Forecast Revenue of ¥3,000 Million and a Return to Profitability for the Fiscal Year Ending July 2018

「As a result, revenue for the consolidated fiscal year increased year on year to ¥2,335.818 million, up 17.3%, but the substantial increase in research and development expenses for compatibility with fifth-generation (5G) communications systems resulted in an operating loss of ¥672.696 million, compared with an operating loss of ¥155.851 million in the previous fiscal year, and an ordinary loss of ¥674.144 million, compared with an ordinary loss of ¥138.826 million in the previous fiscal year.」

「Regarding the outlook for each business in the next fiscal year, the fiscal year ending July 2018, our expectations are as follows. In the mobile network segment, we expect revenue of ¥2,500 million by expanding domestic and overseas sales and testing services for overload and functional testing equipment compatible with LTE-Advanced, which is undergoing further evolution, while continuing to develop and sell products sourced from outside the Group. In the IP network business, we will accelerate sales of the packet capture tool “etherExtractor” for network monitoring applications. We also expect revenue of ¥500 million in this segment through the development and sale of new security-related products and the development and sale of products sourced from outside the Group. For the consolidated earnings forecast for the fiscal year ending July 2018, we expect revenue of ¥3,000 million, operating profit of ¥120 million, ordinary profit of ¥121 million, and net income attributable to owners of the parent of ¥78 million, driven by the development of products compatible with the fifth-generation mobile communications standard in addition to LTE-Advanced-compatible products.」