Declining Revenue and Wider Losses

「Revenue was ¥30,381 million, up 8.4% year on year. In terms of earnings, higher revenue and improved profitability, together with a ¥287 million reduction in personnel expenses resulting from lower retirement benefit obligations, resulted in operating profit of ¥2,619 million, up 51.7% year on year, ordinary profit of ¥2,650 million, up 51.9%, and net income attributable to owners of the parent of ¥1,700 million, up 57.3%.」

「Against this backdrop, revenue for the interim consolidated accounting period was ¥14,070 million, up 9.8% year on year, as demand for IT investment expanded and upgrade demand increased following the end of support for Windows 10, resulting in higher revenue from information and communications equipment, including servers, system engineering services and field services. In terms of earnings, higher revenue and improved profitability resulted in operating profit of ¥956 million, up 56.1% year on year, ordinary profit of ¥965 million, up 60.8%, and interim net income attributable to owners of the parent of ¥620 million, up 61.1%.」

「Revenue was ¥28,025 million, up 11.3% year on year. In terms of earnings, higher revenue and a ¥180 million reduction in personnel expenses resulting from lower retirement benefit obligations resulted in operating profit of ¥1,727 million, up 7.4% year on year, ordinary profit of ¥1,744 million, up 5.3%, and net income attributable to owners of the parent of ¥1,080 million, up 3.4%.」

「Against this backdrop, revenue for the interim consolidated accounting period was ¥12,819 million, up 12.0% year on year, as information and communications equipment, including servers and PCs, field services and system engineering services posted higher revenue. In terms of earnings, higher revenue and improved profitability resulted in operating profit of ¥613 million, up 50.0% year on year, ordinary profit of ¥600 million, up 35.8%, and interim net income attributable to owners of the parent of ¥385 million, up 32.4%.」

「The resolution of supply delays increased project opportunities in the private-sector, public-sector and healthcare fields, and information and communications equipment, including PCs, and system engineering services posted higher revenue, resulting in revenue of ¥25,178 million, up 5.9% year on year. In terms of earnings, the lower cost ratio resulting from higher revenue and improved profitability in system engineering services was supplemented by a ¥347 million decrease in retirement benefit expenses due to improved pension asset investment performance. Operating profit was ¥1,608 million, up 61.1% year on year, ordinary profit was ¥1,655 million, up 61.0%, and net income attributable to owners of the parent was ¥1,045 million, up 49.5%.」

「Revenue for the third quarter of the consolidated cumulative period was ¥17,546 million, up 15.3% year on year, as information and communications equipment, including servers and PCs, and system engineering services posted higher revenue. In terms of earnings, operating profit was ¥705 million, up 526.3% year on year, and ordinary profit was ¥726 million, up 439.7%, as revenue increased and the cost ratio improved due to better profitability in system engineering services. Quarterly net income attributable to owners of the parent was ¥478 million, up 279.7%.」

「Revenue for the second quarter of the consolidated cumulative period was ¥11,449 million, up 9.3% year on year, as information and communications equipment, including servers, system engineering services and electronic devices posted higher revenue. In terms of earnings, operating profit was ¥408 million, up 194.4% year on year, and ordinary profit was ¥442 million, up 159.8%, as revenue increased and the cost ratio improved due to better profitability in system engineering services. Quarterly net income attributable to owners of the parent was ¥290 million, up 199.1%.」

「Revenue for the first quarter of the consolidated cumulative period was ¥5,116 million, up 11.4% year on year, as information and communications equipment, including servers and PCs, electronic devices and system engineering services posted higher revenue. In terms of earnings, results improved from the same period of the previous year due to higher revenue and improved profitability in system engineering services, resulting in an operating loss of ¥36 million, compared with an operating loss of ¥129 million, an ordinary loss of ¥10 million, compared with an ordinary loss of ¥104 million, and a quarterly net loss attributable to owners of the parent of ¥12 million, compared with a quarterly net loss attributable to owners of the parent of ¥81 million.」

「Revenue was ¥23,771 million, up 4.7% year on year. In terms of earnings, higher revenue, a lower cost ratio and improved profitability following the recovery in system development projects resulted in operating profit of ¥998 million, up 39.6% year on year, and ordinary profit of ¥1,028 million, up 37.7%. Together with extraordinary income from the sale of investment securities, this resulted in net income attributable to owners of the parent of ¥699 million, up 50.6%.」

「Against this backdrop, revenue for the third quarter of the consolidated cumulative period was ¥15,215 million, up 1.0% year on year. Information and communications equipment, including PCs, system engineering services and electronic devices posted higher revenue, while field services posted lower revenue. In terms of earnings, the increase in system engineering services revenue and improved profitability had a positive effect, but higher selling, general and administrative expenses resulted in operating profit of ¥112 million, down 20.2% year on year, and ordinary profit of ¥134 million, down 11.8%. The addition of extraordinary income from the sale of investment securities resulted in quarterly net income attributable to owners of the parent of ¥126 million, up 54.2%.」

「Although revenue increased slightly, higher costs resulting from a change in the sales mix, together with higher selling, general and administrative expenses, resulted in operating profit of ¥138 million, down 49.2% year on year, ordinary profit of ¥170 million, down 38.9%, and quarterly net income attributable to owners of the parent of ¥97 million, down 45.5%.」

「Against this backdrop, revenue for the first quarter of the consolidated cumulative period was ¥4,592 million, down 3.1% year on year. Although system engineering services posted higher revenue, information and communications equipment, including servers and PCs, electronic devices and field services posted lower revenue. In terms of earnings, the decline in revenue and increase in selling, general and administrative expenses resulted in an operating loss of ¥129 million, compared with an operating loss of ¥85 million in the same period of the previous year, an ordinary loss of ¥104 million, compared with an ordinary loss of ¥80 million, and a quarterly net loss attributable to owners of the parent of ¥81 million, compared with a quarterly net loss attributable to owners of the parent of ¥61 million.」

「Against this backdrop, revenue for the third quarter of the consolidated cumulative period was ¥15,069 million, compared with ¥14,297 million in the same period of the previous year. Although field services posted lower revenue, information and communications equipment, including electronic devices, PCs and software products, and system engineering services posted higher revenue. In terms of earnings, the change in the sales mix raised the cost ratio, resulting in operating profit of ¥141 million, compared with ¥288 million in the same period of the previous year, ordinary profit of ¥152 million, compared with ¥303 million, and quarterly net income attributable to owners of the parent of ¥81 million, compared with ¥188 million.」

「Against this backdrop, revenue for the second quarter of the consolidated cumulative period was ¥10,456 million, compared with ¥9,644 million in the same period of the previous year. Although field services posted lower revenue, information and communications equipment, including electronic devices, servers and software products, and system engineering services posted higher revenue. In terms of earnings, the change in the sales mix raised the cost ratio, resulting in operating profit of ¥273 million, compared with ¥312 million in the same period of the previous year, ordinary profit of ¥278 million, compared with ¥324 million, and quarterly net income attributable to owners of the parent of ¥178 million, compared with ¥211 million.」

「Against this backdrop, revenue for the first quarter of the consolidated cumulative period was ¥4,739 million, compared with ¥4,553 million in the same period of the previous year. System engineering services and field services posted lower revenue, but electronic devices and information and communications equipment, including servers, posted higher revenue. In terms of earnings, the change in the sales mix raised the cost ratio, resulting in an operating loss of ¥85 million, compared with operating profit of ¥102 million in the same period of the previous year, an ordinary loss of ¥80 million, compared with ordinary profit of ¥110 million, and a quarterly net loss attributable to owners of the parent of ¥61 million, compared with quarterly net income of ¥70 million.」

「Against this backdrop, revenue for the third quarter of the consolidated cumulative period was ¥14,297 million, down 14.4% year on year, as order activity weakened because of restrictions on activities during the COVID-19 pandemic, in addition to the reaction to the end of demand in the previous year related to PC upgrades following the end of support for a major operating system and measures to address the consumption tax increase. In terms of earnings, the decline in revenue and stagnation in system engineering projects resulted in operating profit of ¥288 million, down 55.3% year on year, ordinary profit of ¥303 million, down 53.4%, and quarterly net income attributable to owners of the parent of ¥188 million, down 56.8%.」

「Revenue was ¥9,644 million, down 12.7% year on year, as order activity weakened due to restrictions on activities to prevent the spread of COVID-19, in addition to the reaction to the end of demand in the previous year related to PC upgrades following the end of support for a major operating system and measures to address the consumption tax increase. In terms of earnings, the decline in revenue resulted in operating profit of ¥312 million, down 39.1% year on year, ordinary profit of ¥324 million, down 37.0%, and quarterly net income attributable to owners of the parent of ¥211 million, down 37.3%.」

「Against this backdrop, revenue for the first quarter of the consolidated cumulative period was ¥4,553 million, up 0.1% year on year. Although electronic devices and network construction-related services posted lower revenue, information and communications equipment, including PCs, posted higher revenue. In terms of earnings, revenue was essentially flat, but efforts to lower the cost ratio and the effects of expense reductions resulted in operating profit of ¥102 million, compared with an operating loss of ¥62 million in the same period of the previous year, ordinary profit of ¥110 million, compared with an ordinary loss of ¥61 million, and quarterly net income attributable to owners of the parent of ¥70 million, compared with a quarterly net loss of ¥55 million.」

「Revenue was ¥24,213 million, up 16.1% year on year. In terms of earnings, higher revenue resulted in operating profit of ¥1,067 million, up 47.2% year on year, ordinary profit of ¥1,079 million, up 44.3%, and net income attributable to owners of the parent of ¥663 million, up 40.4%.」

「Against this backdrop, revenue for the third quarter of the consolidated cumulative period was ¥16,695 million, up 18.2% year on year. Although field services posted lower revenue, information and communications equipment, including servers and PCs, and system engineering services posted higher revenue. In terms of earnings, operating profit was ¥645 million, up 226.6% year on year, and ordinary profit was ¥652 million, up 197.5%, as revenue increased and efforts were made to lower the cost ratio. Quarterly net income attributable to owners of the parent was ¥436 million, up 270.5%.」

「Against this backdrop, revenue for the second quarter of the consolidated cumulative period was ¥11,051 million, up 15.8% year on year. Although field services posted lower revenue, information and communications equipment, including servers and PCs, system engineering services and network construction-related services posted higher revenue. In terms of earnings, operating profit was ¥513 million, up 222.6% year on year, and ordinary profit was ¥515 million, up 193.9%, as revenue increased and efforts were made to lower the cost ratio. Quarterly net income attributable to owners of the parent was ¥337 million, up 240.2%.」

「Against this backdrop, revenue for the first quarter of the consolidated cumulative period was ¥4,548 million, up 17.9% year on year. Although electronic devices posted lower revenue, sales of information and communications equipment, including servers and PCs, and network construction-related services increased. In terms of earnings, efforts to increase revenue and lower the cost ratio resulted in an operating loss of ¥62 million, compared with an operating loss of ¥176 million in the same period of the previous year, an ordinary loss of ¥61 million, compared with an ordinary loss of ¥164 million, and a quarterly net loss attributable to owners of the parent of ¥55 million, compared with a quarterly net loss attributable to owners of the parent of ¥123 million.」

「Revenue was ¥20,862 million, down 0.1% year on year. Although revenue was essentially flat, changes in the sales mix, efforts to lower the cost ratio and improved profitability in system engineering services resulted in operating profit of ¥724 million, up 62.5% year on year, ordinary profit of ¥747 million, up 65.1%, and net income attributable to owners of the parent of ¥472 million, up 16.0%.」

「Revenue was ¥14,126 million, up 2.4% year on year. Sales of electronic devices declined, but information and communications equipment for public-sector and educational customers remained firm, as did system upgrades by general business companies, while system engineering services and field services also posted higher revenue. In terms of earnings, operating profit was ¥197 million, compared with ¥1 million in the same period of the previous year, and ordinary profit was ¥219 million, compared with ¥13 million, due to higher revenue and improved profitability in system engineering services and individual projects.」

「Against this backdrop, revenue for the second quarter of the consolidated cumulative period was ¥9,546 million, up 3.3% year on year. Although demand from some major users declined, information and communications equipment for public-sector and educational customers remained firm, as did system upgrades by general business companies, while system engineering services and field services also posted higher revenue. In terms of earnings, operating profit was ¥159 million, up 168.0% year on year, and ordinary profit was ¥175 million, up 165.7%, as revenue increased and the profitability of system engineering services improved. The previous year included a gain on the sale of investment securities recorded as extraordinary income, but no extraordinary income was recognized in the current second quarter, resulting in quarterly net income attributable to owners of the parent of ¥99 million, down 41.4% year on year.」

「Against this backdrop, revenue for the first quarter of the consolidated cumulative period was ¥3,858 million, down 10.3% year on year. Information and communications equipment, system engineering services and electronic devices had all posted substantial revenue growth in the same period of the previous year, but there were few projects of comparable scale in the current first quarter. In terms of earnings, the decline in revenue resulted in an operating loss of ¥176 million, compared with an operating loss of ¥137 million in the same period of the previous year, and an ordinary loss of ¥164 million, compared with an ordinary loss of ¥131 million. The previous year included extraordinary income from a gain on the sale of investment securities, whereas no extraordinary income was recognized in the current first quarter, resulting in a quarterly net loss attributable to owners of the parent of ¥123 million, compared with quarterly net income of ¥10 million in the same period of the previous year.」

「PCs and information equipment grew substantially as demand for upgrades increased among local governments, educational institutions and private-sector customers, while system engineering services also posted higher revenue. Revenue was ¥20,885 million, up 5.1% year on year. In terms of earnings, operating profit was ¥445 million, up 72.2% year on year, and ordinary profit was ¥452 million, up 74.2%, as revenue increased and utilization of system engineers improved. Together with extraordinary income from the sale of investment securities, this resulted in net income attributable to owners of the parent of ¥407 million, up 187.9% year on year.」

「Against this backdrop, revenue for the third quarter of the consolidated cumulative period was ¥13,790 million, up 1.7% year on year. Sales of electronic devices declined because of lower demand caused by customer production adjustments and product discontinuations, but information and communications equipment remained firm, while orders for system development projects and field-service revenue increased. In terms of earnings, operating profit was ¥1 million, compared with an operating loss of ¥193 million in the same period of the previous year, and ordinary profit was ¥13 million, compared with an ordinary loss of ¥190 million, as utilization of system engineers and field services improved. Including a gain on the sale of investment securities recorded as extraordinary income, quarterly net income attributable to owners of the parent was ¥120 million, compared with a quarterly net loss of ¥158 million in the same period of the previous year.」

「Against this backdrop, revenue for the second quarter of the consolidated cumulative period was ¥9,241 million, up 1.0% year on year. Sales of information and communications equipment and electronic devices declined because public-sector projects in the Kansai region and healthcare projects in the Tohoku region were below the previous year's levels, and demand for semiconductors for overseas automakers decreased. Orders for system development projects, however, remained firm. In terms of earnings, operating profit was ¥59 million, compared with an operating loss of ¥21 million in the same period of the previous year, and ordinary profit was ¥66 million, compared with an ordinary loss of ¥34 million, as utilization of system engineers and field services improved. Following the recognition of a gain on the sale of investment securities as extraordinary income, quarterly net income attributable to owners of the parent was ¥169 million, compared with a quarterly net loss attributable to owners of the parent of ¥38 million in the same period of the previous year.」

「Against this backdrop, revenue for the first quarter of the consolidated cumulative period was ¥4,300 million, up 14.8% year on year, as sales of information and communications equipment and electronic devices increased on higher demand for system upgrades and from industrial equipment manufacturers, while orders for system development projects also increased. In terms of earnings, the operating loss narrowed by ¥119 million year on year to ¥137 million, compared with an operating loss of ¥256 million in the same period of the previous year, as revenue increased and utilization of system engineers and field services improved. The ordinary loss narrowed by ¥135 million to ¥131 million, compared with an ordinary loss of ¥267 million in the same period of the previous year. Due to a gain on the sale of investment securities, recorded as extraordinary income, quarterly net income attributable to owners of the parent was ¥10 million, compared with a quarterly net loss attributable to owners of the parent of ¥194 million in the same period of the previous year.」

「Demand increased for embedded industrial equipment and PCs for local governments and educational institutions, while maintenance services and system solutions also posted higher revenue. However, components for industrial equipment and medical package software declined significantly, resulting in revenue of ¥19,879 million, down 1.6% year on year. In terms of earnings, the previous fiscal year saw an operating loss because actuarial differences on retirement benefit obligations amounted to ¥248 million, primarily because the discount rate used in retirement benefit accounting fell substantially as government bond yields declined, and this impact could not be fully offset. In the current consolidated fiscal year, there was no such impact, and operating profit was ¥258 million, compared with an operating loss of ¥140 million in the previous year. Ordinary profit was ¥260 million, compared with an ordinary loss of ¥126 million, and net income attributable to owners of the parent was ¥141 million, compared with a net loss attributable to owners of the parent of ¥198 million.」

「Consolidated net sales for the cumulative third-quarter period of the company's group declined in information and communications equipment and electronic devices due to the completion of equipment-upgrade demand among small-lot users, fewer and postponed business opportunities related to energy-saving equipment and healthcare, and other factors, to ¥13,559 million, down 4.5% year on year. In terms of profit and loss, efforts to reduce expenses to offset the decline in sales resulted in operating loss decreasing by ¥30 million year on year to ¥193 million, compared with an operating loss of ¥224 million in the same period of the previous year. Ordinary loss decreased by ¥6 million year on year to ¥190 million, compared with an ordinary loss of ¥196 million in the same period of the previous year, while net loss attributable to owners of the parent was ¥158 million, compared with a net loss attributable to owners of the parent of ¥179 million in the same period of the previous year.」

「Consolidated net sales for the cumulative second-quarter period of the company's group declined in information and communications equipment, electronic devices and field services due to weak ICT investment demand and the continuation of inventory adjustments at industrial equipment manufacturers, among other factors, to ¥9,154 million, down 6.6% year on year.」

「Net sales for the cumulative first-quarter period declined in information and communications equipment, electronic devices and field services due to sluggish ICT investment demand and inventory adjustments at industrial equipment manufacturers, among other factors, to ¥3,744 million, down 14.6% year on year.」