Worth reading
72In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Deterioration
Direction inferred from the company’s description.Scale
-1173
¥ million (year-on-year decrease in revenue)Wording
Avoiding a definitive answer
How definitive the wording is.Results for this period
Interim period (second quarter)1 April 2026 to 30 September 2026ConsolidatedJapanese GAAPNet Sales10,437¥ millionYear on year -10.1%Progress 48.1%
Operating profit-1,036¥ million
Ordinary income-1,161¥ million
Net income attributable to owners of the parent-1,749¥ million
The width of the band at each stage is based on revenue. The narrower it becomes toward the bottom, the smaller the proportion of revenue that remains as profit. The dotted outline is the full-year forecast and the band inside it is the result for this period. The progress rate is the result divided by the forecast.
Net income per share-¥66.39
Financial position at period-end
Total assets33,528¥ million
of which net assets 23,070 ¥ millionEquity ratio 68.8%vs. prior year-end -2.4pt
塗りつぶした部分が自己資本比率です。総資産のうち、返済のいらない自前の資金がどれだけかを表します。The thin vertical line indicates the level at the end of the previous fiscal year.
Segment revenueJapan ¥5,475,282 thousand (YoY -13.9%), United States ¥6,721,763 thousand (YoY -13.1%)
Segment profitJapan ¥-50,882 thousand, United States ¥-1,035,936 thousand
Regional sales¥5,475 million (YoY -13.9%), ¥4,962 million (YoY -5.4%)
Outlook and shareholder returns
Full-year earnings forecast
Net Sales¥21,700 million (YoY -9.3%)
Operating profit¥-1,500 million
Ordinary income¥-1,750 million
Net income¥-2,500 million
Revision to Earnings ForecastNet Sales Not disclosed → ¥21,700 million / Operating profit Not disclosed → ¥-1,500 million / Ordinary income Not disclosed → ¥-1,750 million / Net income Not disclosed → ¥-2,500 million
Annual Dividend Forecast17 yen → 0 yen（-100.0%）
Factors Behind Changes in Business Performance
Declines in business opportunities, product adoption and the number of cases acquired in Japan; reduced transactions with some existing customers and a relative decline in product competitiveness in the United States; intensifying competition and lower insurance reimbursement prices; an increased burden of fixed manufacturing costs due to lower production volumes at the US subsidiary; and higher import procurement costs due to the weaker yen.
Disclosure regarding the going concern assumption
No applicable matters
Change in accounting policy
基準改正に伴う変更 Noそれ以外の変更 No見積りの変更 No修正再表示 No
Changes in the scope of consolidation0 additions and 0 exclusions (no company names)
Material subsequent eventsRationalization measures, including workforce reductions affecting approximately 51 employees, will be implemented on a phased basis from 15 October 2026 at the US consolidated subsidiary Ortho Development Corporation. Retirement-related expenses and other costs are expected to be recognized in the fiscal year ending March 2027, but the total amount of the expenses and their impact on results are currently under review.
Impairment lossNot applicable (no impairment losses on fixed assets, etc. for any reportable segment)
Breakdown of extraordinary income (loss)Extraordinary income Gain on sale of non-current assets ¥4,995 thousand / Extraordinary loss Loss on disposal of non-current assets ¥15,768 thousand, Loss from discontinuation of product sales ¥8,473 thousand
Depreciation and amortization¥737,141 thousand
Availability of Supplementary Financial Results MaterialsYes
Availability of Financial Results BriefingAvailable (for institutional investors and analysts)
Issued Shares at Period-End26,475,880
Treasury Shares at Period-End122,344
| Item | Details |
|---|---|
| Fiscal Period Classification | Interim period (second quarter) |
| Accounting standards | Japanese GAAP |
| Consolidated / non-consolidated | Consolidated |
| Period Covered | 1 April 2026 to 30 September 2026 |
| Net Sales | ¥10,437 million (YoY -10.1%) |
| Operating profit | ¥-1,036 million |
| Ordinary income | ¥-1,161 million |
| Profit attributable to owners of the parent | ¥-1,749 million |
| Net income per share | -¥66.39 |
| Equity ratio | End of the current fiscal period 68.8 / End of previous period 71.2 |
| Total assets | ¥33,528 million |
| Net assets | ¥23,070 million |
| Full-year earnings forecast | Net Sales ¥21,700 million (YoY -9.3%) / Operating profit ¥-1,500 million / Ordinary income ¥-1,750 million / Net income ¥-2,500 million |
| Revision to Earnings Forecast | Net Sales Not disclosed → ¥21,700 million / Operating profit Not disclosed → ¥-1,500 million / Ordinary income Not disclosed → ¥-1,750 million / Net income Not disclosed → ¥-2,500 million |
| Annual Dividend Forecast | 17 yen → 0 yen（-100.0%） |
| Segment revenue | Japan ¥5,475,282 thousand (YoY -13.9%), United States ¥6,721,763 thousand (YoY -13.1%) |
| Segment profit | Japan ¥-50,882 thousand, United States ¥-1,035,936 thousand |
| Regional sales | ¥5,475 million (YoY -13.9%), ¥4,962 million (YoY -5.4%) |
| Depreciation and amortization | ¥737,141 thousand |
| Impairment loss | Not applicable (no impairment losses on fixed assets, etc. for any reportable segment) |
| Breakdown of extraordinary income (loss) | Extraordinary income Gain on sale of non-current assets ¥4,995 thousand / Extraordinary loss Loss on disposal of non-current assets ¥15,768 thousand, Loss from discontinuation of product sales ¥8,473 thousand |
| Disclosure regarding the going concern assumption | No applicable matters |
| Change in accounting policy | Changes due to revisions to standards No / Other changes No / Change in accounting estimate No / Restatement No |
| Changes in the scope of consolidation | 0 additions and 0 exclusions (no company names) |
| Material subsequent events | Rationalization measures, including workforce reductions affecting approximately 51 employees, will be implemented on a phased basis from 15 October 2026 at the US consolidated subsidiary Ortho Development Corporation. Retirement-related expenses and other costs are expected to be recognized in the fiscal year ending March 2027, but the total amount of the expenses and their impact on results are currently under review. |
| Availability of Supplementary Financial Results Materials | Yes |
| Availability of Financial Results Briefing | Available (for institutional investors and analysts) |
| Issued Shares at Period-End | 26,475,880 |
| Treasury Shares at Period-End | 122,344 |
| Factors Behind Changes in Business Performance | Declines in business opportunities, product adoption and the number of cases acquired in Japan; reduced transactions with some existing customers and a relative decline in product competitiveness in the United States; intensifying competition and lower insurance reimbursement prices; an increased burden of fixed manufacturing costs due to lower production volumes at the US subsidiary; and higher import procurement costs due to the weaker yen. |
Items this document does not state (8)
Operating MarginCash flows from operating activitiesCash flows from investing activitiesCash flows from financing activitiesCash and cash equivalents at end of periodPayout ratioShareholder Return PolicyOrders received and order backlog
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.In Japan, business opportunities with medical institutions, product adoption and the number of cases acquired declined. In the United States, sales of artificial knee joint products decreased due to reduced transactions with some existing customers and a relative decline in product competitiveness. In addition, the cost of sales ratio rose as a result of the increased burden of fixed manufacturing costs caused by lower production volumes at the US subsidiary and higher domestic import procurement costs due to the weaker yen.
How to read this page
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