1Q revenue was up, but further acceleration is needed to reach half of the full-year revenue plan by H1

Revenue for 1Q of the fiscal year ending March 2027 was ¥4,052 million, up 7.8% year on year. The full-year revenue forecast for the fiscal year ending March 2027 is ¥21,000 million, putting 1Q progress at 19.3% (¥4,052 million ÷ ¥21,000 million). This was 5.7 percentage points below the simple 25% progress benchmark that ignores quarterly seasonality. While revenue growth has been confirmed, the pace of progress against the plan cannot yet be considered sufficient.

To record ¥10,500 million in H1 revenue, equivalent to 50.0% of the full-year forecast, cumulative 2Q revenue must reach ¥10,500 million. After deducting 1Q actual revenue, this means adding ¥6,448 million in 2Q alone. As of the end of 1Q, ¥16,948 million of revenue remained in the full-year plan, equivalent to 80.7% of the full-year forecast. The timing of project revenue recognition from 2Q onward will therefore be a key variable in achieving the full-year target.

The company cited increased sales of IP radio equipment and higher orders at its subsidiary 西菱電機エンジニアリング as factors behind 1Q revenue growth, despite a decline in large projects for government agencies. However, no quantitative or monetary support was provided, such as order intake, order backlog, units of IP radio equipment sold, or the value of orders received by the subsidiary. In 2Q, it will be necessary to determine whether the revenue growth reflects one-off project recognition or orders based on a backlog that will continue into the second half.

At the next earnings announcement, the focus will be on whether H1 revenue reaches ¥10,500 million and whether the full-year forecast of ¥21,000 million is maintained or revised due to projects being pushed into a different period. Because ¥10,500 million is merely a mechanical benchmark that ignores seasonality, failure to reach it should not immediately be interpreted as a full-year shortfall. It will also be necessary to check whether the company discloses the 2Q order backlog, revenue by segment, and its outlook for recognizing second-half projects.