Losses in other businesses due to upfront product-development costs
First written in FY2017-Q1. 11 of 30 entries say "Worsened", first in FY2017-Q2. Latest entry: FY2024.
JMACS Japan moved to the "Worse" side of this theme in 2016.
The whole theme swung hardest in 2024: 2 of 6 companies on the "Worse" side.
3 other companies' latest entry also says "Mitigated".
- FY2024MitigatedAnnual report
「As a result, revenue was ¥142.322 million, down 39.2% from the previous fiscal year, and the segment loss was ¥52.705 million, compared with a segment loss of ¥171.644 million in the previous fiscal year.」
Although sales in the Total Solutions business declined, the segment loss narrowed from ¥171.644 million in the previous year to ¥52.705 million, easing the loss burden from front-loaded development and sales costs. - FY2024-Q3MitigatedAnnual report
「In the Total Solutions business, smart-glass sales were strong, but sales of other systems continued to decline. Revenue was ¥140.726 million, down 30.6% from the same quarter of the previous year, and the segment recorded a loss of ¥66.406 million, compared with a segment loss of ¥110.538 million in the same quarter of the previous year.」
Although declining sales continue in the Total Solutions business, the segment loss narrowed from ¥110.538 million in the same period of the previous year to ¥66.406 million, easing the loss burden. - FY2024-Q2MitigatedAnnual report
「In the Total Solutions business, inquiries for nvEye’sⓇ, the remote-work support system, and other products declined. Revenue was ¥52.365 million, down 69.0% from the same quarter of the previous year, and the segment recorded a loss of ¥51.409 million, compared with a segment loss of ¥63.455 million in the same quarter of the previous year.」
Although losses in the Total Solutions business continue, the segment loss narrowed from ¥63.455 million in the same period of the previous year to ¥51.409 million, partially easing the loss burden. - FY2024-Q1WorsenedAnnual report
「In the Total Solutions business, there were inquiries about smart glasses using nvEye’s (remote-support system), JSEEQ-CareⓇ (nursing-care support system), and other products. However, revenue was ¥33.342 million, down 68.7% from the same quarter of the previous year, and the segment recorded a loss of ¥31.116 million, compared with a segment loss of ¥17.338 million in the same quarter of the previous year.」
The segment loss in the Total Solutions business widened from ¥17.338 million in the same period of the previous year to ¥31.116 million. Although the text indicates an increase in the loss, it does not explicitly state that product development costs were the cause. - FY2023-Q3WorsenedAnnual report
「Sales of nvEye’sⓇ, a remote work support system that can be installed on smart glasses, were strong. However, sales of the jSeeq-care care-site support system were weak, while higher purchase prices due to the weaker yen and delays in business negotiations caused by the rapid spread of COVID-19 delayed progress on sales discussions. As a result, revenue was ¥202.692 million, down 26.8% from the same quarter of the previous year, and the segment loss was ¥110.613 million, compared with a segment loss of ¥75.962 million in the same quarter of the previous year.」
In the Total Solutions business, the segment loss widened from ¥75.962 million in the same period of the previous year to ¥110.613 million due to weak sales, higher purchase prices and delays in sales discussions, worsening the loss burden from front-loaded costs and business operations. - FY2023-Q2WorsenedAnnual report
「Higher purchase prices due to the weaker yen and higher software development costs resulted in a segment loss of ¥63.455 million, compared with a segment loss of ¥57.136 million in the same quarter of the previous year.」
In the Total Solutions business, higher purchase prices due to the weaker yen and higher software development costs caused the segment loss to widen from ¥57.136 million in the same period of the previous year to ¥63.455 million. - FY2023-Q1RestatedAnnual report
「For other products as well, the company is reviewing product concepts and working on renewals with the aim of making this business profitable. Net sales were ¥106.389 million, and the segment loss was ¥17.338 million.」
While reviewing and renewing its product concepts, the Total Solutions business incurred a segment loss of ¥17.338 million, and the risk of losses associated with development and business expansion continues. - FY2022-Q3RestatedAnnual report
「On the cost side, although the Company worked to improve profitability through project management, higher research and development expenses for software and other items resulted in a segment loss of ¥75.962 million.」
While advancing profitability improvements through project management, the Total Solutions business continues to incur a segment loss due to higher research and development expenses for software and other items. - FY2022-Q2RestatedAnnual report
「On the cost side, although the Company worked to improve profitability through project management, the increase in the number of engineers and higher software development costs resulted in a segment loss of ¥57.136 million.」
While advancing profitability improvements through project management, the Company incurred a segment loss due to the increase in engineers and higher software development costs, and continues to report the cost burden associated with development and business expansion. - FY2022-Q1WorsenedAnnual report
「In the Total Solutions business, higher shipments of smart glasses and the acquisition of projects resulted in revenue of ¥127.341 million, up 72.0% from the same quarter of the previous year. On the cost side, although the Company worked to improve profitability through project management, the segment loss was ¥20.975 million, compared with a segment loss of ¥17.336 million in the same quarter of the previous year.」
Although revenue increased, the segment loss widened from ¥17.336 million to ¥20.975 million despite efforts to improve profitability through project management, worsening the risk of losses from front-loaded costs. - FY2021MitigatedAnnual report
「In the total solutions business, shipments increased, particularly of smart glasses for remote work support, in response to the spread of COVID-19, resulting in revenue of ¥406.050 million, up 146.0% from the previous consolidated fiscal year. However, the profit margin declined due to higher research and development costs from new product development and higher costs from partial outsourcing, resulting in a segment loss of ¥76.394 million, compared with a segment loss of ¥155.091 million in the previous consolidated fiscal year.」
Although losses from new product development and outsourcing costs continue, the segment loss narrowed from ¥155.091 million to ¥76.394 million as revenue increased. - FY2021-Q3MitigatedAnnual report
「In the total solutions business, orders for smart glasses increased amid the spread of COVID-19, and revenue reached ¥239.207 million, up 124.0% year on year, following completion of acceptance inspections for a large-scale project. Improved profitability through project management resulted in a segment loss of ¥60.688 million, compared with a segment loss of ¥123.377 million in the same period of the previous year.」
Revenue increased, and improved profitability through project management reduced the segment loss from ¥123.377 million in the same period of the previous year to ¥60.688 million, easing the risk of losses associated with front-loaded investment. - FY2021-Q2MitigatedAnnual report
「In the total solutions business, orders for smart glasses increased amid the spread of COVID-19, and revenue reached ¥139.379 million, up 121.7% year on year, following completion of acceptance inspections for a large-scale project. Improved profitability through project management resulted in a segment loss of ¥50.536 million, compared with a segment loss of ¥90.918 million in the same period of the previous year.」
Revenue increased, and improved profitability through project management reduced the segment loss from ¥90.918 million in the same period of the previous year to ¥50.536 million, easing the risk of losses associated with front-loaded investment. - FY2021-Q1MitigatedAnnual report
「On the cost side, efforts to improve profitability through project management resulted in a segment loss of ¥17.336 million, compared with a segment loss of ¥45.492 million in the same quarter of the previous year.」
The Company has reported improved profitability through project management, and the segment loss in the Total Solutions business narrowed from ¥45.492 million in the same period of the previous year to ¥17.336 million. - FY2020MitigatedAnnual report
「Higher costs for joint development of commissioned projects and costs associated with partial outsourcing reduced the profit margin, resulting in a segment loss of ¥155.091 million, compared with a segment loss of ¥186.692 million in the previous consolidated fiscal year.」
Although losses from joint development and outsourcing costs continue, the segment loss narrowed from ¥186.692 million in the previous year to ¥155.091 million. - FY2020-Q3RestatedAnnual report
「In the total solutions business, orders increased, resulting in revenue of ¥106.791 million, up 62.9% year on year. However, higher development costs, including those for joint research with external parties, and higher outsourcing costs resulted in a segment loss of ¥123.377 million, compared with a segment loss of ¥137.901 million in the same period of the previous year.」
Although orders and revenue increased and the segment loss narrowed, front-loaded costs and losses continue to be incurred due to higher development costs and outsourcing expenses associated with joint research activities and other work with external parties. - FY2020-Q2RestatedAnnual report
「Higher personnel expenses, outsourcing costs and other factors resulted in a segment loss of ¥90.918 million, compared with a segment loss of ¥95.926 million in the same quarter of the previous year.」
In the Total Solutions business, higher personnel expenses and outsourcing costs have resulted in continuing losses, and the Company continues to identify the risk from front-loaded costs associated with product development and business expansion. - FY2020-Q1RestatedAnnual report
「Higher costs, including personnel expenses and development costs, resulted in a segment loss of ¥45.492 million, compared with a segment loss of ¥45.884 million in the same quarter of the previous year.」
Although orders and revenue in the Total Solutions business increased, higher costs, including personnel expenses and development costs, resulted in a continuing segment loss. - FY2019WorsenedAnnual report
「As a result, revenue was ¥92.005 million, up 4.0% from the previous consolidated fiscal year, but higher fixed costs, including product development and production costs and sales promotion expenses, resulted in a segment loss of ¥186.692 million, compared with a segment loss of ¥182.500 million in the previous consolidated fiscal year.」
Although revenue in the Total Solutions business increased, higher fixed costs, including product development and production costs and sales promotion expenses, caused the segment loss to widen from ¥182.500 million to ¥186.692 million. - FY2019-Q3WorsenedAnnual report
「Fixed costs, including development costs for new fields and sales promotion expenses, increased, resulting in a segment loss of ¥137.901 million, compared with a segment loss of ¥134.531 million in the same quarter of the previous year.」
While continuing development and sales promotion in new fields in the Total Solutions business, the segment loss widened from ¥134.531 million in the same quarter of the previous year to ¥137.901 million due to higher fixed costs. - FY2019-Q2WorsenedAnnual report
「Higher costs, including research and development expenses and sales promotion expenses, resulted in a segment loss of ¥95.926 million, compared with a segment loss of ¥90.129 million in the same quarter of the previous year.」
In the Total Solutions business, research and development expenses and sales promotion expenses increased, causing the segment loss to widen from ¥90.129 million in the same quarter of the previous year to ¥95.926 million. - FY2019-Q1WorsenedAnnual report
「Although projects were available, implementation verification required time and the overall volume declined, resulting in revenue of ¥17.983 million, down 11.1% from the same quarter of the previous year. Higher costs related to research and development activities and other factors resulted in a segment loss of ¥45.884 million, compared with a segment loss of ¥33.432 million in the same quarter of the previous year.」
In the Total Solutions business, although projects were available, implementation verification took time, and revenue declined 11.1% year on year. The segment loss also widened from ¥33.432 million to ¥45.884 million due to research and development activities and other factors. - FY2018RestatedAnnual report
「In the total solutions business, orders for smart glasses and various sensor systems increased, but costs rose due to the development of new products and the development of sales channels in Japan and overseas. Revenue was ¥88.442 million, and the segment loss was ¥182.500 million.」
Although orders have increased, higher costs associated with developing new products and expanding domestic and overseas sales channels have resulted in a segment loss. As this is the first fiscal year following the transition to consolidated reporting, no comparison with the same period of the previous year has been made. - FY2018-Q3RestatedAnnual report
「The segment loss was ¥134.531 million due to higher costs for development and sales promotion activities.」
While advancing product development and sales promotion, the Company continues to incur the associated higher costs and segment losses. - FY2018-Q2RestatedAnnual report
「As a result, revenue was ¥33.393 million and the segment loss was ¥90.129 million.」
In the Total Solutions business, the Company is strengthening its organisation, expanding sales channels and developing products, while a segment loss was also recorded for the cumulative second quarter. As there is no comparative information for the same period of the previous year, the loss has not been determined to have widened. - FY2018-Q1RestatedAnnual report
「In the Total Solutions business, the Company strengthened its organisation, including by adding software development engineers, to accelerate product development while responding rapidly to market needs in growth fields such as IoT and AI. As a result of focusing on developing a structure for expanding sales channels and on package development, revenue was ¥20.219 million and the segment loss was ¥33.432 million.」
In the Total Solutions business, the Company is advancing product development, organisational expansion and market development, while a segment loss continues to be recorded this quarter, indicating that the risk of losses associated with front-loaded investment remains. - FY2017WorsenedAnnual report
「In the Total Solutions business, the Company focused on developing a structure to respond rapidly to market needs and advanced product development with a view to global expansion. Revenue was ¥61.692 million, up 15.6% from the previous fiscal year, and the segment loss was ¥137.539 million, compared with a segment loss of ¥81.339 million in the previous fiscal year.」
Although revenue in the Total Solutions business increased, the segment loss widened from ¥81.339 million to ¥137.539 million, further highlighting the risk of losses associated with product development and market development. - FY2017-Q3WorsenedAnnual report
「In the Writing and System Solutions businesses, the Company has focused on promptly identifying market needs, commercialising products at an early stage and building mechanisms for generating sales, while advancing product development with a view to global expansion. As a result, revenue was ¥50.633 million, up 35.2% year on year, and the segment loss was ¥92.466 million, compared with a segment loss of ¥55.056 million in the same period of the previous year.」
Revenue increased as a result of product development and market development initiatives, while the segment loss in the Other Businesses widened from ¥55.056 million in the same period of the previous year to ¥92.466 million. - FY2017-Q2WorsenedAnnual report
「By focusing on developing products tailored to customer needs, including smart glasses, as a front-loaded investment in market development, revenue was ¥37.728 million, up 43.5% year on year, and the segment loss was ¥42.562 million, compared with a segment loss of ¥28.599 million in the same period of the previous year.」
Revenue increased as a result of front-loaded investment in market development, including product development, while the segment loss widened from ¥28.599 million in the same period of the previous year to ¥42.562 million. - FY2017-Q1First statedAnnual report
「Net sales were 23,634 thousand yen, up 33.1% year on year, but product-development costs were incurred ahead of revenue, resulting in a segment loss of 23,560 thousand yen, compared with a segment loss of 7,521 thousand yen in the prior year.」
In the other businesses, which are being developed through investment in new markets and sales channels, product-development costs were incurred ahead of revenue growth, resulting in wider losses.