Deteriorating profitability due to higher development costs and delayed technology responses
First written in FY2022. 2 of 3 entries say "Restated". Latest entry: FY2025.
The whole theme swung hardest in 2024: 19 of 45 companies on the "Worse" side.
32 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「If profitability declines below the initial assumptions or development costs exceed those assumptions, higher depreciation expenses may pressure profit. If the assets developed are judged not to be generating the expected cash flows, an impairment loss may arise.」
The risks relating to software investment, higher development costs, lower profitability and impairment continue. Intangible assets were ¥416,258 thousand in FY2025, and no impairment loss was recorded. - FY2023RestatedAnnual report
「If software development beyond expectations becomes necessary, higher depreciation expenses may pressure profit. If the expected revenue cannot be generated and an operating loss is recorded, an impairment loss may also arise.」
The risks of higher development costs, failure to achieve revenue and delays in responding to technologies such as AI have continued. Intangible assets were ¥220,135 thousand in FY2023, and no impairment loss was recorded. - FY2022First statedAnnual report
「If software development beyond expectations becomes necessary, higher depreciation expenses may pressure profit. If the expected revenue cannot be generated and an operating loss is recorded, an impairment loss may also arise.」
Delays in responding to advances in service-delivery technology, including AI, are also identified as a risk.