Worth reading
43Recurring
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Deterioration
Direction inferred from the company’s description.Scale
33
¥ million (provision for loss on orders in the second quarter alone)Wording
Avoiding a definitive answer
How definitive the wording is.Contents of this document
Summary of Q&ASecond quarter of the fiscal year ending December 20268 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Selling, general and administrative expensesIncrease (Not disclosed)
Results for the three months of the current quarter
Provision for Losses on Contracts
¥33 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Plan not achievedKey points of the Q&AKey questions raised by investors at the briefing and the company's answers
- Background to the slowdown in DX engineering growth momentum and recovery in the second half
- Reasons for the second-quarter operating profit shortfall and risk of recurring provisions for loss on orders
- Factors behind the lower revenue growth rate and the transition in the business model
- Progress in mid-career consultant hiring
- Return to the Prime Market and measures to address the share price and trading volume
- The medium- to long-term outlook for the consulting business in the generative AI era
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
- Lower utilization in DX engineering
- Opportunity loss from assigning additional personnel to certain projects
- Delays in the start of large-scale projects
- Higher SG&A expenses due to investment in strategic consulting service development
- Difficulty matching projects with personnel in the engineer staffing business
- ¥33 million provision for loss on orders
New initiatives
- Reskilling engineers to address generative AI
- Improving employee productivity, performance-linked services, subscription-based services using proprietary IP, and developing joint businesses with customers
- Reformulation of the “3rd Growth Plan” for 2030
Key KPIsA metric the company considers important as a management benchmark.
- Number of consultant hires42 People
- Consultant hiring plan63 People
- Hiring progress rate67 %
Unit price and quantity metricsThese figures show sales broken down by price and volume.
- Number of contracts
- Number of active personnel
- Contract unit price
Medium-term management plan targets
The “3rd Growth Plan” is scheduled to be reformulated for 2030. Target figures: not disclosedNumber of employees
Engineers account for more than half of employees. Headcount: not disclosed| Item | Details |
|---|---|
| Document type | Summary of Q&A |
| Fiscal Period Covered | Second quarter of the fiscal year ending December 2026 |
| Selling, general and administrative expenses | Increase (Not disclosed) |
| Results for the three months of the current quarter | Provision for Losses on Contracts ¥33 million |
| Self-assessment against the plan | Plan not achieved |
| Breakdown of Factors Affecting the Change | Lower utilization in DX engineering, Opportunity loss from assigning additional personnel to certain projects, Delays in the start of large-scale projects, Higher SG&A expenses due to investment in strategic consulting service development, Difficulty matching projects with personnel in the engineer staffing business, ¥33 million provision for loss on orders |
| Key KPIs | Indicator name Number of consultant hires / Value 42 People / Year on year against the same period last year Not disclosed, Indicator name Consultant hiring plan / Value 63 People / Year on year against the same period last year Not disclosed, Indicator name Hiring progress rate / Value 67 % / Year on year against the same period last year Not disclosed |
| Unit price and quantity metrics | Number of contracts, Number of active personnel, Contract unit price |
| Number of employees | Engineers account for more than half of employees. Headcount: not disclosed |
| Medium-term management plan targets | The “3rd Growth Plan” is scheduled to be reformulated for 2030. Target figures: not disclosed |
| Key points of the Q&A | Background to the slowdown in DX engineering growth momentum and recovery in the second half, Reasons for the second-quarter operating profit shortfall and risk of recurring provisions for loss on orders, Factors behind the lower revenue growth rate and the transition in the business model, Progress in mid-career consultant hiring, Return to the Prime Market and measures to address the share price and trading volume, The medium- to long-term outlook for the consulting business in the generative AI era |
| New initiatives | Reskilling engineers to address generative AI, Improving employee productivity, performance-linked services, subscription-based services using proprietary IP, and developing joint businesses with customers, Reformulation of the “3rd Growth Plan” for 2030 |
Items this document does not state (19)
Net SalesOperating profitOrdinary incomeNet incomeGross Profit MarginOperating profit marginFull-year earnings forecastProgress against full-year forecastSegment resultsNumber of stores and locationsAssumptions Underlying the Business OutlookRisk amount incorporated into the outlookFinancial targetsAnnual DividendPayout ratioAcquisition 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.In DX engineering, engineer utilization temporarily declined as engineers were reskilled to address generative AI. Additional personnel assigned to certain projects also reduced the personnel available for other projects. These factors coincided with delays in the start of large-scale projects, higher SG&A expenses due to investment in strategic consulting service development, and difficulties matching projects with personnel in the engineer staffing business.
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.