Revenue pressure from customer-requested cost reductions and delays and lost projects in the financial sector
First written in FY2017-Q3. 4 of 8 entries say "Materialised", first in FY2017. Latest entry: FY2020.
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- FY2020DroppedAnnual reportThe performance discussion for the fiscal year did not identify customer-requested cost reductions or delayed and lost financial-sector projects as specific sources of earnings pressure.
- FY2019DroppedAnnual reportIn its analysis of business and other risks and performance for the fiscal year, the Company no longer specifically referred to customer-requested cost reductions or delayed and lost financial-sector projects, instead presenting the issue as the resolution of unprofitable projects from the previous fiscal year.
- FY2019-Q3MitigatedAnnual report
「In addition to higher profit accompanying the increase in revenue, margins improved as unprofitable projects that arose in the previous fiscal year were brought to a close and productivity and quality improvement measures were implemented. Operating profit increased by ¥1.094 billion, or 42.1%, year on year to ¥3.696 billion, and ordinary profit increased by ¥1.086 billion, or 41.2%, to ¥3.722 billion.」
The Company described the unprofitable projects that arose in the previous fiscal year as having been brought to a close, and reported higher profit together with margin improvement from productivity and quality improvement measures. - FY2018MaterialisedAnnual report
「In the system integration business, the Group focused on further strengthening collaboration with partner companies and promoting related products and services, including the Convergent® collaborative business with Microsoft Japan. Although financial-sector and public-sector system development projects remained steady, the impact of unprofitable contract development projects resulted in a ¥259 million, or 1.2%, decrease in net sales to ¥21.397 billion, while operating profit increased by ¥3 million, or 0.1%, to ¥3.43 billion.」
Unprofitable projects among certain contract development projects were reflected in the full-year results as a factor behind the decline in net sales in the system integration business. - FY2018-Q3MaterialisedAnnual report
「In the system integration business, the Group focused on further strengthening collaboration with partner companies and promoting related products and services, including the Convergent® collaborative business with Microsoft Japan. Although financial-sector and public-sector system development projects remained steady, the impact of unprofitable contract development projects that arose in the first quarter resulted in a ¥277 million, or 1.7%, decrease in net sales to ¥15.824 billion and a ¥39 million, or 1.6%, decrease in operating profit to ¥2.461 billion.」
The impact of unprofitable projects that arose in the first quarter continued through the cumulative third-quarter period, resulting in year-on-year declines in net sales and operating profit in the system integration business. - FY2018-Q2MaterialisedAnnual report
「Due to the impact of unprofitable projects among certain contract development projects that arose in the first quarter, as well as higher enterprise taxes associated with tax reform, operating profit decreased by ¥14 million, or 0.9%, to ¥1.642 billion, and ordinary profit decreased by ¥61 million, or 3.6%, to ¥1.67 billion.」
Unprofitable contract development projects continued to be reflected in the cumulative second-quarter results as factors behind the declines in operating profit and ordinary profit. - FY2017MaterialisedAnnual report
「The Convergent® business expanded and nearshore development remained steady, resulting in a ¥508 million, or 2.4%, increase in net sales to ¥21.657 billion. However, operating profit decreased by ¥25 million, or 0.7%, to ¥3.427 billion due to lower earnings from financial-sector system development and other businesses.」
Lower earnings from financial-sector system development and related businesses were reflected in the full-year year-on-year decline in operating profit. - FY2017-Q3First statedAnnual report
「On the earnings front, operating profit decreased by ¥101 million, or 4.2%, to ¥2.33 billion, due to cost-reduction measures requested by customers for application maintenance and operations services, lower earnings resulting from delays in the timing of orders and lost orders for financial-sector system development and testing projects, and higher SG&A expenses, including research and development costs incurred to advance the growth strategy.」
Customer requests for cost reductions, delays in the timing of orders and lost financial-sector projects, and higher research and development costs associated with the growth strategy were reflected in the year-on-year decline in operating profit.