Intensifying Price Competition and Deteriorating Profitability in System Solutions
First written in FY2017-Q1. 15 of 31 entries say "Mitigated", first in FY2019-Q2. Latest entry: 2026-08-07.
The whole theme swung hardest in 2026: 8 of 16 companies on the "Worse" side.
3 other companies' latest entry also says "Mitigated".
- 2026-08-07MitigatedEarnings
「Although net sales declined, improved profitability resulted in operating income of ¥215 million, up 13.1% year on year, ordinary income of ¥214 million, up 14.9%, and quarterly net income attributable to owners of the parent of ¥142 million, up 9.9%.」
Operating income and other profit measures increased through improved profitability despite lower net sales, indicating a reduced risk of deteriorating profitability. - FY2026MitigatedAnnual report
「In terms of earnings, in addition to higher revenue and improved profitability,」
Improved profitability was cited as a factor behind the company-wide increase in operating profit, while the risk of deteriorating profitability in the former system and field services businesses and others was shown to have diminished. - FY2026-H1MitigatedAnnual report
「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 profit attributable to owners of the parent of ¥620 million, up 61.1%.」
Operating profit and other metrics increased significantly on higher revenue and improved profitability, indicating that the risk of deteriorating profitability in the conventional system engineering services and other businesses had diminished. - FY2025WorsenedAnnual report
「In East Japan, operating income was ¥534 million, down 0.9% year on year, due to lower profitability in systems engineering services and higher costs as a percentage of revenue and selling expenses. In West Japan, operating income was ¥373 million, up 1.0% year on year, due to lower profitability in systems engineering services and higher selling expenses.」
Lower profitability in systems engineering services was explicitly reported in both East and West Japan, with profitability risk emerging as a factor affecting earnings in multiple regions. - FY2025-H1MitigatedAnnual report
「On an earnings basis, operating income was ¥613 million, up 50.0% year on year, and ordinary income was ¥600 million, up 35.8% year on year, due to higher revenue and improved profitability」
In addition to higher revenue, improved profitability was cited as a factor behind increases in operating and ordinary income. The risk of deteriorating profitability was shown to have declined compared with the past. - FY2024-Q3RestatedAnnual report
「On an earnings basis, operating income was ¥705 million, up 526.3% year on year, as higher revenue and improved profitability in systems engineering services and other areas improved the cost ratio」
Improved profitability in systems engineering services and a lower cost ratio continued to be cited as factors behind higher operating income. - FY2024-Q2MitigatedAnnual report
「On an earnings basis, operating income was ¥408 million, up 194.4% year on year, as higher revenue and improved profitability in systems engineering services and other areas improved the cost ratio」
Improved profitability in systems engineering services and a lower cost ratio drove higher operating income company-wide. In East Japan, improved profitability in the same service and lower costs as a percentage of revenue and selling expenses resulted in higher operating income despite lower revenue. - FY2024-Q1MitigatedAnnual report
「Improved profitability in systems engineering services, in addition to higher revenue, resulted in an improvement from the same period of the previous year」
Improved profitability in systems engineering services was cited as a factor behind the reduction in operating and ordinary losses, indicating reduced profitability risk compared with the previous deterioration. - FY2023MitigatedAnnual report
「Operating income was ¥998 million, up 39.6% year on year, due to higher revenue, a lower cost ratio and improved profitability resulting from the recovery in system-development opportunities.」
Lower costs as a percentage of revenue and improved profitability resulting from the recovery in system-development opportunities were cited as factors behind higher operating income, indicating reduced deterioration in profitability compared with the past. - FY2023-Q3MitigatedAnnual report
「In West Japan, revenue was ¥2,802 million, up 0.5% year on year, as higher revenue from systems engineering services and electronic devices outweighed lower revenue from information and communications equipment. On an earnings basis, operating income was ¥70 million, up 15.2% year on year, due to a lower cost ratio.」
In West Japan, operating income rose 15.2% year on year due to a lower cost ratio, indicating improvement from the previously reported deterioration in profitability. - FY2023-Q2RestatedAnnual report
「On an earnings basis, operating income was ¥115 million, down 9.1% year on year, as the systems and field-services divisions experienced deteriorating profitability despite higher revenue.」
In East Japan, revenue increased, but deteriorating profitability in the systems and field-services divisions continued, and operating income declined 9.1% year on year. - FY2022-Q3RestatedAnnual report
「On an earnings basis, the cost ratio rose due to changes in the revenue mix」
The increase in the cost ratio resulting from changes in the revenue mix continued to be cited as a factor behind lower operating income and other figures. - FY2022-Q2RestatedAnnual report
「The cost ratio rose due to changes in the revenue mix」
The increase in the cost ratio resulting from changes in the revenue mix continued to be cited as a factor behind operating income and other figures falling below the same period of the previous year. - FY2022-Q1WorsenedAnnual report
「In the Tokyo metropolitan area, revenue was ¥2,930 million, compared with ¥2,586 million in the same period of the previous year, as higher revenue from electronic devices and information and communications equipment, including servers, outweighed lower revenue from systems engineering and field services. On an earnings basis, the company recorded an operating loss of ¥18 million, compared with operating income of ¥25 million in the same period of the previous year, as the cost ratio rose due to changes in the revenue mix and field-service utilization declined. In East Japan, revenue was ¥929 million, compared with ¥944 million in the same period of the previous year, as higher revenue from information and communications equipment, including software products, was offset by fewer large-scale system-upgrade opportunities and lower field-services revenue. On an earnings basis, the company recorded an operating loss of ¥31 million, compared with operating income of ¥22 million in the same period of the previous year, due to lower revenue and deteriorating profitability in the systems and field-services divisions.」
In the Tokyo metropolitan area, higher costs as a percentage of revenue and lower field-service utilization were cited, while in East Japan, deteriorating profitability in the systems and field-services divisions was cited, with both factors materializing as operating losses. - FY2021-Q3WorsenedAnnual report
「In East Japan, revenue was ¥3,246 million, down 18.9% year on year, as information and communications equipment, systems engineering services and field services generated lower revenue. On an earnings basis, operating income was ¥108 million, down 53.3% year on year, due to lower revenue and deteriorating profitability in the systems division.」
In East Japan, deteriorating profitability in the systems division continued to be a factor behind lower operating income, which declined 53.3% year on year. The impact of deteriorating profitability increased in numerical terms. - FY2021-Q2WorsenedAnnual report
「In East Japan, revenue was ¥2,299 million, down 14.0% year on year, as information and communications equipment, systems engineering services and field services generated lower revenue. On an earnings basis, operating income was ¥118 million, down 44.8% year on year, due to lower revenue and deteriorating profitability in the systems division.」
In East Japan, deteriorating profitability in the systems division was explicitly cited as a factor behind lower operating income in addition to the decline in revenue. The impact of deteriorating profitability materialized in the results. - FY2021-Q1MitigatedAnnual report
「On an earnings basis, operating income was ¥48 million, compared with an operating loss of ¥12 million in the same period of the previous year, due to higher revenue and a lower cost ratio.」
In West Japan, higher revenue and a lower cost ratio resulted in a shift from an operating loss to operating income. The deterioration in profitability in systems engineering, field services and other areas previously reported was shown to have improved in the current quarter. - FY2020WorsenedAnnual report
「Although revenue increased, gross profit was ¥4,428 million, up 13.0% year on year, due to unprofitable system-development projects and lower revenue in the field-services business. The gross profit margin declined 0.5 percentage points from the previous consolidated fiscal year to 18.3%.」
In addition to the previous profitability issues in system solutions and other areas, unprofitable system-development projects materialized as a factor behind the decline in the gross profit margin. - FY2020-Q3MitigatedAnnual report
「On an earnings basis, operating income was ¥267 million, up 93.6% year on year, due to higher revenue and lower costs.」
In West Japan, operating income rose 93.6% year on year due to higher revenue and lower costs, with improvement continuing in response to the deterioration in profitability reported through the prior fiscal year. - FY2020-Q2MitigatedAnnual report
「On an earnings basis, operating income was ¥167 million, up 64.4% year on year, due to higher revenue and lower costs.」
In West Japan, operating income rose 64.4% year on year due to higher revenue and lower costs, indicating reduced deterioration in profitability previously reported through the prior fiscal year. - FY2020-Q1WorsenedAnnual report
「In West Japan, revenue was ¥875 million, up 2.2% year on year, as the increase in information and communications equipment installations for the education sector outweighed the decline in field services. On an earnings basis, the operating loss was ¥12 million, compared with operating income of ¥11 million in the same period of the previous year, due to deteriorating profitability in systems engineering and field services.」
In West Japan, deteriorating profitability in systems engineering and field services resulted in a shift from operating income in the same period of the previous year to an operating loss. - FY2019MitigatedAnnual report
「Operating income was ¥724 million, up 62.5% year on year, due to changes in the revenue mix, efforts to reduce the cost ratio and improved profitability in systems engineering services.」
The improved profitability in systems engineering services and other areas cited through the previous quarter was also confirmed for the full year and, together with efforts to reduce the cost ratio, contributed to higher operating income. - FY2019-Q3RestatedAnnual report
「Operating income was ¥202 million, up 58.4% year on year, due to improved profitability in information-equipment opportunities, systems engineering services and field services.」
In East Japan, improved profitability in information-equipment opportunities, systems engineering services and field services continued, while in West Japan, improved profitability in systems engineering services was cited as a factor behind higher operating income. - FY2019-Q2MitigatedAnnual report
「On an earnings basis, operating income was ¥102 million, up 17.1% year on year, due to higher revenue and improved profitability in systems engineering services.」
Improved profitability in systems engineering services was cited as a factor behind higher operating income. East Japan also reported improved cost ratios for information-equipment opportunities, indicating reduced profitability risk compared with the previous deterioration. - FY2019-Q1WorsenedAnnual report
「On an earnings basis, the operating loss was ¥12 million, compared with operating income of ¥22 million in the same period of the previous year, due to lower revenue and deteriorating profitability in systems engineering and field services.」
In addition to the previous deterioration in profitability in system solutions, deteriorating profitability in systems engineering and field services was cited as a factor behind the shift from operating income to an operating loss in East Japan. The scope of profitability risk is expanding. - FY2017ReframedAnnual report
「Revenue declined substantially as the healthcare business was significantly affected by intensifying competition in medical-system opportunities, including electronic medical records.」
The manifestation of competitive risk is shifting from the previous price competition and deteriorating profitability in system solutions in West Japan to lower revenue for the full year due to intensifying competition in healthcare and medical-system opportunities. - FY2017-Q3WorsenedAnnual report
「In West Japan, revenue was ¥2,595 million, down 8.6% year on year, as revenue from information and communications equipment fell sharply due to weak ICT demand, intensifying competition and delays in large-scale opportunities, despite a recovery in field services. System development also declined. On an earnings basis, the company recorded an operating loss of ¥11 million, compared with operating income of ¥51 million in the same period of the previous year, due to lower revenue and deteriorating profitability in system solutions, among other factors.」
In West Japan, weak ICT demand, intensifying competition and delays in large-scale opportunities were explicitly cited, and revenue from information and communications equipment declined sharply. Profitability in system solutions also continued to deteriorate, resulting in a shift from operating income in the same period of the previous year to an operating loss. - FY2017-Q2RestatedAnnual report
「On an earnings basis, operating income was ¥28 million, down 63.8% year on year, due to lower revenue and deteriorating profitability in system solutions, among other factors.」
Deteriorating profitability in system solutions continued to be cited, and operating income in West Japan declined 63.8% year on year. Price competition was not explicitly mentioned in the current quarter's disclosure. - FY2017-Q1First statedAnnual report
「The company recorded an operating loss of ¥58 million, compared with operating income of ¥31 million in the same period of the previous year, due to lower revenue, intensifying price competition and deteriorating profitability in system solutions, among other factors.」
In West Japan, price competition and deteriorating profitability materialized as an operating loss.