The key issue for Q1 of the nine-month transition fiscal year is the lack of visibility into the quarterly plan

The FY2026 annual disclosure states that, subject to approval of amendments to the Articles of Incorporation, the fiscal year-end will be changed from 30 June to 31 March, with the transition to a March year-end beginning in FY2026. FY2027 will therefore cover the nine months from July 2026 through March 2027, making a straightforward year-on-year comparison with the previous 12-month fiscal year impossible. At the next Q1 results announcement, it will be necessary to confirm clearly that the reporting period is July to September 2026 and to establish the basis for the year-on-year comparison.

The nine-month earnings guidance is revenue of ¥1,962 million, gross profit of ¥1,221 million, operating profit of ¥74 million, ordinary profit of ¥106 million and net profit of ¥60 million. FY2026 actual results were revenue of ¥1,955.936 million, operating profit of ¥72.876 million, ordinary profit of ¥84.381 million and net profit of ¥58.686 million. Despite covering a period three months shorter, the revenue and operating profit targets are set close to the prior full-year levels, making both the timing of project recognition and margins important to achieving the plan.

The latest FY2026-Q1 results were revenue of ¥232 million, an operating loss of ¥172 million, an ordinary loss of ¥168 million and a net loss of ¥120 million. For the nine months through FY2026-Q3, revenue was ¥1,040 million and the operating loss was ¥239 million. On a simple residual basis, this implies revenue of approximately ¥915 million and operating profit of approximately ¥313 million in FY2026-Q4. Given the business structure, in which high-value optical projects are concentrated in the second half, the nine-month plan should not be judged solely on the Q1 loss. Progress in orders, production and delivery also needs to be monitored.

At the next results announcement, it will be important to see whether the company discloses not only the nine-month total guidance but also a standalone Q1 revenue and operating profit/loss plan or the required pace of progress. In particular, if Q1 revenue falls below the prior-year ¥232 million, the revenue that must be recognized in subsequent quarters will become substantially larger. Conversely, if revenue exceeds ¥232 million and the operating loss narrows from ¥172 million, that would support an improvement in the early stage of the transition year.