Conversion to a Technology Center and Partial In-House Development

「On the profit front, selling expenses increased as sales hours devoted to securing development projects rose. However, profit margins improved significantly as a result of restraining outsourcing costs through the thorough in-house execution of operations, resulting in higher profit than in the previous fiscal year.」

「On the profit front, selling expenses increased as sales hours devoted to securing development projects rose. However, profit margins improved significantly as a result of restraining outsourcing costs through the thorough in-house execution of operations, resulting in higher profit than in the previous fiscal year.」

「In terms of profit, the company worked to improve profitability by controlling outsourcing costs and actively bringing work in-house. However, profit declined year on year due to the negative impact of lower revenue and the occurrence of indirect work, including sales activities to win development projects.」

「During the current consolidated fiscal year, revenue was approximately level with the previous fiscal year, due to the company’s focus on winning projects with a high in-house production ratio, with a view to reducing outsourcing costs and further developing its in-house systems development personnel, as well as stable orders for development projects from existing customers. In terms of profit, the company strengthened recruitment of in-house personnel and raised employees’ base pay to actively bring contracted development projects in-house, while reducing outsourcing costs and working to improve profit efficiency. However, profit declined from the previous fiscal year due mainly to an increase in fees paid resulting from higher management guidance fees to the parent company.」

「During the first 3 quarters of the current consolidated fiscal year, revenue declined year on year, as the company focused on winning projects with a high in-house production ratio, with a view to reducing outsourcing costs and further developing its in-house systems development personnel, despite the steady continuation of orders for development projects from existing customers. On the cost side, personnel expenses increased due to base-pay increases for employees, and fees paid increased due to higher management guidance fees to the parent company. However, the company reduced outsourcing costs through the active internalisation of contracted development projects and worked to improve profit efficiency, resulting in profit remaining at approximately the same level as in the corresponding period of the previous year.」

「The company focused on winning projects with a high in-house production ratio, with a view to reducing the outsourcing ratio and further developing its in-house systems development personnel.」

「During the current consolidated fiscal year, the staffing services and systems development divisions performed steadily, due to increased operating hours for staffing services and an increase in outsourced-service projects against the backdrop of the spread of telework resulting from the COVID-19 pandemic, continued orders for development projects related to business automation and efficiency improvements and projects related to improving the operating environment, improved margins resulting from a lower outsourcing ratio, and efforts to improve profitability by reviewing staff allocation.」

「During the first 3 quarters of the current consolidated fiscal year, the staffing services and systems development divisions performed steadily, due to increased operating hours for staffing services against the backdrop of the spread of telework resulting from the COVID-19 pandemic, continued orders for development projects related to business automation and efficiency improvements and projects related to improving the operating environment, and improved margins resulting from a lower outsourcing ratio. As a result, segment revenue was ¥906.534 million, up 5.5% year on year, and segment profit was ¥74.116 million, up 48.0% year on year.」

「During the second quarter, the staffing services and system development divisions remained solid, supported by continued orders for development projects involving business automation and efficiency gains and projects involving environmental development, against the backdrop of the spread of teleworking due to the COVID-19 pandemic. Profitability also improved as the outsourcing ratio declined. As a result, segment revenue was ¥603.892 million, up 12.5% year on year, and segment profit was ¥43.682 million, up 163.7%.」

「During the first quarter, the staffing services and system development divisions remained solid, supported by continued orders for development projects involving business automation and efficiency gains and projects involving environmental development, against the backdrop of the spread of teleworking due to the COVID-19 pandemic. Profitability also improved as the outsourcing ratio declined.」

「During the consolidated fiscal year, demand increased for projects involving business improvements such as automation, efficiency gains and environmental development, driven by the spread of teleworking due to the COVID-19 pandemic. The staffing services division continued to receive stable orders from existing customers, while the system development division controlled cost of sales by reviewing its outsourcing providers, resulting in substantial increases in revenue and profit.」

「During the third quarter, the contract development division remained stable in acquiring contracts from existing customers, while profitability improved through bringing development personnel in-house and operational efficiency increased under the remote-working structure. As a result, revenue and profit both increased.」

「Contract wins from existing customers remained stable, the company focused on bringing development personnel in-house, and operational efficiency under the work-from-home arrangement improved. As a result, the contract development division showed a significant recovery from the same period of the previous year and remained profitable after returning to the black.」

「Segment profit was ¥10 million, down 2.6% year on year, due in part to lower expenses resulting from cost-control measures implemented during the COVID-19 pandemic and the recovery in the profit margin from the second half.」

「In terms of earnings, although subcontracting costs for urgent projects increased in the first quarter, orders for development projects remained stable from around October 2020, and the segment turned profitable in the third quarter, resulting in a cumulative segment loss of ¥30 million, compared with a loss of ¥34 million in the same period of the previous year.」

「Segment profit and EBITDA both increased year on year, due in part to lower outsourcing costs resulting from bringing system development in-house.」

「Although earnings in the system development business are expected to remain concentrated in the second half, as in previous years, the segment loss narrowed due to steady acquisition of external orders, reductions in subcontracting costs related to systems engineering, and efforts to bring work in-house. As a result, revenue was ¥244 million, down 1.0% year on year; the segment loss was ¥5 million, compared with a segment loss of ¥9 million; and EBITDA was negative ¥2 million, compared with negative ¥3 million.」

「The system development business provided staffing services for systems engineering and back-office operations, PC data erasure and recycling services, contract development of embedded systems, server construction, operation and maintenance, and sales of the medical image display software “FVT-air.” As the technology center for the Group, it also pursued initiatives to reduce costs by bringing part of the development organization in-house.」

「The system development business provided staffing services for systems engineering and back-office operations, PC data erasure and recycling services, contract development of embedded systems, server construction, operation and maintenance, and sales of the medical image display software “FVT-air.” As the technology center for the Group, it also pursued initiatives to reduce costs by bringing part of the development organization in-house.」

「The system development business provided staffing services for systems engineering and back-office operations, PC data erasure and recycling services, contract development of embedded systems, server construction, operation and maintenance, and sales of the medical image display software “FVT-air.” As the technology center for the Group, it also pursued initiatives to reduce costs by bringing part of the development organization in-house.」