Orders for R&D Test Systems for 5G-Compatible Base Stations

「Revenue in this segment fell below the same period of the previous year because the recovery in existing customers' willingness to invest in 5G research and development did not progress and sales of the Company's core product, DuoSIM-5G, declined. Segment loss was an operating loss of ¥153.826 million, compared with an operating loss of ¥142.452 million in the same period of the previous year. The operating loss widened year on year due to the impact of lower revenue.」

「Evaluations of DuoSIM-5G, the Company's flagship 5G product, began in the development of vRAN base stations by carriers and vendors, and the Company recorded license revenue from product functionality enhancements. During the six months ended 30 September, the Company continued to focus on sales to domestic telecommunications carriers and base-station manufacturers, while also focusing on sales of new products such as the FPGA-equipped SmartNIC Griffin. It also developed and sold products in the network security field, expanded product development and sales in new fields, strengthened its development and support systems, and actively pursued overseas sales activities for 5G products.」

「During the consolidated fiscal year under review, the company continued to be affected by the slowdown in new customer investment that began in the previous consolidated fiscal year. Domestic sales fell short of expectations, while in the overseas business, although proposals were made, many projects did not result in orders and were postponed until the following consolidated fiscal year or later, resulting in performance below forecasts.」

「(Product Sales) ¥1,337.529 million (down 48.1% year on year) Revenue in this segment was ¥1,337.529 million. During the nine months ended 31 December, although the segment continued to be affected by the slowdown in new customer investment that began in the previous fiscal year, the Company continued to sell DuoSIM-5G, its flagship 5G product, to domestic telecommunications carriers and base-station manufacturers. It also focused on selling new products such as the FPGA-equipped SmartNIC Griffin, while developing and selling products in the network security field and expanding product development and sales in new fields. The Company also worked to strengthen its development and support systems and continued to actively pursue overseas sales activities for 5G products. Segment loss was an operating loss of ¥41.114 million, compared with operating profit of ¥584.255 million in the same period of the previous year.」

「Revenue in this segment was ¥3,856.385 million. In the mobile communications market, major domestic telecommunications carriers launched commercial 5G services in March 2020, and research and development for 5G is being actively pursued. During the fiscal year, the Company continued to sell DuoSIM-5G, its flagship 5G product, to domestic telecommunications carriers and base-station manufacturers. In addition, although it focused on securing new orders for testing services at the Takizawa Telecom Test Center in Takizawa, Iwate Prefecture (T3C: Takizawa Telecom Test Center), selling products for private 5G networks and other activities, revenue declined from the previous fiscal year. Segment profit was operating profit of ¥535.341 million, down 64.9% from the previous fiscal year.」

「(Mobile Network Solutions) ¥3,374.340 million (up 3.9% year on year) Revenue in this segment was ¥3,374.340 million. During the nine months ended 31 December, in addition to continuing to sell DuoSIM-5G, the flagship 5G product, to domestic telecommunications carriers and base-station manufacturers, the Company focused on expanding testing services at the Takizawa Telecom Test Center in Takizawa, Iwate Prefecture. However, domestic sales declined. Revenue increased year on year due to higher revenue from C2M, which was added to the Group in the previous fiscal year. Segment profit was operating profit of ¥961.884 million, down 34.1% year on year. This was due to the concentration of highly profitable domestic sales in the same period of the previous year.」

「Revenue from this segment was ¥2,455.213 million. During the six months ended the second quarter of the current consolidated fiscal year, the Company continued to sell DuoSIM-5G, its flagship 5G product, to domestic telecommunications carriers and base station manufacturers. It also focused on expanding testing services at the Takizawa Telecom Test Center and at 株式会社シー・ツー・エム, which was brought into the Group in the previous fiscal year. However, revenue declined year on year as domestic revenue decreased. Segment profit was an operating profit of ¥777.929 million, down 39.0% year on year.」

「The Company continued to sell DuoSIM-5G, its flagship 5G product, to domestic telecommunications carriers and base station manufacturers during the three months ended the first quarter of the current consolidated fiscal year. In addition, it focused on expanding testing services at the Takizawa Telecom Test Center in Takizawa, Iwate Prefecture (T3C: Takizawa Telecom Test Center), resulting in higher revenue year on year.」

「The Company continued to sell DuoSIM-5G, its flagship 5G product, to domestic telecommunications carriers and base station manufacturers during the consolidated fiscal year. In addition, it focused on expanding testing services at the Takizawa Telecom Test Center in Takizawa, Iwate Prefecture (T3C: Takizawa Telecom Test Center), as well as sales of products for local 5G, resulting in a substantial year-on-year increase in revenue.」

「The Company continued to sell DuoSIM-5G, its flagship 5G product, to domestic telecommunications carriers and base station manufacturers during the nine months ended the third quarter of the current consolidated fiscal year. In addition, it focused on expanding testing services at the Takizawa Telecom Test Center in Takizawa, Iwate Prefecture (T3C: Takizawa Telecom Test Center), as well as sales of products for local 5G, resulting in higher revenue year on year.」

「The Company continued to sell DuoSIM-5G, its flagship 5G product, steadily to domestic telecommunications carriers and base station manufacturers during the six months ended the second quarter of the current consolidated fiscal year. In addition, it focused on expanding testing services at the Takizawa Telecom Test Center in Takizawa, Iwate Prefecture (T3C: Takizawa Telecom Test Center), as well as sales of products for local 5G, resulting in a substantial year-on-year increase in revenue.」

「The Company continued to sell DuoSIM-5G, its flagship 5G product, to domestic telecommunications carriers and base station manufacturers during the three months ended the first quarter of the current consolidated fiscal year. In addition, it focused on expanding testing services at the Takizawa Telecom Test Center in Takizawa, Iwate Prefecture (T3C: Takizawa Telecom Test Center), resulting in a substantial year-on-year increase in revenue.」

「In the nine months ended the third quarter of the current consolidated fiscal year, sales of 5G-compatible products to telecommunications carriers and base station manufacturers continued to perform well. Testing services for base station manufacturers, which began in the previous fiscal year, also remained steady, resulting in a substantial increase in revenue from the same period of the previous year.」

「(Mobile Network Solution) ¥2,131.900 million (up 81.4% year on year) In the six months ended the second quarter of the current consolidated fiscal year, sales of 5G-compatible products to telecommunications carriers continued to perform well. Testing services for base station manufacturers, which began in the previous fiscal year, also remained steady, resulting in a substantial increase in revenue from the same period of the previous year.」

「In the three months ended the first quarter of the current consolidated fiscal year, sales of 5G-compatible products to telecommunications carriers and contracted testing services for base station manufacturers continued to perform steadily, resulting in a substantial increase in revenue from the same period of the previous year.」

「The company also began sales of DuoSIM-5G, its first flagship product for 5G, in the third quarter of the previous fiscal year. During the consolidated fiscal year under review, in addition to continuing to sell 5G-related products to domestic telecommunications carriers and base-station manufacturers, the company undertook testing services and began selling 5G-related products overseas, resulting in a substantial increase in revenue from the previous fiscal year.」

「In the third quarter, in addition to continuing sales of 5G-related products to domestic telecommunications carriers and base station manufacturers, the Company began overseas sales of 5G-related products, resulting in a substantial year-on-year increase in revenue.」

「In the six months ended the second quarter of the current consolidated fiscal year, sales of 5G-related products increased, resulting in a substantial year-on-year increase in revenue.」

「In this environment, the Company began selling DuoSIM-5G, its first flagship 5G product, in the previous third quarter. However, 5G-related revenue remained small in the first quarter. The Company also continued active research and development during the current fiscal year to expand sales of 5G-related products from the second quarter onward.」

「In the fourth quarter, as in the third quarter, the Company was able to sell test systems for research and development of 5G-compatible base stations.」

「In the third quarter, the Company was able to sell test systems for research and development of 5G-compatible base stations. However, sales of test solutions for research and development applications involving LTE-Advanced and LTE-Advanced Pro in Japan and overseas declined substantially year on year, resulting in a substantial year-on-year decline in revenue.」

「The Company secured an order for a test system for research and development of 5G-compatible base stations. However, because delivery was scheduled for the first quarter or later, sales of test solutions for research and development applications involving LTE-Advanced and LTE-Advanced Pro in Japan and overseas declined substantially year on year in the first quarter, resulting in a substantial year-on-year decline in revenue.」