A loss-making first quarter is the key test of the ¥187 million full-year operating profit forecast

Revenue for the first quarter of the fiscal year ending March 2027 was ¥611.979 million, down 1.7% year on year. Operating profit turned from a profit of ¥4.567 million in the same period of the previous year to a loss of ¥9.088 million. Ordinary loss was approximately ¥24 million and quarterly net loss was approximately ¥25 million. While the decline in revenue was modest, the deterioration from operating profit downward was larger, and the operating margin fell from approximately 0.7% in the prior-year period to approximately negative 1.5%.

The company's full-year forecasts remain unchanged at revenue of ¥3,027 million, operating profit of ¥187 million, ordinary profit of ¥127 million and net profit of ¥125 million. First-quarter revenue progress was approximately 20.2%, below the 25% elapsed-quarter benchmark. Operating profit was negative against the full-year forecast, so cumulative second-quarter revenue of ¥1,514 million and operating profit of ¥94 million, the simple benchmarks for 50% progress through the first half, will be used as reference points. However, the company itself assessed the first quarter as progressing in line with plan despite being negative. The figures above are analytical benchmarks assuming even progress, not the company's own plan.

By segment, MFD revenue was ¥500.481 million and operating profit was ¥63.826 million; CID revenue was ¥75.471 million and operating loss was ¥61.603 million; and Marketing revenue was ¥81.899 million and operating profit was ¥59.487 million. The structure in which profits from MFD and Marketing offset CID's loss continues. MFD's deterioration in the cost ratio reduced operating profit by ¥12 million, while lower Marketing revenue reduced operating profit by ¥4 million and improved CID cost ratios contributed ¥7 million.

Next time, it will be necessary to confirm whether operating profit turns positive in the second quarter alone, whether the effect of MFD's price revisions can absorb higher costs, whether projects return in Marketing and whether CID's losses continue to narrow. In particular, maintaining the full-year forecast will require recovery in revenue and profit from the second quarter onward, making it important to see whether the contribution of each factor is disclosed again.