Expansion of Customer Operations and Business Domains

「In addition to its strength in the FEP field, the Company is working to enhance the value of its payment solutions by expanding into acquiring. In fraud detection, as card fraud continues and fraudulent methods become increasingly sophisticated and diverse, the Company is working to enhance the value it provides in the payments field, including by launching cross-industry fraud prevention solutions for the card industry.」

「Going forward, we will expand into areas centered on acquiring and system operations services, among others.」

「The Company is formulating a three-year medium-term management plan beginning in the fiscal year ending June 2025. Under the plan, titled "Transformation for the Future," the Company is working to diversify its business and build a foundation for sustainable growth with a view to the 2030s. In its core payments business, the modernization and opening up of the mission-critical systems of its major payment service provider customers are advancing as cashless payments expand in Japan. In addition to its strength in the FEP field, the Company is working to enhance the value of its payment solutions by expanding into acquiring.」

「Against this backdrop, the Company formulated a new three-year medium-term management plan beginning in the fiscal year ending June 2025. Under the plan, titled "Transformation for the Future," the Company is working to diversify its business and build a foundation for sustainable growth with a view to the 2030s.」

「During the cumulative third-quarter period, revenue in the three core fields of systems development, cloud services, and security continued to grow, offsetting the decline following the large-scale hardware sales associated with the previous year's FEP system renewal. Revenue rose 8.6% year on year to ¥10,751 million and operating profit rose 31.7% to ¥1,496 million, resulting in substantial increases in both revenue and profit.」

「Against this backdrop, the Company is pursuing a three-year medium-term business plan ending in the fiscal year ending June 2025. To strengthen and expand its business base, the Company is building on its systems development business related to payment operations, an area in which it has strengths, to expand its stock business through growth in cloud services, expand its payment business areas through the use of payment data and support for customers' IT strategies, reform the structure of its security business, and expand its business areas by providing IT platforms that contribute to the digital transformation of industries other than payments and finance.」

「In the payments and finance fields, revenue from other companies' products, including hardware, declined because a large-scale hardware renewal took place in the previous period. Systems development revenue increased, however, driven by large-scale projects for credit card companies and growth in the number of projects. In cloud services, revenue increased as the number of users grew, particularly for the IFINDS cloud-based fraud detection service. In security, revenue increased as sales activities were made more efficient by focusing the product mix on priority products.」

「Stock revenue, which the Company has been prioritizing, increased substantially, raising the stock revenue ratio to nearly 50%. As a result, total order backlog reached ¥10,974 million, up 14.8% from the previous period, exceeding ¥10 billion for the first time, and the business was transformed into one capable of consistently recording monthly revenue of ¥1 billion.」

「Against this backdrop, the Company is pursuing a three-year medium-term business plan ending in the fiscal year ending June 2025. Alongside strengthening and expanding its business base through business structure transformation and expansion into new business areas, the Company is working to establish the human resources base and co-creation base needed for sustainable growth. To strengthen and expand its business base, the Company is building on its systems development business related to payment operations, an area in which it has strengths, to expand its stock business through growth in cloud services, expand its payment business areas through the use of payment data and support for customers' IT strategies, and expand its business areas by providing IT platforms that contribute to the digital transformation of industries other than payments and finance. During the cumulative third-quarter period, revenue totaled ¥9,896 million, up 26.3% year on year, driven by hardware sales resulting from the renewal of FEP systems for existing customers, growth in the number of cloud service users, and large-scale systems development projects for credit card companies.」

「Against this backdrop, the Company is pursuing a three-year medium-term business plan ending in the fiscal year ending June 2025. Alongside strengthening and expanding its business base through business structure transformation and expansion into new business areas, the Company is working to establish the human resources base and co-creation base needed for sustainable growth. To strengthen and expand its business base, the Company is building on its systems development business related to payment operations, an area in which it has strengths, to expand its stock business through growth in cloud services, expand its payment business areas through the use of payment data and support for customers' IT strategies, and expand its business areas by providing IT platforms that contribute to the digital transformation of industries other than payments and finance. During the cumulative second-quarter period, revenue totaled ¥6,789 million, up 38.9% year on year, driven by hardware sales resulting from the renewal of FEP systems for existing customers, growth in the number of cloud service users, and large-scale systems development projects for credit card companies.」

「Against this backdrop, the Company is pursuing a three-year medium-term business plan ending in the fiscal year ending June 2025. Alongside strengthening and expanding its business base through business structure transformation and expansion into new business areas, the Company is working to establish the human resources base and co-creation base needed for sustainable growth. To strengthen and expand its business base, the Company is building on its systems development business related to payment operations, an area in which it has strengths, to expand its stock business through growth in cloud services, expand its payment business areas through the use of payment data and support for customers' IT strategies, and expand its business areas by providing IT platforms that contribute to the digital transformation of industries other than payments and finance. During the cumulative first-quarter period, revenue totaled ¥3,646 million, up 61.9% year on year, driven by increased hardware sales resulting from the renewal of FEP systems for existing customers, growth in the number of cloud service users, and large-scale systems development projects for credit card companies.」

「Our cloud services have become a strong option not only for existing credit card companies but also for operating companies newly launching card or payment businesses.」

「Revenue from systems development exceeded the previous period's results, driven by projects for existing and new customers. Development activities progressed steadily, and initiatives to improve quality produced results in enhancing earnings power. Revenue from the cloud services business also increased following the launch of services for new customers, and the business performed well.」

「Orders for the cloud services business are increasing against a backdrop of active discussions with new customers. New orders totaled ¥1 billion in the first quarter and a further ¥1.87 billion was secured in the second quarter, causing the cloud services order backlog to increase substantially from ¥1.85 billion at the previous fiscal year-end to ¥4.23 billion at the end of the quarter.」

「Based on its systems development business related to payment operations, an area in which the Company has strengths, the Company is working to strengthen its earnings power through growth in its cloud services business and expand its business areas by providing IT platforms that support the digital transformation of customers in industries other than finance. The Company plans operating profit of ¥2.25 billion for the fiscal year ending June 2024, nearly double the ¥1.13 billion recorded in the fiscal year ended June 2021.」

「The Company plans to achieve revenue of ¥15 billion and operating profit of ¥2.25 billion, representing an operating margin of 15.0%, in the fiscal year ending June 2024.」

「In its business for the financial industry, the Company handled FEP system upgrades and functionality enhancements for major card companies and systems vendors, as well as systems development and hardware sales for the construction of fraud detection systems.」

「In the first quarter, revenue and operating profit were both below the previous period's results, but operating activities remained solid, with hardware orders increasing as planned and systems development orders exceeding the previous period's results. The order backlog also increased year on year and from the previous fiscal year-end.」

「Over the medium to long term, we aim for revenue of ¥15 billion as a target. In addition to growing our core systems development business, we plan to develop recurring and subscription businesses that are expected to generate stable, ongoing revenue, and add them as new pillars of our business. To this end, we plan to increase investment in new businesses, including cloud services, over the medium term.」

「The Financial Systems Solutions business posted revenue in line with plan. Revenue in the Product Solutions business exceeded the level recorded in the same quarter of the previous year, but operating profit fell below that level because sales of the Company's own products were below the previous period.」

「During the year, the company recognized revenue from an FEP system development project for a new customer and a system investment project related to the customer’s BCP. However, revenue from software development and hardware sales was below the prior-year quarter, leaving total revenue slightly below the prior-year result of ¥4,614 million. Revenue from the cloud-services business exceeded the prior-year period. The launch of services for new customers by IOASIS, which handles acquiring operations, and IFINDS, which detects fraudulent credit-card use, contributed to revenue growth.」

「The large-scale development project that generated approximately ¥300 million in revenue for a specific customer in the prior-year period ended in the prior fiscal year, the fiscal year ended June 2019. Although there was no development project of comparable scale in the current period, revenue exceeded the prior-year period because sales from other development projects for existing customers increased.」

「During the year, the company received an order from a new regional-bank customer to use its acquiring system. Preparations are under way to launch the service by year-end.」

「In the third quarter, sales of the company’s proprietary packaged software used in FEP system development increased substantially. This included projects originally scheduled to generate revenue in the fourth quarter that were brought forward.」

「For the six months ended 30 September, revenue was ¥5,039 million, up 7.4% year on year; operating profit was ¥269 million, up 41.5%; ordinary profit was ¥281 million, up 43.0%; and net income was ¥204 million, up 58.4%. Orders also exceeded the year-earlier level. Orders for cloud services increased, as did orders for software development and hardware sales for existing customers.」

「Revenue increased in the previous year because sales were recognized from a large-scale system development outsourcing project, but revenue from that project declined in the current year. This was offset by system renewals and feature additions for existing customers, software and hardware sales, and cloud-service revenue, resulting in revenue broadly in line with the previous year.」

「In addition to recognizing revenue as planned from a large-scale system development project related to the integration of card brands, revenue from mainly credit-card company customers increased. As a result, revenue for the year was ¥10,603 million, compared with ¥8,469 million in the previous year, exceeding ahead of schedule the planned revenue of ¥10,500 million for the fiscal year ending June 2020, the third year of the medium-term business plan disclosed at the beginning of the year on 2 August 2017.」

「During the year, the company conducted a proof of concept using its natural-language-processing AI technology and recognized revenue from projects including the construction of an AI system for specific operations at a non-life insurance company. Going forward, we will actively pursue system development to expand our business areas beyond payment and network connectivity systems, thereby strengthening and expanding our business base.」

「Revenue from the Financial Systems Solutions business significantly exceeded the year-earlier level because revenue from a large-scale development project was recognized in the first quarter. In addition, inquiries for payment-related system development, mainly from existing customers, remained firm, and revenue exceeded the initial forecast as sales of systems related mainly to credit-card and smartphone payments increased.」

「Revenue increased in the Financial Systems Solutions business because revenue was recognized on a large-scale system development project. This project formed part of a development project ordered by a domestic credit-card company, and from its inception the overall project was expected to take several years to complete.」

「During the year, inquiries and business discussions remained active, mainly for large-scale system development projects and projects related to the diversification of payment methods against the backdrop of the shift toward a cashless society. As a result, orders and revenue increased.」

「A new business providing cloud-based systems for credit-card acquiring, or merchant contracting, to banks and credit-card companies also began in the second quarter as planned and contributed to higher revenue. In the third quarter, the company also achieved results in developing new products and services, including winning an order from a major non-life insurance company for a product development project using its proprietary AI technology.」

「Revenue grew beyond the initial forecast of ¥2,920 million to ¥3,312 million, while operating profit reached ¥216 million, driven by projects involving smartphone-based card payments and the integration of card brands.」

「Orders remained strong, mainly for network connectivity system development related to payments using prepaid and debit cards as well as credit cards. As a result, revenue from the Financial Systems Solutions business was ¥1,460 million.」

「We plan to expand our business areas by viewing changes in the social and technological environment as business opportunities and proactively proposing new systems for a wide range of customers’ operational areas.」