The focus is whether FY2027 H1 can recover from the first-quarter loss toward the full-year plan

Revenue for the first quarter of the fiscal year ending March 2027 was ¥1,122 million, up 18.5% from ¥947 million in the same period of the previous year. However, operating loss was ¥40 million, ordinary loss was ¥20 million, and net loss attributable to owners of the parent was ¥15 million, meaning that higher revenue did not translate directly into higher profits. Revenue reached 22.4% of the ¥5,000 million full-year forecast, slightly below the simple quarterly elapsed-period ratio of 25%.

The company left its full-year forecasts unchanged at revenue of ¥5,000 million, operating profit of ¥280 million, ordinary profit of ¥325 million and net profit attributable to owners of the parent of ¥178 million. As operating loss was recorded at the first-quarter stage, operating profit progress cannot be assessed in the usual manner. Revenue of ¥2,500 million in the first half would represent 50% of the full-year plan, while operating profit of approximately ¥140 million would correspond to simple 50% progress, but these are mechanical benchmarks for monitoring purposes, not targets presented by the company.

The company has previously explained that its performance tends to be weighted toward the second half, so it would not be appropriate to conclude that the full-year target will be missed solely because the company does not reach 50% in the first half. In the first half of the previous fiscal year, revenue was ¥2,032 million and operating profit was ¥70 million. In the current first half, the key issue is whether the company can secure profit not only by exceeding the prior-year revenue level, but also by absorbing the higher cost ratio in the systems integration business and upfront costs in the AI-related business.

At the next results announcement, we will check cumulative first-half revenue, operating profit and segment profits, as well as the company’s own assessment of the full-year plan. In particular, the key point is whether the company provides an explanation in monetary terms, rather than only year-on-year comparisons, of the extent to which the buildup of subscription revenue, the effects of price revisions, and growth in the SI and AI-related businesses contributed to profit.