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Presentation materials for financial results7725INTER ACTION CorporationElectrical Equipment and Precision Instruments

Financial Results Briefing Materials for the Third Quarter of the Fiscal Year Ending May 2026 (Speech Script)

Cumulative results for the first 3 quarters showed lower revenue and earnings due to weak sales of products for domestic customers, while the third quarter alone delivered higher revenue and earnings as products for overseas customers grew. The full-year earnings forecast was revised upward because sales of high-margin products exceeded expectations, among other factors, and the company also highlighted large orders from overseas customers and new AI-related businesses.

Worth reading
60In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Mixed performance
Direction inferred from the company’s description.
Scale
2.2
% (full-year revenue forecast revision rate)
Wording
Avoiding a definitive answer
How definitive the wording is.

Contents of this document

Earnings briefing transcriptThird quarter of the fiscal year ending May 20268 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥3,701 million-30.2%
Operating profit¥658 million-48.3%
Ordinary income¥797 million-37.5%
Net income¥495 million-45.1%
Gross Profit Margin60.7%
Operating profit margin17.8%
Results for the three months of the current quarter
Net Sales
¥1,570 million+24.7%
Operating profit
¥410 million+347.6%
Ordinary income
¥417 million+320.0%
Net income
¥270 million+251.2%
Operating profit margin26.1%
Quarterly earnings per share¥26.67
Full-year earnings forecast
Net Sales
¥4,767 million
Operating profit
¥722 million
Ordinary income
¥858 million
Net income
¥534 million
Earnings per share
¥52.09
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales77.7%
Operating profit91.2%
Ordinary income92.9%
Net income92.6%
What the company explained in this material
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • AssumptionsCapital investment by major overseas customers
    DetailsExpected to gather momentum from January 2026 through March 2027
  • AssumptionsCapital investment demand from major domestic customers
    DetailsExpected to recover over the medium to long term
New initiatives
  • Develop semiconductor-related measurement product ③, scheduled for launch in 2027
  • Build partnerships with AI-related companies and explore AI solution services
  • Develop products for wearable AI devices
  • Expand the pupil module® business for major overseas customers
Key KPIsA metric the company considers important as a management benchmark.
  • Base revenue¥626 million
  • Orders received (consolidated)¥2,985 million
    Year on year against the same period last year-17.9%
  • Order backlog (consolidated)¥923 million
    Year on year against the same period last year-48.2%
  • Gross profit margin60.7 %
  • ROE (consolidated)
Segment results
IoT Business
Net Sales
¥2,345 million-26.1%
Orders received
¥2,009 million+4.0%
Order backlog
¥677 million-40.1%
Industry 4.0 Promotion Business
Net Sales
¥1,346 million-13.5%
Orders received
¥975 million-25.1%
Order backlog
¥245 million-17.5%
Other
Net Sales
¥9 million-98.3%
Medium-term management plan targets
Base revenue
Target value¥3,000 million
Target fiscal year2030
Gross Profit Margin
Target value50.0% or higher
Target fiscal year2030
Operating income per employee
Target value¥30 million
Target fiscal year2030
Operating profit growth
Target value15.0% or higher
Target fiscal year2030
ROE (consolidated)
Target value15.0% or higher
Target fiscal year2030
Comparison with actual resultsBase revenue: ¥626 million; gross profit margin: 60.7%
Financial targets
ROE (consolidated)
Target value15.0% or higher
Market Size / Share
Wearable AI market size
2024US$39.7 billion
2034US$435.3 billion
GrowthApproximately 11-fold
Domestic share of pupil modules50%
Orders received and order backlog
Consolidated orders received
¥2,985 million-17.9%
Consolidated order backlog
¥923 million-48.2%
Large orders in the IoT-related business
¥2,278 million
Contents of this document
ItemDetails
Document typeEarnings briefing transcript
Fiscal Period CoveredThird quarter of the fiscal year ending May 2026
Net Sales¥3,701 million (YoY -30.2%)
Operating profit¥658 million (YoY -48.3%)
Ordinary income¥797 million (YoY -37.5%)
Net income¥495 million (YoY -45.1%)
Gross Profit Margin60.7%
Operating profit margin17.8%
Results for the three months of the current quarterNet Sales ¥1,570 million (YoY +24.7%) / Operating profit ¥410 million (YoY +347.6%) / Ordinary income ¥417 million (YoY +320.0%) / Net income ¥270 million (YoY +251.2%) / Operating profit margin 26.1% / Quarterly earnings per share ¥26.67
Full-year earnings forecastNet Sales ¥4,767 million / Operating profit ¥722 million / Ordinary income ¥858 million / Net income ¥534 million / Earnings per share ¥52.09
Progress against full-year forecastNet Sales 77.7% / Operating profit 91.2% / Ordinary income 92.9% / Net income 92.6%
Segment resultsIoT Business Net Sales ¥2,345 million (YoY -26.1%) / Orders received ¥2,009 million (YoY +4.0%) / Order backlog ¥677 million (YoY -40.1%) / Profit Not disclosed / Industry 4.0 Promotion Business Net Sales ¥1,346 million (YoY -13.5%) / Orders received ¥975 million (YoY -25.1%) / Order backlog ¥245 million (YoY -17.5%) / Profit Not disclosed / Other Net Sales ¥9 million (YoY -98.3%) / Profit Not disclosed
Key KPIsIndicator name Base revenue / Value ¥626 million / Year on year against the same period last year Not disclosed, Indicator name Orders received (consolidated) / Value ¥2,985 million / Year on year against the same period last year ¥-17.9 million, Indicator name Order backlog (consolidated) / Value ¥923 million / Year on year against the same period last year ¥-48.2 million, Indicator name Gross profit margin / Value 60.7 % / Year on year against the same period last year Not disclosed, Indicator name ROE (consolidated) / Value Not disclosed / Year on year against the same period last year Not disclosed
Assumptions Underlying the Business OutlookAssumptions Capital investment by major overseas customers / Details Expected to gather momentum from January 2026 through March 2027, Assumptions Capital investment demand from major domestic customers / Details Expected to recover over the medium to long term
Medium-term management plan targetsBase revenue Target value ¥3,000 million / Target fiscal year ¥2030 million / Gross Profit Margin Target value 50.0% or higher / Target fiscal year 2030 / Operating income per employee Target value ¥30 million / Target fiscal year ¥2030 million / Operating profit growth Target value 15.0% or higher / Target fiscal year 2030 / ROE (consolidated) Target value 15.0% or higher / Target fiscal year 2030 / Comparison with actual results Base revenue: ¥626 million; gross profit margin: 60.7%
Financial targetsROE (consolidated) Target value 15.0% or higher / Actual value Not disclosed
Orders received and order backlogConsolidated orders received ¥2,985 million (YoY -17.9%) / Consolidated order backlog ¥923 million (YoY -48.2%) / Large orders in the IoT-related business ¥2,278 million
Market Size / ShareWearable AI market size 2024 US$39.7 billion / 2034 US$435.3 billion / Growth Approximately 11-fold / Domestic share of pupil modules 50%
New initiativesDevelop semiconductor-related measurement product ③, scheduled for launch in 2027, Build partnerships with AI-related companies and explore AI solution services, Develop products for wearable AI devices, Expand the pupil module® business for major overseas customers
Items this document does not state (12)
Selling, general and administrative expensesSelf-assessment against the planBreakdown of Factors Affecting the ChangeUnit price and quantity metricsNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookAnnual DividendPayout ratioAcquisition of treasury sharesCapital expendituresKey points of the Q&A

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.

This reflects, among other factors, stronger-than-expected sales of high-margin products in the IoT-related business. The decline in revenue and earnings for the first 3 quarters was mainly due to weak sales of products for domestic customers in the IoT-related business.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Financial Results Briefing Materials for the Third Quarter of the Fiscal Year Ending May 2026 (Speech Script) | INTER ACTION Corporation (7725) timely disclosure | Komori