Decline in orders due to price competition for EAP stress-check contracts and diversification of outsourcing providers
First written in FY2020-Q3. 3 of 6 entries say "Restated". Latest entry: FY2021.
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- FY2021RestatedAnnual report
「Stress-check operations were affected by postponements and budget reductions resulting from deteriorating customer performance.」
The impact of postponements and customer budget reductions on stress-check operations continued, and revenue in the IT services business fell 20.9% from the previous fiscal year. - FY2021-Q3RestatedAnnual report
「In the IT services business, the current quarter continued to be affected by the cancellation and postponement of in-person events due to COVID-19, as in the second quarter, with the impact on questionnaire and test-administration operations continuing. Stress-check operations were also affected by postponements and customer budget reductions resulting from deteriorating customer performance, and revenue related to stress checks fell 12.4% from the previous quarter.」
The impact of cancellations and postponements of in-person events, delays in conducting stress checks, and customer budget reductions continued, and revenue related to stress checks fell 12.4% from the previous quarter. - FY2021-Q2RestatedAnnual report
「In the IT services business, the impact of COVID-19 showed signs of easing during the current quarter compared with the first quarter, but questionnaire and test-administration operations continued to be affected by the cancellation and postponement of in-person events. Stress-check operations were also affected by postponements and customer budget reductions resulting from deteriorating customer performance, and revenue related to stress checks fell 18.5% from the previous quarter.」
Although the impact of the infection showed signs of easing, event cancellations and postponements, delays in conducting stress checks, and customer budget reductions continued, and revenue related to stress checks fell 18.5% from the previous quarter. - FY2021-Q1WorsenedAnnual report
「Stress-check projects were affected by postponements and customer budget reductions resulting from deteriorating customer performance. As overall workloads declined, we took measures including reducing labor costs by using employment adjustment subsidies during temporary shutdowns. However, revenue totaled ¥60 million (¥132 million in the previous quarter, down 54.7% year on year), resulting in an operating loss of ¥19 million (compared with operating profit of ¥10 million in the previous quarter).」
Stress-check projects were affected by postponements and customer budget reductions, and revenue in the IT services business fell 54.7% year on year, resulting in an operating loss of ¥19 million. - FY2020WorsenedAnnual report
「Orders for stress-check projects received from EAP service providers declined 21.3% from the previous fiscal year due to intensifying price competition and the tendency of EAP service providers to diversify their subcontractors. The impact of COVID-19 became more pronounced from April 2020, resulting in fewer new inquiries and postponed business discussions, while the cancellation and postponement of in-person events affected questionnaire and test-administration operations.」
The decline in stress-check projects due to price competition and diversification of subcontractors widened to 21.3% from the previous fiscal year. In addition, COVID-19 affected inquiries, business discussions, and operations related to in-person events. - FY2020-Q3MaterialisedAnnual report
「During the current quarter, orders for stress-check projects received from EAP service providers declined 19.9% year on year due to intensifying price competition and the tendency of EAP service providers to diversify their subcontractors. In addition, the offsetting of revenue and costs for some projects affected results, with revenue totaling ¥362 million (¥449 million in the previous quarter, down 19.3% year on year) and operating profit totaling ¥39 million (¥62 million in the previous quarter, down 36.7% year on year).」
Stress-check projects declined 19.9% year on year against a backdrop of intensifying price competition and diversification of subcontractors, resulting in lower revenue and operating profit in the IT services business.