Stable Revenue Base Through Application and System Development and Maintenance

「During the current interim consolidated accounting period in the Technical Services business, revenue declined because of a reactionary drop following the completion of a large system development project in the previous fiscal year. The engineer dispatch business, however, continued to secure stable earnings and performed steadily.」

「During the consolidated fiscal year under review, the Technical Services business was affected by a decline in development hours following the completion in the fourth quarter of a major system development project that had continued from the previous fiscal year. The engineer dispatch business, however, continued to secure stable earnings and remained solid.」

「Development hours for the major system development project continuing from the previous fiscal year were gradually declining because the project was scheduled to launch in the fourth quarter of the current fiscal year. Although net sales declined year on year due to the reaction to the previous fiscal year's project, the engineer dispatch business remained solid. As a result, net sales were ¥74,065 thousand, down 14.9% year on year, and segment profit was ¥28,626 thousand, down 32.8%.」

「In the Technical Services business, continuing orders for a major system development project made a significant contribution to net sales, while the engineer dispatch business also remained solid. As a result, net sales were ¥190,402 thousand, up 45.9% year on year, and segment profit was ¥101,729 thousand, up 58.0%.」

「During the interim accounting period of the current fiscal year, the Technical Services business assigned some engineer dispatch personnel to the relevant projects in response to an increase in orders for system development projects, while net sales increased substantially. As a result, net sales were ¥87,068 thousand, up 74.5% year on year, and segment profit was ¥42,621 thousand, up 170.4%.」

「During the cumulative first-quarter period of the current fiscal year, the Technical Services business assigned some engineer dispatch personnel to the Company's own projects in response to an increase in orders for system development projects, while net sales increased substantially. As a result, net sales were ¥39,411 thousand, up 69.6% year on year, and segment profit was ¥17,884 thousand, up 175.6%.」

「During the current fiscal year, orders for system development projects in the Technical Services business remained solid. As a result, net sales were ¥130,486 thousand, up 27.6% year on year, and segment profit was ¥64,392 thousand, up 85.0%.」

「In the made-to-order Product business, net sales declined year on year due to the reaction to a major STB order from an existing customer in the previous fiscal year, while the Technical Services business secured solid net sales.」

「The Technical Services business provides contracted development, maintenance and implementation support for in-house corporate systems, as well as engineer dispatch services to major online retailers and major IT vendors, and secured solid net sales. As a result, net sales in the Technical Services business were ¥102,228 thousand, up 0.2% year on year.」

「The Technical Services business also secured stable net sales.」

「Although engineer dispatch services performed well during the current fiscal year, net sales from the development and maintenance business declined substantially from the previous fiscal year due to the impact of concentrating resources on the PPP business. As a result, net sales in the Technical Services business were ¥102,001 thousand, down 35.2% year on year.」

「Technical Services」

「In IT technology services, the Company provides contracted development of business systems, implementation support for IT equipment, including computers and peripherals, and maintenance services for these systems and products.」

「IT business support services provide contracted development of business systems, implementation support for IT equipment, including computers and peripherals, and maintenance services for these systems and products.」

「IT business support services secured net sales at a level close to the same period of the previous year, although」

「IT business support services, which provide application software and systems development and maintenance, have generated stable net sales through monthly maintenance fees.」

「In IT business support services, contracted development was affected by the reaction to projects completed in the previous fiscal year, while the Company primarily provided maintenance services for delivered systems and products and worked to provide them efficiently.」

「The Group delivered business wearable devices used in the work-support field to factories and warehouses for demonstration testing. Together with its IT business support services, which provide application software and systems development and maintenance, this contributed to the Group's performance for the third quarter of the current fiscal year.」

「The IT business support services provide application software and systems development and maintenance, contributing to the Company's performance for the second quarter of the current fiscal year as a stable earnings base.」