Risks of Project Delays and Deteriorating Profitability
First written in FY2023. 1 of 3 entries say "Restated". Latest entry: FY2026.
Fusic moved to the "Worse" side of this theme in 2026, 4 years after the typical company in this theme (2022).
The whole theme swung hardest in 2024: 17 of 54 companies on the "Worse" side.
12 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「In addition, to achieve further growth, the company is front-loading expenses related to hiring personnel, advertising and promotional activities, and the development of its internal infrastructure. In particular, personnel expenses, which account for a large proportion of these costs, continue to be incurred as fixed costs after hiring and are difficult to adjust promptly in line with fluctuations in performance. If revenue fails to expand as planned, this may affect the company's operating results and financial condition.」
In addition to the existing risks of delays in customer acceptance and increased labor hours, the company has added the possibility that fixed personnel costs associated with growth investments may become a factor causing fluctuations in performance if revenue falls short of plan. - FY2024RestatedAnnual report
「Because acceptance of fixed-price projects tends to be concentrated around clients' fiscal year-ends, revenue and profit tend to increase from December through March. If revenue and profit expected by the third quarter are pushed into the following quarter due to delays in project progress, acceptance or other matters, the company's results for each quarter may fluctuate.」
The company reconfirms the risks of concentrated project acceptance timing, delays in progress, and increased workload and deteriorating profitability caused by differences in understanding, including the seasonality from December through March. - FY2023First statedAnnual report
「If revenue and profit expected by the third quarter are pushed into the following quarter due to delays in project progress, acceptance or other matters, the company's results for each quarter may fluctuate. In addition, although projects are accepted based on estimates prepared using the expected workload and level of difficulty, if the workload increases significantly and project profitability deteriorates due to differences in understanding with clients or other factors not anticipated when the estimates were prepared, this may affect the company's operating results and financial position.」
The disclosure identifies concentration of acceptance timing, delays in project progress, increased workload due to differences in understanding, and deteriorating profitability as risks specific to fixed-price projects.