Decline in MT Business Profit Due to Upfront Investment in NMT
First written in FY2018-Q1. 2 of 4 entries say "Worsened", first in FY2018-Q3. Latest entry: FY2019-Q1.
MetaReal moved to the "Worse" side of this theme in 2017, 4 years before the typical company in this theme (2021).
The whole theme swung hardest in 2017: 6 of 20 companies on the "Worse" side.
11 other companies' latest entry also says "Mitigated".
- FY2019-Q1MitigatedAnnual report
「In the MT business, new orders for T-4OO(ver.2), released in November 2017, remained strong. Revenue was ¥140.408 million, up 89.3% year on year, and segment profit was ¥10.846 million, up 98.5%.」
Upfront investment had weighed on MT business profit in the previous fiscal year, but strong orders for T-4OO(ver.2) drove a 98.5% year-on-year increase in segment profit this quarter, easing the pressure on earnings. - FY2018WorsenedAnnual report
「In the MT business, new orders for T-400(ver.2), released at the end of November 2017, got off to a strong start with a substantial increase. Revenue was ¥316.108 million, up 15.5% year on year. However, operating loss was ¥0.304 million, compared with operating profit of ¥40.736 million in the same period of the previous year, due to higher recruitment, personnel, advertising and depreciation expenses and other costs resulting from upfront development investment.」
The increase in recruitment costs, personnel expenses and other costs associated with upfront development investment continued to weigh on the MT business, which recorded an operating loss despite higher revenue for the full year. - FY2018-Q3WorsenedAnnual report
「In the MT business, revenue increased 11.8% year on year to ¥222.512 million, while segment profit fell 61.2% to ¥9.960 million, as upfront investment in machine translation development was substantially increased.」
Although the MT business posted higher revenue, segment profit fell 61.2% as a result of the substantial increase in upfront investment in machine translation development, indicating mounting earnings pressure from the investment. - FY2018-Q1MaterialisedAnnual report
「However, due to upfront investment in NMT (Neural Machine Translation) development, which has continued since the spring of the previous fiscal year, segment profit was ¥5.465 million, down 40.4% year on year.」
The ongoing NMT upfront investment since spring of the previous fiscal year was cited as a factor behind the decline in MT segment profit.