Q1 profit performance is ahead of schedule against the full-year loss plan

FY2027-Q1 revenue was ¥290 million, representing 22.3% progress against the full-year forecast of ¥1,300 million. Although this was below the simple half-year equivalent of 50%, it was close to one-quarter of the full-year plan for a first quarter. Operating loss, meanwhile, was ¥90 million, or 56.3% of the full-year operating loss forecast of ¥160 million, meaning that loss consumption was ahead of revenue progress.

Ordinary loss was also ¥90 million, while the quarterly net loss attributable to owners of the parent was ¥119 million. Progress against the full-year net loss forecast of ¥230 million was 51.7%, exceeding half of the annual loss at the Q1 stage. Revenue was ¥746 million and operating loss was ¥11 million in the same quarter of the previous year, so this period saw a substantial decline in revenue, including the effect of changes in the scope of consolidation, as well as a wider operating loss.

By segment, losses were ¥9.666 million in the Special Precision Equipment business, ¥33.238 million in the D-Next business and ¥47.492 million in the Material Science business. Accordingly, at the next results announcement, it will be necessary to check not only total company revenue but also whether the combined losses of the 3 segments have narrowed from approximately ¥90 million in Q1, and whether at least 1 business has exceeded break-even.

If FY2027-H1 revenue falls below ¥650 million, the simple half-year equivalent of the full-year forecast, reliance on the second half to achieve the full-year target will increase further. For operating loss, a half-year loss exceeding ¥80 million would also be above the simple annual plan pace. It will therefore be important to determine whether the effects of reductions in fixed costs, manufacturing costs and company-wide expenses are appearing in the figures, in addition to a recovery in sales.