Recognition of an extraordinary loss
en Inc. (the filing company)
Software that is no longer expected to be used and some of the investment securities held by the company
As part of its structural reforms, the company reviewed software usage, and the software was no longer expected to be used because of service suspensions and other factors. In addition, the realizable value of the investment securities fell significantly below their acquisition cost.
¥874 million (loss on disposal of fixed assets: ¥638 million; impairment loss on investment securities: ¥235 million; extraordinary losses)
Second quarter of the fiscal year ending March 2027
The recognition of these extraordinary losses does not change the full-year earnings forecast for the fiscal year ending March 2027.
Company response
Service suspensions and other factors
The extraordinary losses described above are reflected in the financial results for the second quarter of the fiscal year ending March 2027 announced today. If it becomes necessary to revise the earnings forecast, the company will announce the revision promptly.
| Item | Details |
|---|---|
| Event name | Recognition of an extraordinary loss |
| Subject Entity | en Inc. (the filing company) |
| Target Locations / Products | Software that is no longer expected to be used and some of the investment securities held by the company |
| Cause | As part of its structural reforms, the company reviewed software usage, and the software was no longer expected to be used because of service suspensions and other factors. In addition, the realizable value of the investment securities fell significantly below their acquisition cost. |
| Amount of Impact on Business Performance | ¥874 million (loss on disposal of fixed assets: ¥638 million; impairment loss on investment securities: ¥235 million; extraordinary losses) |
| Accounting period in which recognized | Second quarter of the fiscal year ending March 2027 |
| Impact on Earnings Forecast | The recognition of these extraordinary losses does not change the full-year earnings forecast for the fiscal year ending March 2027. |
| Suspended operations | Service suspensions and other factors |
| Outlook | The extraordinary losses described above are reflected in the financial results for the second quarter of the fiscal year ending March 2027 announced today. If it becomes necessary to revise the earnings forecast, the company will announce the revision promptly. |
| Planned follow-up disclosure | If it becomes necessary to revise the earnings forecast, the company will announce the revision promptly. |
Items this document does not state (15)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.As part of its structural reforms, the company reviewed software usage and disposed of software that was no longer expected to be used because of service suspensions and other factors. In addition, the realizable value of some of its investment securities fell significantly below their acquisition cost.