Deterioration in System Development Profitability Due to Increased Development Workload and Defect Repairs
First written in FY2024-Q1. 1 of 4 entries say "Restated". Latest entry: FY2025.
Business Coach moved to the "Worse" side of this theme in 2025, 3 years after the typical company in this theme (2022).
The whole theme swung hardest in 2024: 17 of 54 companies on the "Worse" side.
0 other companies' latest entry also says "Reframed".
- FY2025ReframedAnnual report
「Risk related to system development As the development of systems such as cloud coaching systems becomes more advanced and complex, more work than anticipated and additional measures may be required, potentially causing profitability to deteriorate.」
The focus has shifted from the development profitability risk in the former DX business to the risk of deteriorating profitability due to the increasing sophistication and complexity of the cloud coaching system, the current core business. - FY2025-H1MaterialisedAnnual report
「In IT services, we sought to ensure the execution of development projects carried over from the previous fiscal year while also expanding services to group companies of existing customers. However, as requirements definition for a large-scale development project took longer than expected, revenue was ¥68,717 thousand, down 15.6% year on year.」
The prolonged requirements definition for a large-scale development project actually occurred and was reflected in performance as a 15.6% year-on-year decline in IT services revenue. - FY2024RestatedAnnual report
「Our group is responding by establishing and strengthening project management systems covering quality, costs, schedules and other areas.」
The company continues to address the risk of deteriorating profitability in the SXi business due to increased development hours, functionality improvements and defect remediation through project management. - FY2024-Q1First statedAnnual report
「In recent years, customers' requirements regarding development periods and functionality have become more advanced and complex. We have responded by establishing and strengthening project management systems covering quality, costs, schedules and other areas. However, executing contracts may require more development hours than initially anticipated and functionality improvements, causing costs to exceed initial estimates and profitability to deteriorate. In addition, defect remediation and other measures after delivery and revenue recognition may generate additional costs, ultimately making projects unprofitable and potentially affecting our group's performance.」
The company newly disclosed the possibility of unprofitable projects in the SXi business due to increasingly advanced and complex development requirements, increased development hours, functionality improvements, and defect remediation related to IT services and other operations.