Dependence on Government Agency Demand and Defense Plans
First written in FY2016. 17 of 38 entries say "Restated". Latest entry: 2026-07-30.
Nippon Avionics moved to the "Worse" side of this theme in 2016, 3 years before the typical company in this theme (2019).
The whole theme swung hardest in 2024: 7 of 31 companies on the "Worse" side.
26 other companies' latest entry also says "Restated".
- 2026-07-30RestatedEarnings
「Against the backdrop of high defense budgets, the Information Systems business recorded orders of ¥15,684 million, down 3.5% year on year, and net sales of ¥7,240 million, up 80.1%. Segment profit increased by ¥1,188 million to ¥1,742 million as a result of higher net sales. The order backlog at the end of the quarter was ¥38,102 million, up 17.3% year on year.」
Against the backdrop of high defense budgets, net sales, segment profit and the order backlog in Information Systems increased. No change in the underlying structure based on government and defense demand was disclosed. - FY2026MitigatedAnnual report
「Against a backdrop of high defense budgets, Information Systems recorded order intake of ¥33,275 million, up 44.5% year on year, and revenue of ¥23,858 million, up 48.8% year on year. Segment profit reached ¥5,096 million, an increase of ¥2,050 million year on year, as a result of higher revenue.」
With defense budgets remaining at high levels, Information Systems order intake, revenue and segment profit increased. Dependence on government demand remains, but the impact of demand risk in the current year was partly absorbed. - FY2026-H1MitigatedAnnual report
「Information Systems benefited from defense budgets remaining at high levels. Equipment demand in Electronic Equipment is recovering, driven by increased demand for data servers and growing attention to monitoring waste, including naturally ignited batteries.」
With defense budgets remaining at high levels, Information Systems recorded order intake of ¥22,068 million, revenue of ¥10,158 million and order backlog of ¥32,150 million. Dependence on government and defense demand remains, but the impact of demand risk was partly absorbed during the interim period. - FY2025MitigatedAnnual report
「Information Systems performed steadily as increased defense spending provided a tailwind. Order intake was ¥23,033 million, up 26.7% year on year, and revenue was ¥16,031 million, up 9.3% year on year.」
Information Systems order intake and revenue increased against a backdrop of higher defense spending. Although dependence on government and defense demand remains, the impact of demand risk in the current year was partly absorbed. - FY2025-H1MitigatedAnnual report
「Information Systems performed well because of increased demand accompanying higher defense spending.」
Information Systems performed well during the interim period due to increased demand accompanying higher defense spending, although dependence on government and defense demand remains. - FY2024MitigatedAnnual report
「Information Systems performed well as increased defense spending provided a tailwind and drove a substantial increase in demand.」
Against a backdrop of increased defense spending and proposal activity, Information Systems revenue increased 18.7% year on year and segment profit was ¥2,640 million. Dependence on government demand remains, but the impact of demand risk in the current period was partly absorbed. - FY2024-Q3MitigatedAnnual report
「Information Systems benefited from increased defense spending, and market conditions moved in a favorable direction. …Order intake was ¥13,724 million, up 20.9% year on year, revenue was ¥10,820 million, up 25.3% year on year, and segment profit was… ¥1,906 million, an increase of ¥929 million year on year.」
Information Systems market conditions improved against a backdrop of increased defense spending, leading to higher order intake, revenue and segment profit. Dependence on government demand remains, but the impact of demand risk was partly absorbed this quarter. - FY2024-Q2MitigatedAnnual report
「As a result of aggressive sales expansion efforts, Information Systems order intake rose 62.0% year on year to ¥10,033 million, revenue increased 41.7% to ¥7,016 million, and segment profit reached ¥1,183 million, up ¥757 million year on year, following a substantial increase in revenue and continued efforts to improve profitability. Although revenue continued to exceed the previous year's level, year-end order backlog stood at ¥12,738 million, up 32.9% year on year and at a high level compared with the end of the previous fiscal year.」
Order intake, revenue, segment profit and order backlog increased in Information Systems, including defense-related business. Dependence on government demand remains, but the impact of risk was partly absorbed this quarter through sales expansion efforts and defense-related demand. - FY2024-Q1MitigatedAnnual report
「Information Systems benefited from higher defense budgets and increased proposal activity. Order intake was ¥3,087 million, up 2.4% year on year, and revenue was ¥2,952 million, up 40.4% year on year. Segment profit was ¥490 million, an increase of ¥455 million year on year, as a result of higher revenue and continued efforts to improve profitability.」
Information Systems delivered higher revenue and profit as a result of increased defense budgets and expanded proposal activity. Segment profit was ¥490 million, up ¥455 million year on year. Dependence on government demand remains, but the impact of demand-related factors was partly absorbed this quarter. - FY2023RestatedAnnual report
「Because the Information Systems business of our corporate group serves government agencies, including the space and defense sectors, it is affected by trends in government demand and the business strategies of major defense manufacturers with which we have direct contracts. In particular, the scale and content of defense budgets could affect our defense-related products over the medium term.」
The filing continued to note the potential impact of dependence on government demand, as well as the business strategies of major defense manufacturers with which the company has direct contracts and the scale and content of defense budgets. - FY2023-Q3RestatedAnnual report
「In Information Systems, we are also advancing proposals for future projects while closely monitoring developments in defense-related budgets.」
It was explained that proposals for future projects are being advanced while continuing to recognize the business environment's dependence on developments in defense-related budgets. No change in the underlying dependence on government demand was noted. - FY2023-Q2RestatedAnnual report
「As a result of efforts to win orders for large-scale projects and others, Information Systems order intake increased substantially to ¥6,193 million, up 81.9% year on year, and order backlog rose substantially to ¥9,587 million, up 81.1% year on year. Meanwhile, revenue was ¥4,950 million, down 8.9% year on year, because it was more heavily weighted toward the second half than in the previous year.」
Order intake and order backlog increased substantially as a result of efforts to win orders for large-scale projects, while revenue declined this quarter because it was weighted toward the second half. The timing fluctuations and demand dependence of government-related projects have continued. - FY2023-Q1RestatedAnnual report
「Information Systems revenue declined because delivery deadlines for major projects were concentrated from the second quarter onward in the current period, while order intake and order backlog increased substantially year on year.」
Information Systems revenue declined this quarter because delivery deadlines for major projects were concentrated later in the period, while order intake and order backlog increased substantially. The impact of timing fluctuations in government-related projects has continued. - FY2022RestatedAnnual report
「Information Systems reported declines in both order intake and revenue because major projects were between phases.」
The decline in order intake and revenue from government-related Information Systems projects due to major projects being between phases also emerged in the current year. - FY2022-Q3RestatedAnnual report
「Orders for information systems declined because the main projects were between phases.」
It was explained that Information Systems order intake declined because major projects were between phases, and that the impact of fluctuations in government-related projects and demand has continued. - FY2022-Q2RestatedAnnual report
「Orders for information systems declined because the main projects were between phases.」
The decline in Information Systems order intake due to major projects being between phases was noted, and the impact of demand fluctuations has continued. - FY2022-Q1RestatedAnnual report
「Orders for information systems declined because the main projects were between phases.」
It was explained that order intake in Information Systems declined because major projects were between phases. Meanwhile, revenue and segment profit increased, partly offsetting the impact of demand fluctuations. - FY2021RestatedAnnual report
「As a result, orders increased and segment profit also rose despite the lack of growth in domestic procurement by the Ministry of Defense.」
Weak domestic procurement by the Ministry of Defense continued. However, integrated sales and production order-taking activities and QCD improvements enabled information systems to increase revenue and profit, partially absorbing the impact of demand-dependence risk. - FY2021-Q3RestatedAnnual report
「Although domestic procurement by the Ministry of Defense remained weak, information systems focused on order-taking activities and pursued QCD (quality, cost and delivery) improvements to enhance profitability. As a result, revenue increased and segment profit and loss improved substantially as the Company worked to reduce overhead expenses.」
Weak domestic procurement by the Ministry of Defense continued to be noted. However, order-taking activities, QCD improvements and overhead reductions enabled information systems to increase revenue and return to profitability, partially absorbing the impact of demand risk. - FY2021-Q2RestatedAnnual report
「Although domestic procurement by the Ministry of Defense remained weak, information systems undertook initiatives to improve QCD (quality, cost and delivery) and increase gross profit from the time of order receipt to improve profitability. As a result, segment profit and loss improved despite lower revenue.」
Weak domestic procurement by the Ministry of Defense continued, and information systems revenue fell 0.8% year on year. However, the segment loss improved through QCD improvements and other measures, with no new deterioration from the risk indicated despite its continued impact. - FY2021-Q1MaterialisedAnnual report
「Although domestic procurement by the Ministry of Defense remained weak, orders held at the previous year's level as orders for display- and audio-related equipment increased, while revenue declined mainly because that equipment performed poorly. Segment profit and loss deteriorated due to lower revenue. Revenue for the segment was ¥2,208 million, down 8.0% year on year. The segment posted a loss of ¥168 million, a ¥49 million deterioration year on year.」
With weak domestic procurement by the Ministry of Defense continuing, information systems revenue fell 8.0% year on year and the segment loss worsened to ¥168 million. The impact of government-demand dependence risk again appeared in the current quarter's results. - FY2020RestatedAnnual report
「Although information systems were affected by weak domestic procurement by the Ministry of Defense, revenue increased as display- and audio-related equipment remained firm.」
Weak domestic procurement by the Ministry of Defense continued. However, the firm performance of display- and audio-related equipment drove information systems revenue to ¥11,920 million, up 2.4% from the previous fiscal year. - FY2020-Q3RestatedAnnual report
「Although information systems were affected by weak domestic procurement by the Ministry of Defense, revenue increased as display- and audio-related equipment remained firm.」
Weak domestic procurement by the Ministry of Defense continued. However, information systems revenue increased, driven in part by the firm performance of display- and audio-related equipment, partially absorbing the impact of demand risk. - FY2020-Q2RestatedAnnual report
「Although information systems were affected by weak domestic procurement by the Ministry of Defense, revenue increased as display- and audio-related equipment remained firm. Segment profit and loss improved due to higher revenue, lower costs and a decline in unprofitable projects compared with the previous year.」
Weak domestic procurement by the Ministry of Defense continued. However, the firm performance of display- and audio-related equipment, higher revenue, lower costs and fewer unprofitable projects partially absorbed the impact on information systems. Revenue was ¥5,638 million, and the segment loss was ¥103 million. - FY2020-Q1RestatedAnnual report
「Although information systems were affected by weak domestic procurement by the Ministry of Defense, revenue increased as orders grew and display- and audio-related equipment remained firm.」
Weak domestic procurement by the Ministry of Defense continued. However, information systems revenue rose 25.7% year on year, driven in part by higher orders, partially absorbing the impact of demand risk. - FY2019RestatedAnnual report
「Although information systems were affected by weak domestic procurement by the Ministry of Defense, revenue increased because the opening order backlog was high.」
Weak domestic procurement by the Ministry of Defense continued. However, the high opening order backlog drove information systems revenue up 20.3% year on year, partially absorbing the impact of demand risk. - FY2019-Q3MaterialisedAnnual report
「Although information systems were affected by weak domestic procurement by the Ministry of Defense, revenue increased because the opening order backlog was high. Segment profit and loss remained in the red because costs worsened on some unprofitable projects, but improved due to higher revenue and reduced overhead expenses. Revenue for the segment was ¥7,574 million, up 20.4% year on year. The segment posted a loss of ¥510 million, an improvement of ¥252 million year on year.」
Weak domestic procurement by the Ministry of Defense continued. The high opening order backlog drove revenue higher, but information systems posted a segment loss of ¥510 million. - FY2019-Q2MaterialisedAnnual report
「Although information systems were affected by weak domestic procurement by the Ministry of Defense, revenue increased because the opening order backlog was high. Segment profit and loss deteriorated into a substantial loss because costs worsened on some unprofitable projects, despite higher revenue and efforts to reduce overhead expenses. Revenue for the segment was ¥4,568 million, up 2.8% year on year. The segment posted a loss of ¥437 million, an improvement of ¥32 million year on year.」
Weak domestic procurement by the Ministry of Defense continued. The high opening order backlog drove revenue to ¥4,568 million, up 2.8% year on year, but deteriorating costs on some unprofitable projects resulted in a segment loss of ¥437 million. - FY2019-Q1MaterialisedAnnual report
「Although information systems were affected by weak domestic procurement by the Ministry of Defense, revenue increased because the opening order backlog was high. Segment profit and loss deteriorated because the Company recognized a provision for estimated future losses on projects with deteriorating costs, despite the increase in gross profit accompanying higher revenue.」
Weak domestic procurement by the Ministry of Defense continued. The high opening order backlog drove information systems revenue up 9.0% year on year, but segment profit and loss deteriorated because provisions were recognized for projects with deteriorating costs. - FY2018MaterialisedAnnual report
「Information systems revenue fell sharply due to weak domestic procurement by the Ministry of Defense and delays in the timing of revenue recognition.」
The weakness in domestic procurement by the Ministry of Defense continued to be reflected in annual revenue of ¥9,674 million, down 20.4% year on year, and a segment loss of ¥774 million. - FY2018-Q3MaterialisedAnnual report
「Information systems revenue fell by ¥1,270 million year on year to ¥6,293 million, down 16.8%, due to declining domestic procurement in the defense market. Despite efforts to reduce overhead expenses, the decline in revenue and deterioration in the cost ratio resulted in a segment loss of ¥763 million, a ¥482 million deterioration year on year.」
The decline in domestic procurement in the defense market continued to be reflected in a 16.8% decline in information systems revenue and a segment loss of ¥763 million. - FY2018-Q2MaterialisedAnnual report
「Information systems revenue fell by ¥971 million year on year to ¥4,445 million, down 17.9%, due to declining domestic procurement by the Ministry of Defense. Despite efforts to reduce overhead expenses, the decline in revenue and deterioration in the cost ratio resulted in a segment loss of ¥469 million, a ¥404 million deterioration year on year.」
The decline in domestic procurement by the Ministry of Defense continued to materialize in a 17.9% decline in information systems revenue and a segment loss of ¥469 million. - FY2018-Q1MaterialisedAnnual report
「Information systems revenue fell by ¥329 million year on year to ¥1,752 million, down 15.8%, due to declining domestic procurement by the Ministry of Defense. Despite efforts to reduce overhead expenses, the decline in revenue and deterioration in the cost ratio resulted in a segment loss of ¥445 million, a ¥220 million deterioration year on year.」
The decline in domestic procurement by the Ministry of Defense continued to materialize in a 15.8% decline in information systems revenue and a segment loss of ¥445 million. - FY2017MaterialisedAnnual report
「Information systems revenue declined due to the impact of increased overseas procurement and decreased domestic procurement by the Ministry of Defense.」
The decline in domestic procurement by the Ministry of Defense was reflected in annual revenue of ¥12,149 million, down 7.2% year on year, indicating that the risk of dependence on government demand continued to materialize. - FY2017-Q3MaterialisedAnnual report
「Information systems revenue fell by ¥2,011 million year on year to ¥7,563 million, down 21.0%, due to declining domestic procurement in the defense market.」
The decline in domestic procurement in the defense market continued to be reflected in information systems revenue, which fell 21.0%. - FY2017-Q2MaterialisedAnnual report
「Information systems revenue fell by ¥1,183 million year on year to ¥5,416 million, down 17.9%, due to declining domestic procurement in the defense market. Despite efforts to reduce overhead expenses, the decline in revenue resulted in a segment loss of ¥65 million, a ¥190 million deterioration year on year.」
The decline in domestic procurement in the defense market continued to materialize in a 17.9% decline in information systems revenue and a segment loss. - FY2017-Q1MaterialisedAnnual report
「Information systems revenue fell by ¥459 million year on year to ¥2,081 million, down 18.1%, due to declining domestic procurement in the government-demand market. Despite efforts to reduce overhead expenses, the decline in revenue and deterioration in the cost ratio resulted in a segment loss of ¥224 million, a ¥96 million deterioration year on year.」
The decline in domestic procurement in the government-demand market has materialized in the information systems segment's lower revenue and segment loss in the current quarter. - FY2016First statedAnnual report
「Because information systems are supplied to government agencies for defense, space and other applications, they are affected by trends in government demand. In particular, the scale and content of the Medium Term Defense Program may affect the Company's defense-related products over the medium term.」
The decline in domestic procurement in the government-demand market and its weak performance were reflected in the year's results, indicating that demand risk had materialized.