Risk of fluctuations in broadcasting standards and demand trends

「Revenue in the EMEA market declined significantly from the same period of the previous year because multiple large projects that had been scheduled were postponed due to the effects of Israel's and the United States' military actions against Iran.」

「Meanwhile, the outlook remains extremely uncertain due to the prolonged geopolitical risks surrounding the situations in Russia and Ukraine and in the Middle East, the impact of U.S. trade policy, surging resource and raw material prices, rising inflation and foreign-exchange fluctuations.」

「This was due to delays in or freezes of companies' capital investment decisions resulting from U.S. trade policy, among other factors.」

「Meanwhile, revenue in the North American market decreased significantly from the same period of the previous year. This was because there were no large-scale projects during the current period comparable to those in the same period of the previous year.」

「Revenue in the Asian market decreased from the same period of the previous year because there were no sales from large-scale projects. Revenue in the North American market increased from the same period of the previous year, mainly because large-scale projects were under way at major telecommunications carriers. In Australia, the Company continued to provide maintenance support services, as in the previous period, but revenue decreased from the same period of the previous year because equipment sales declined.」

「Revenue in Asia declined year on year because there were no sales from large-scale projects.」

「Revenue in Asia declined year on year because there were no sales from large-scale projects, but order backlog increased substantially due to orders for large-scale projects. In EMEA, projects continued to make no progress due to geopolitical risks related to the situation involving Russia and Ukraine, as in the same period of the previous year.」

「Revenue in EMEA declined compared with the previous consolidated fiscal year due to the suspension of projects and other effects associated with geopolitical risks related to the situation involving Russia and Ukraine.」

「Revenue in Asia declined year on year because sales from a project for a major broadcaster in South Korea had been recorded in the same period of the previous year. Revenue in Australia also declined year on year due to lower hardware sales to major customers.」

「Revenue in Asia declined year on year because sales from a project for a major broadcaster in South Korea had been recorded in the same period of the previous year. Revenue in North America also declined because sales to major telecommunications operators decreased. Revenue in EMEA declined year on year due to project suspensions and other effects associated with geopolitical risks related to the situation involving Russia and Ukraine.」

「Revenue in EMEA declined year on year due to the suspension of projects and other effects associated with geopolitical risks related to the situation involving Russia and Ukraine.」

「Revenue in EMEA declined year on year because projects in the region were frozen as a result of the spread of COVID-19 and geopolitical issues.」

「During the nine-month period ended [the current third quarter], there were no newly arising business or other risks, nor any material changes to the business and other risks described in the Annual Securities Report for the prior fiscal year.」

「Revenue in Asia increased year on year because the company was able to record sales from a project for a broadcaster in South Korea. In North America, sales to major customers declined from the same period of the previous year, but sales to other customers increased, leaving revenue almost unchanged year on year. ……Revenue in EMEA declined year on year.」

「Revenue in EMEA declined year on year due to the suspension of projects and other effects associated with COVID-19.」

「The business environment for customers has changed significantly as new content distribution providers have entered the market via the internet in recent years, which may affect sales of the group's products and services.」

「Revenue in Asia declined year on year because the previous period included sales from Olympic-related projects in Japan, whereas there were no such sales in the current period.」

「The group expanded its business mainly overseas. Revenue in Asia increased year on year, mainly because sales of shared antenna systems and products for cable television operators increased in Japan. In North America, sales to major customers were almost unchanged from the same period of the previous year, but revenue increased because other customers made new capital investments. In Australia, revenue was almost unchanged from the same period of the previous year as the company continued maintenance support contracts with major customers. Revenue in EMEA increased year on year due to sales to Russian telecommunications operators.」

「Revenue in the North American market increased from the same period of the previous year as the market recovered from the purchasing slowdown caused by M&A involving a major customer. Revenue in the Australian market declined from the same period of the previous year. This was due to a review of maintenance support pricing and a decline in hardware product sales as major customers reduced investment in equipment upgrades. Revenue in the EMEA market declined because there was no large-scale project comparable to the Russia World Cup in the same period of the previous year. Revenue in Asian markets, including Japan, declined because, despite sales from projects related to the Tokyo Olympic Games, there were no large-scale projects for cable television operators and broadcasters comparable to those in the same period of the previous year.」

「Revenue in EMEA declined because there were no large-scale projects such as the FIFA World Cup in Russia in the same period of the previous year. Revenue in Japan declined year on year, partly because the main sales are expected in the second half.」

「Revenue for the first-quarter consolidated cumulative period was ¥314 million, down 36.4% year on year, resulting in lower revenue than in the same period of the previous year. This was because there was no large-scale event comparable to the FIFA World Cup in Russia held in the same period of the previous year, and because the main sales for the current period are expected from the second half onward.」

「This trend is particularly pronounced in North America, where competition has intensified as new entrants such as Netflix and Amazon, which provide OTT services including video and other content, have driven up the price of broadcast content. Traditional terrestrial and cable television broadcasters are being required to review their revenue models and continue to take a cautious approach to investment.」

「Revenue in the North American market declined from the same period of the previous year because the implementation of capital investment plans by some customers was delayed.」

「The North American market recorded lower sales than in the same period of the previous year because some customers were delayed in executing their capital investment plans. In Australia, the company focused mainly on maintenance services, but sales declined year on year.」

「The North American market recorded lower revenue than in the same period of the previous year because some customers were delayed in executing their capital investment plans. In Australia, the company focused mainly on maintenance services, but revenue was lower than in the same period of the previous year. In Japan, revenue was lower year on year because sales are expected to be recorded from the second quarter onward this fiscal year.」

「For these reasons, many broadcasters continue to take a cautious approach to investment.」

「Demand in the North American market remained firm for remote production, in which broadcasters control filming and editing that had traditionally been conducted at stadiums. However, revenue declined from the same period of the previous year because there were fewer large-scale projects, such as those related to the US presidential election and the Olympic Games. Revenue in the Australian market also declined from the same period of the previous year because changes in customers' investment plans made it difficult to expand adoption of the company's products.」

「However, revenue declined from the same period of the previous year as demand remained weak this fiscal year following the large number of major projects in the previous fiscal year. The Australian market was below the same period of the previous year because changes in customers' investment plans delayed the construction of new networks.」

「Demand in the North American market remained firm for remote production, in which broadcasters control filming and editing that had traditionally been conducted at stadiums, and sales to new customers increased. However, sales were lower than in the previous year because there were fewer large-scale projects, such as those related to the US presidential election and the Olympic Games. The Australian market was also lower than in the previous year due to the effects of demand having run its course.」

「Revenue declined because market activity was slower than the company had expected and demand failed to grow, … some customers changed their capital investment plans, and development of new products was delayed, among other factors.」

「The various standards for television broadcasting may differ from country to country, and the regulatory approaches also vary by country. Television broadcasting methods are currently diversifying, with new standards being established one after another.」