growing its cumulative customer base to more than 200, while the number and average value of repeat orders from customers acquired by the end of the previous consolidated fiscal year also increased steadily.」
Although the previously observed risk of fluctuations in the timing and scale of orders for large projects remains, the customer base expanded as new customer acquisition, cumulative customer numbers and repeat orders increased. - FY2023-Q3MitigatedAnnual report
「Steady business growth is continuing, with more than 60 customers newly deciding to adopt solutions from IP Infusion Inc., including OcNOS®, during the current fiscal year.」
In the network business, more than 60 new customers decided to adopt the products, net sales increased 167.5% year on year, and the segment loss narrowed from ¥2,087 million to ¥1,484 million. Improvement in project orders and customer acquisition was evident. - FY2023-Q2MitigatedAnnual report
「During the cumulative second quarter of the current consolidated fiscal year, approximately 40 new customers had adopted solutions from IP Infusion Inc., including OcNOS®, while order values and the number of repeat orders also increased.」
Although uncertainty over the scale of orders for large projects remains, adoption by approximately 40 new customers and increases in order value and repeat orders indicate improvement in customer acquisition and orders. - FY2023-Q1MitigatedAnnual report
「More than 20 new customers have adopted solutions from IP Infusion Inc., including OcNOS®, and net sales increased year on year.」
Although uncertainty over the scale of orders for large projects remains, the adoption of the network business by more than 20 new customers and higher sales indicate improvement from the delays in orders and widening losses seen in the previous year. - FY2022WorsenedAnnual report
「The initial implementation scale and order value of projects fell below initial expectations.」
Although inquiries and the number of orders for white-box projects increased, initial implementation scale and order value fell below expectations, leaving net sales in the network business approximately ¥2 billion below plan. - FY2022-Q3WorsenedAnnual report
「The initial implementation scale and order value of white-box projects were below initial expectations. As a result, although net sales increased year on year, they fell below the initial plan, and the increase in expenses, including personnel expenses associated with strengthening the organization and software depreciation and amortization, exceeded the increase in sales, widening the segment loss year on year.」
Separately from the increase in inquiries and orders, initial implementation scale and order value fell below expectations, and the network business's loss widened as higher costs also weighed on results. - FY2022-Q2WorsenedAnnual report
「The number of inquiries and orders for projects is increasing steadily, but initial implementation amounts tend to start at lower levels than initially anticipated.」
Although inquiries and the number of orders are increasing, initial implementation scale and order value have tended to fall below expectations, newly indicating continued uncertainty over the monetization of large projects. - FY2022-Q1MitigatedAnnual report
「The company established systems for online sales activities, marketing initiatives and testing and evaluation, and continues to conduct demonstration tests and negotiations aimed at securing orders for large projects. Inquiries are still trending upward, and during the first three months of the current fiscal year the company received orders for white-box projects, mainly in Africa.」
In response to the previous risk of delays in business discussions and testing and evaluation, the company shifted to online activities, inquiries increased, and orders were received, mainly for projects in Africa. However, demonstration tests and negotiations for large projects are still ongoing. - FY2021WorsenedAnnual report
「As a result, contracts for large projects involving the licensing of the company's products were not concluded, and the increase in depreciation and amortization associated with increased product development investment occurred ahead of schedule, resulting in lower sales and profit year on year.」
Delays in testing and evaluation and in the timing of orders caused by COVID-19 appeared as the failure to conclude contracts for large projects. Together with the front-loaded increase in depreciation and amortization associated with product development investment, this resulted in lower sales and profit in the network business. - FY2021-Q3WorsenedAnnual report
「For the segment during the first nine months of the current fiscal year, inquiries and projects under negotiation increased through sales activities using knowledge gained from the introduction of white-box solutions, including those for Asia Pacific Telecom（亞太電信）and Mundo Pacífico, as well as remote customer proposals and implementation testing. However, this was insufficient to offset the decline in sales caused by delays in project orders through the first six months of the consolidated fiscal year. The increase in depreciation and amortization associated with increased product development investment occurred ahead of schedule, resulting in higher sales but lower profit year on year.」
Although inquiries and projects under negotiation increased, this was insufficient to offset delays in the timing of orders. Net sales in the network business increased 3.0% year on year, while the segment loss widened from ¥677 million to ¥1,406 million. - FY2021-Q2WorsenedAnnual report
「In projects involving the testing and evaluation of the company's products for future commercial adoption, restrictions on procuring personnel and equipment caused by the spread of COVID-19 resulted in delays and interruptions to testing and evaluation. In addition, the testing and evaluation period itself required before receiving orders was expected to take longer than initially anticipated, resulting overall in the timing of project orders being pushed back.」
In the network business, delays and interruptions to testing and evaluation occurred due to restrictions on procuring personnel and equipment, making the later timing of orders increasingly evident. - FY2021-Q1WorsenedAnnual report
「For the segment during the first three months of the current fiscal year, sales and profit declined year on year as the spread of COVID-19 led to the cancellation of global events for telecommunications operators that had been expected to provide major opportunities to acquire new customers, delays in business discussions with new customers, interruptions to customer product evaluation projects and other developments. As a result, the increase in depreciation and amortization associated with increased product development investment occurred ahead of schedule.」
In the network business, the cancellation of events, delays in business discussions with new customers and interruptions to customer product evaluation projects coincided, causing new customer acquisition to fall below initial expectations. - FY2019-Q3WorsenedAnnual report
「In addition to the decline in sales caused by the signing of contracts for large licensing projects being pushed back to the fourth quarter due to partial delays in product development related to OcNOS®, the company recorded lower sales year on year because one-time costs, including expenses related to the acquisition of Northforge, were incurred ahead of schedule.」
The factors behind fluctuations in the network business became more specific: in addition to the later timing of project orders, delays in OcNOS product development pushed the signing of contracts for large licensing projects into the fourth quarter. - FY2019-Q2ReframedAnnual report
「Net sales and profit declined due to the impact of partial delays in product development related to OcNOS® and other factors.」
The factor behind fluctuations in the network software business changed from the later timing of project orders in the previous quarter to partial delays in product development related to OcNOS® and other factors. - FY2019-Q1ReframedAnnual report
「For the segment during the first three months of the current fiscal year, net sales and profit declined because the timing of project orders shifted later compared with the same quarter of the previous year, although business progress was broadly in line with the plan.」
Rather than the previous decline following large projects, the later timing of project orders was cited as a factor behind the decline in sales and profit in the network software business, replacing the previous explanation for the business fluctuations. - FY2017DroppedAnnual report
「Net sales and profit increased compared with the previous consolidated fiscal year, supported by the steady development of the ZebOS® business and the beginning of customer-base development for OcNOS®, and segment profit and loss turned positive alongside more efficient business operations.」
The deterioration in the network business due to the decline following large projects, which had been reported previously, was no longer evident in the description for the current consolidated fiscal year, and the business recorded higher sales, higher profit and a return to profitability. - FY2017-Q3RestatedAnnual report
「For the segment during the first nine months of the current fiscal year, net sales and segment profit and loss both deteriorated due to the decline following large projects won in the same quarter of the previous year, the impact of yen appreciation and other factors.」
Fluctuations in the network software business due to the decline following large projects and yen appreciation continued. Net sales fell 28.2% year on year, and the segment loss was ¥132.48 million. - FY2017-Q2RestatedAnnual report
「For the segment during the first six months of the current fiscal year, net sales and segment profit and loss both deteriorated due to the decline following large projects won in the same quarter of the previous year, the impact of yen appreciation and other factors.」
Fluctuations in the network software business due to the decline following large projects and yen appreciation continued. Net sales fell 35.0% year on year, and segment profit and loss turned from a profit to a loss of ¥63.75 million. - FY2017-Q1First statedAnnual report
「Net sales and segment profit and loss both deteriorated due to the impact of the reversal of large projects won in the same quarter of the previous year and other factors.」
The reversal of large projects appeared as deterioration in net sales and segment profit and loss during the quarter, with net sales in the network software business down 58.4% year on year.