Q1 is tracking slightly below the FY2027 full-year plan, making the first-half buildup the key focus

In Q1 of the fiscal year ending March 2027, revenue was ¥13.290 billion, down 13.8% year on year, while operating profit was ¥1.880 billion, down 23.4%. The company expects full-year revenue of ¥56.0 billion, operating profit of ¥8.5 billion and net income attributable to owners of the parent of ¥6.3 billion. Accordingly, progress toward the full-year forecasts was 23.7% for revenue and 22.1% for operating profit, 1.3 percentage points and 2.9 percentage points below the 25% benchmark based on one-quarter completion.

On a simple evenly distributed basis, the Q1 benchmarks would be revenue of ¥14.0 billion and operating profit of ¥2.125 billion, making the shortfalls ¥710 million and ¥245 million, respectively. However, seasonality arising from the product mix and customers' production plans has not been disclosed, so caution is needed before treating the Q1 shortfall as a direct indication of a full-year shortfall. Results for the fiscal year ended March 2026 were revenue of ¥52.223 billion and operating profit of ¥7.125 billion, so the current full-year forecasts assume year-on-year growth of 7.2% in revenue and 19.3% in operating profit.

To achieve 50% progress toward the full-year forecasts at the next first-half results announcement, cumulative first-half revenue must reach ¥28.0 billion and operating profit ¥4.25 billion. After deducting Q1 results, the corresponding standalone Q2 benchmarks are revenue of ¥14.710 billion and operating profit of ¥2.370 billion. This does not mean the company disclosed standalone Q2 forecasts; these are verification benchmarks obtained by mechanically allocating the full-year plan across the two halves.

At the time of the fiscal year ended March 2026 results, the forecasts for the fiscal year ending March 2027 were revenue of ¥50.5 billion and operating profit of ¥5.8 billion, but these were raised to ¥56.0 billion and ¥8.5 billion in the Q1 results. At the first-half results announcement, it will be important to determine whether the increased plan is supported by continued growth in communications-related and automotive-related revenue and profit, rather than merely reflecting the reversal of the impact of the business withdrawal.