Expansion of the HPC and CTO businesses

「HPC business revenue was ¥5,000.558 million, up 9.5% year on year, and segment profit was ¥467.246 million, up 1.7% year on year. CTO business revenue was ¥2,905.848 million, up 16.4% year on year, and segment profit was ¥245.978 million, up 39.3% year on year.」

「As a result, HPC business revenue was ¥1,639.213 million, down 14.7% year on year, and segment profit was ¥134.124 million, down 9.3% year on year. As a result, CTO business revenue was ¥1,630.600 million, up 43.5% year on year, and segment profit was ¥177.222 million, up 324.7% year on year.」

「As a result, HPC business revenue was ¥4,568.789 million, down 3.4% year on year, and segment profit was ¥459.636 million, up 33.1% year on year. CTO business revenue was ¥2,495.643 million, up 12.5% year on year, and segment profit was ¥176.606 million, up 118.7% year on year.」

「Although sales to private-sector companies remained firm, revenue declined year on year due to sluggish sales to universities and other public research institutions, as well as the reaction to the large projects secured by the Vietnamese subsidiary in the same period of the previous year. Import costs continued to trend higher due to the weaker yen, but profitability improved as the company tightened project management and secured a certain level of margins. Selling, general and administrative expenses also declined as hiring eased and the company continued to cut selling expenses, resulting in higher segment profit year on year. As a result, HPC business revenue was ¥1,921.912 million, down 5.9% year on year, and segment profit was ¥147.881 million, up 37.3% year on year. Although sales to new customers were at the same level as in the same period of the previous year, revenue increased year on year as sales to existing customers remained firm. Profitability deteriorated and margins declined as the company responded to higher component prices and cost-cutting requests from some existing customers. Selling, general and administrative expenses also increased year on year, resulting in lower segment profit. As a result, CTO business revenue was ¥1,136.429 million, up 1.0% year on year, and segment profit was ¥41.724 million, down 39.9% year on year.」

「Revenue from the HPC Business was ¥4,727.660 million and segment profit was ¥345.237 million. Revenue from the CTO Business was ¥2,217.669 million and segment profit was ¥80.742 million.」

「As a result, revenue from the HPC Business was ¥3,693.642 million and segment profit was ¥346.412 million. Revenue from the CTO Business was ¥1,865.144 million and segment profit was ¥105.935 million.」

「As a result, revenue for the second quarter cumulative consolidated period was ¥3,167.548 million, operating profit was ¥177.082 million, ordinary profit was ¥125.422 million, and net income attributable to owners of the parent was ¥92.853 million. Revenue from the HPC Business was ¥2,042.663 million and segment profit was ¥107.670 million. Revenue from the CTO Business was ¥1,124.885 million and segment profit was ¥69.411 million.」

「As a result, revenue from the HPC Business was ¥979.151 million and segment profit was ¥87.717 million. Revenue from the CTO Business was ¥607.846 million and segment profit was ¥50.553 million.」

「Revenue from the HPC Business was ¥6,755.015 million, up 70.7% year on year, and segment profit was ¥157.450 million, down 63.4%. Revenue from the CTO Business was ¥2,099.161 million, up 1.6%, and segment profit was ¥101.219 million, down 54.7%.」

「The Company won its largest project ever and, although it faced various challenges, achieved record revenue for a cumulative quarterly accounting period through the coordinated efforts of its technical team. As a result, revenue from the HPC Business was ¥5,720.323 million, up 59.9% year on year, and segment profit was ¥166.471 million, down 65.9%. Revenue from the CTO Business was ¥1,549.704 million, up 9.8%, and segment profit was ¥29.891 million, down 80.1%.」

「Although sales to public research institutions such as universities remained firm, revenue declined year on year because a large project for a private-sector company was postponed. Profit margins declined because of higher raw material prices, increased import costs resulting from the yen’s depreciation and the reaction to a highly profitable large project in the previous year. Selling, general and administrative expenses also increased because of active hiring to strengthen the organization for achieving the medium-term management plan, resulting in a segment loss. As a result, revenue from the HPC Business was ¥1,147.542 million, down 19.2% year on year, and the segment loss was ¥91.712 million, compared with segment profit of ¥85.323 million in the same quarter of the previous year. Sales to existing customers remained strong, supported by a recovery in amusement equipment demand, while sales to new customers remained firm. However, profit margins declined because of higher raw material prices, increased import costs resulting from the yen’s depreciation and deteriorating profitability due to cost-reduction requests from some customers. Although selling, general and administrative expenses increased because of higher personnel costs and other factors, revenue increased year on year, but the Company recorded a segment loss. As a result, revenue from the CTO Business was ¥949.848 million, up 16.3% year on year, and the segment loss was ¥22.662 million, compared with segment profit of ¥52.383 million in the same quarter of the previous year.」

「Although performance remained firm both for public research institutions such as universities and for private-sector companies, profit margins declined because of higher raw material prices, increased import costs resulting from the yen’s depreciation and the reaction to a highly profitable large project in the previous year. Selling, general and administrative expenses also increased because of active hiring to strengthen the organization for achieving the medium-term management plan. Although revenue increased year on year, the Company recorded a segment loss.」

「Revenue from the HPC Business was ¥3,956.677 million, up 0.1% year on year, and segment profit was ¥430.096 million, down 12.9%. Revenue from the CTO Business was ¥2,065.207 million, up 10.1%, and segment profit was ¥223.221 million, up 22.1%.」

「Sales to private-sector companies remained strong, including a large order for a deep-learning computer from a major company. However, revenue declined year on year because demand from public research institutions such as universities was weak due to the impact of COVID-19 and the reaction to the special demand from supplementary budgets in the previous year. The Company has been actively hiring personnel to strengthen its sales and technical capabilities in order to achieve its medium-term management plan, and selling, general and administrative expenses increased due to the increase in personnel, resulting in lower segment profit. As a result, revenue from the HPC Business was ¥3,577.801 million, down 2.2% year on year, and segment profit was ¥487.857 million, down 12.7%. Sales to semiconductor-related industries recovered amid the global expansion of semiconductor production, while sales to existing customers also recovered as capital investment by medical institutions and shipments of amusement equipment, both of which had been weak in the previous year, recovered. New projects remained weak due to the reactionary decline from a large project for a retailer in the previous year, but revenue increased year on year as sales to existing customers recovered. Although selling, general and administrative expenses increased due to the increase in personnel and other factors, segment profit increased as a result of higher revenue and improved profit margins. As a result, revenue from the CTO Business was ¥1,411.686 million, up 1.4% year on year, and segment profit was ¥150.462 million, up 2.4%.」

「As a result, revenue from the HPC Business was ¥1,419.764 million, down 6.4% year on year, and segment profit was ¥85.323 million, down 34.2%. Revenue from the CTO Business was ¥816.872 million, up 0.9%, and segment profit was ¥52.383 million, down 23.8%.」

「As a result, revenue from the HPC Business was ¥510.965 million, down 15.7% year on year, and segment profit was ¥20.414 million, up 10.6%. Revenue from the CTO Business was ¥362.906 million, up 55.9%, and segment profit was ¥15.827 million, compared with a segment loss of ¥9.464 million in the same quarter of the previous year.」

「Revenue from the HPC Business was ¥3,952.732 million, up 23.6% year on year, and segment profit was ¥493.742 million, up 65.3%. Revenue from the CTO Business was ¥1,875.369 million, up 22.8%, and segment profit was ¥182.870 million, up 2.1%.」

「Although economic activity had been restricted because of the spread of COVID-19, demand recovered rapidly, and the Company won multiple large orders from public research institutions such as universities, while the number of orders also increased. Orders from private-sector companies also remained firm, resulting in record-high revenue for a quarterly accounting period in the third quarter accounting period from 1 January 2021 to 31 March 2021.」

「Although demand from private-sector companies has been slow to recover because of restrictions on economic activity resulting from the spread of COVID-19, demand from public research institutions such as universities recovered and project sizes continued to increase, resulting in a rapid improvement in revenue and segment profit in the second quarter accounting period.」

「Although there were positive factors, including a recovery in sales to semiconductor-related industries and the acquisition of new projects from major retailers, revenue declined as the spread of COVID-19 led existing customers, including medical institutions, to restrain capital investment and delayed shipment schedules for amusement equipment, while the postponement of trade shows and other events reduced sales opportunities with new customers, resulting in weak orders.」

「In this environment, under its management philosophy of “Contributing to world peace through the power of people and computing,” the Company is working to increase earnings from its scientific and technical computing business (the “HPC Business”) and industrial computer business (the “CTO Business”).」

「The HPC Business, which provides computers for scientific and technical computing, is securing orders from its traditional customers, including university laboratories and public research institutions, while strengthening sales expansion of high-performance computers for large-scale, high-precision scientific and technical computing conducted at private-sector companies’ research laboratories and R&D centers, thereby generating orders. The CTO Business, which provides industrial embedded computers, is working to maintain orders from existing customers for semiconductor inspection equipment, medical equipment and amusement equipment, while focusing on acquiring new customers in strategic fields such as image processing, deep learning and smart factories.」

「The HPC Business, which provides computers for scientific and technical computing, is securing orders from its traditional customers, including university laboratories and public research institutions, while strengthening sales expansion of high-performance computers for large-scale, high-precision scientific and technical computing conducted at private-sector companies’ research laboratories and R&D centers, thereby generating orders.」

「The HPC Business, which provides computers for scientific and technical computing, is securing orders from its traditional customers, including university laboratories and public research institutions, while strengthening sales expansion of high-performance computers for large-scale, high-precision scientific and technical computing conducted at private-sector companies’ research laboratories and R&D centers, thereby generating orders.」

「The Company operates two businesses, the HPC Business and the CTO Business, and recognizes that expanding these businesses is necessary for its further growth and development.」