Worth reading
60In focus
Scored from 5 of 6 sectionsDirection
Improvement
Direction inferred from the company’s description.Scale
170.4
Year-on-year change in operating profit (%)Wording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Financial Results PresentationQ3 FY202612 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥5,374 million+7.8%
Operating profit¥434 million+170.4%
Ordinary income¥448 million+149.3%
Net income¥287 million+139.5%
Operating profit margin8.1 %
Selling, general and administrative expenses¥831 million
Results for the three months of the current quarter
Net Sales
¥1,859 million+10.0%
Operating profit
¥159 million
Operating profit margin
8.6 %
Full-year earnings forecast
Net Sales
¥7,535 million
Operating profit
¥617 million
Ordinary income
¥660 million
Net income for the current fiscal year
¥442 million
Operating profit margin
8.2 %
Progress against full-year forecast 通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales71.3 %
Operating profit70.4 %
Ordinary income68 %
Net income for the current fiscal year65.1 %
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Broadly within expectations. Each stage of profit is expected to meet the full-year forecast.Key points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Progress through the cumulative third quarter was broadly within expectations, and each stage of profit is expected to meet the full-year forecast.
- Schedule extensions due to project requests, additional requirements and delays in the delivery of materials, together with cyberattacks on cloud service providers, are the main reasons for taking a cautious view of the second half.
- The main components of the ¥27 million extraordinary loss were ¥22 million in retirement benefits for officers and a ¥4 million impairment loss on shares of affiliated companies.
- The ¥105 dividend forecast is unchanged. The policy of raising the payout ratio to 35% if operating profit exceeds the forecast is also unchanged.
- The plan for the next fiscal year and the new medium-term management plan toward 2030 are scheduled to be presented when the full-year results are announced in February 2027.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Revenue growth and improvement in the cost of sales ratioExplained as a factor behind the increase in operating profit; amount not disclosed
Yodoyabashi office rentFactor behind the increase in selling, general and administrative expenses; amount not disclosed
Mid-career hiring costsFactor behind the increase in selling, general and administrative expenses; 50 people joined the company
AI licensing and training costsInvestment costs associated with AI implementation; amount not disclosed
Extraordinary loss
¥27 million
BreakdownRetirement benefits for officers: ¥22 million; impairment loss on shares of affiliated companies: ¥4 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Budget planningA growth-oriented approach in which development costs for some projects were recognized conservatively in the first half, while projects expected to support increased hiring and earnings growth are incorporated in the second half
Second-half operating marginExplained as a planned level of more than 10%
New initiatives
- Strengthening the partnership with Anthropic, developing certified personnel and building implementation track records toward obtaining Certified and Select certifications
- Validation of the AI-driven development platform Nova Spark in actual projects and performance improvements
- Opening the Yodoyabashi office to increase hiring and strengthen the organization
Key KPIsA metric the company considers important as a management benchmark.
- Those who passed Anthropic certification exams1 students
- Certified-certified personnel0 students
- Customers implementing Claude1 Companies 2 cases
- Design, implementation and integration-testing man-hours using Nova SparkApproximately 1/3
Segment results
Systems integration
Net Sales
¥5,285 million+7.8%
Cloud Services
Net Sales
¥89 million+6.7%
Medium-term management plan targets
A new medium-term business plan toward 2030 is scheduled to be presented alongside the full-year results announcement in February 2027. Specific targets are not disclosed.Number of stores and locations
Opened the Yodoyabashi office. The total number of stores and sites at period-end, as well as openings and closures, are not disclosed.Number of employees
576 people
Recruitment26 new graduates joined the company; 50 experienced hires joined the company
Annual Dividend
¥105 /share
Payout ratio
33.3 %
Conditional policyIf operating profit exceeds the full-year forecast, the payout ratio will be raised to 35% and the dividend increased.
| Item | Details |
|---|---|
| Document type | Financial Results Presentation |
| Fiscal Period Covered | Q3 FY2026 |
| Net Sales | ¥5,374 million (YoY +7.8%) |
| Operating profit | ¥434 million (YoY +170.4%) |
| Ordinary income | ¥448 million (YoY +149.3%) |
| Net income | ¥287 million (YoY +139.5%) |
| Operating profit margin | 8.1 % |
| Selling, general and administrative expenses | ¥831 million |
| Results for the three months of the current quarter | Net Sales ¥1,859 million (YoY +10.0%) / Operating profit ¥159 million / Operating profit margin 8.6 % |
| Full-year earnings forecast | Net Sales ¥7,535 million / Operating profit ¥617 million / Ordinary income ¥660 million / Net income for the current fiscal year ¥442 million / Operating profit margin 8.2 % |
| Progress against full-year forecast | Net Sales 71.3 % / Operating profit 70.4 % / Ordinary income 68 % / Net income for the current fiscal year 65.1 % |
| Self-assessment against the plan | Broadly within expectations. Each stage of profit is expected to meet the full-year forecast. |
| Segment results | Systems integration Net Sales ¥5,285 million (YoY +7.8%) / Profit Not disclosed / Cloud Services Net Sales ¥89 million (YoY +6.7%) / Profit Not disclosed |
| Breakdown of Factors Affecting the Change | Revenue growth and improvement in the cost of sales ratio Explained as a factor behind the increase in operating profit; amount not disclosed / Yodoyabashi office rent Factor behind the increase in selling, general and administrative expenses; amount not disclosed / Mid-career hiring costs Factor behind the increase in selling, general and administrative expenses; 50 people joined the company / AI licensing and training costs Investment costs associated with AI implementation; amount not disclosed / Extraordinary loss ¥27 million |
| Key KPIs | Indicator name Those who passed Anthropic certification exams / Value 1 students / Year on year against the same period last year Not disclosed, Indicator name Certified-certified personnel / Value 0 students / Year on year against the same period last year Not disclosed, Indicator name Customers implementing Claude / Value 1 Companies (2 cases) / Year on year against the same period last year Not disclosed, Indicator name Design, implementation and integration-testing man-hours using Nova Spark / Value Approximately 1/3 / Year on year against the same period last year Not disclosed |
| Number of stores and locations | Opened the Yodoyabashi office. The total number of stores and sites at period-end, as well as openings and closures, are not disclosed. |
| Number of employees | 576 people |
| Assumptions Underlying the Business Outlook | Budget planning A growth-oriented approach in which development costs for some projects were recognized conservatively in the first half, while projects expected to support increased hiring and earnings growth are incorporated in the second half / Second-half operating margin Explained as a planned level of more than 10% |
| Medium-term management plan targets | A new medium-term business plan toward 2030 is scheduled to be presented alongside the full-year results announcement in February 2027. Specific targets are not disclosed. |
| Annual Dividend | ¥105 /share |
| Payout ratio | 33.3 % |
| Key points of the Q&A | Progress through the cumulative third quarter was broadly within expectations, and each stage of profit is expected to meet the full-year forecast., Schedule extensions due to project requests, additional requirements and delays in the delivery of materials, together with cyberattacks on cloud service providers, are the main reasons for taking a cautious view of the second half., The main components of the ¥27 million extraordinary loss were ¥22 million in retirement benefits for officers and a ¥4 million impairment loss on shares of affiliated companies., The ¥105 dividend forecast is unchanged. The policy of raising the payout ratio to 35% if operating profit exceeds the forecast is also unchanged., The plan for the next fiscal year and the new medium-term management plan toward 2030 are scheduled to be presented when the full-year results are announced in February 2027. |
| New initiatives | Strengthening the partnership with Anthropic, developing certified personnel and building implementation track records toward obtaining Certified and Select certifications, Validation of the AI-driven development platform Nova Spark in actual projects and performance improvements, Opening the Yodoyabashi office to increase hiring and strengthen the organization |
Items this document does not state (8)
Gross Profit MarginUnit price and quantity metricsRisk amount incorporated into the outlookFinancial targetsAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / Share
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.The company explained that profitability recovered significantly due to higher revenue and an improvement in the cost ratio. It cited the increase in gross profit, higher selling, general and administrative expenses, AI implementation-related costs, recruitment costs, and rent for the Yodoyabashi office as factors behind the increase in operating profit.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.