FY2027 full-year plan severely back-loaded as of Q1

In Q1 of the fiscal year ending March 2027, consolidated revenue was ¥58 million, the operating loss was ¥496 million, the ordinary loss was ¥494 million, and the quarterly net loss attributable to owners of the parent was ¥447 million. The full-year plan calls for revenue of ¥12,374 million, operating income of ¥2,085 million, ordinary income of ¥2,066 million, and net income attributable to owners of the parent of ¥1,800 million. Revenue progress was only approximately 0.5%, calculated as ¥58 million ÷ ¥12,374 million, about 24.5 percentage points below the 25% implied by a simple even quarterly progression.

If the company's plan is mechanically viewed as assuming that half of the full-year figures are generated in H1, FY2027-H1 would require revenue of ¥6,187 million, operating income of ¥1,043 million, and net income of ¥900 million. Since the company recorded an operating loss of ¥496 million in Q1, standalone Q2 operating income would need to be approximately ¥1,539 million. On a net income basis, standalone Q2 profit of approximately ¥1,347 million would likewise be required. These are verification thresholds calculated from the full-year plan, not the H1 plan presented by the company.

The starting point is also challenging. In FY2025, revenue was ¥701 million and the operating loss was ¥579 million; in FY2026, revenue was ¥1,910 million and the operating loss was ¥989 million. The FY2027 plan assumes revenue will be approximately 6.5 times FY2026 actual revenue and that operating profit will improve by ¥3,074 million, from a ¥989 million loss to profit of ¥2,085 million. Although revenue increased in FY2026, the operating loss widened, so it is necessary to verify both project profitability and the absorption of selling, general and administrative expenses, rather than simply an expansion in revenue scale.

According to the latest explanation, the previous fiscal year's sale of a large server rack system was pushed into a different period because of an increase in matters requiring confirmation concerning delivery to Japan, and recognition of major projects was also concentrated in the second half in Q1 of the fiscal year ending March 2027. Accordingly, in FY2027-H1 it will be necessary to distinguish how far projects have progressed through contracting, delivery, acceptance and revenue recognition, and whether the shortfall against plan reflects merely a shift between periods or a substantive delay involving changes to orders or delivery terms. Revenue, operating income or loss, project-by-project recognition timing, and whether the full-year forecast is revised should be reviewed together.