Q1 broadly in line with the full-year forecast, with H1 to confirm the sustainability of the recovery

FY2027-Q1 revenue was ¥20,031 million, up 15.5% from ¥17,338 million in the year-earlier quarter. Operating profit turned around from a ¥97 million loss in the year-earlier quarter to a profit of ¥807 million, while ordinary profit was ¥1,574 million and quarterly net income attributable to owners of the parent was ¥1,215 million. In addition to higher revenue, the company cited the weaker yen against the euro, the restructuring and rationalization of its European organization, and the absence of one-time expenses related to the new technology building incurred in the year-earlier quarter as factors behind the improvement in profit.

The company's FY2027 full-year forecasts are revenue of ¥85,000 million, operating profit of ¥3,300 million, ordinary profit of ¥4,600 million, and net income attributable to owners of the parent of ¥6,500 million. Progress in Q1 was approximately 23.6% for revenue and 24.5% for operating profit, not significantly off a simple 25% benchmark. However, demand for imaging equipment tends to be weighted toward the second half in a typical year, so it would not be appropriate to conclude that the plan is falling short simply because cumulative Q2 results do not reach the ¥42,500 million revenue or ¥1,650 million operating profit implied by a simple 50:50 split. Conversely, the key issue is whether the company can maintain revenue growth and operating profitability in H1 despite the second-half weighting.

In FY2026, revenue was ¥81,308 million and operating profit was ¥2,365 million. Revenue increased 1.0% year on year, while operating profit fell 36.2%, leaving the operating margin at approximately 2.9%. The FY2027 full-year forecast calls for operating profit of ¥3,300 million and an operating margin of approximately 3.9%, implying a recovery of about 1.0 percentage point in margin. The Q1 operating margin has improved to approximately 4.0%, but this includes the low base in the year-earlier quarter and the contribution from foreign exchange. It will therefore be necessary to confirm whether a similar margin can be maintained through the interim period.

The company did not prepare a statement of cash flows for Q1, and cash flow from operating activities was not disclosed. It is therefore not yet possible to determine whether the accounting return to profitability was accompanied by increases in inventories and trade receivables or by cash generation. In FY2027-H1, we will monitor interim cash flow and changes in inventories and trade receivables to determine whether the benefits of higher revenue and fixed-cost reductions are translating into actual cash generation.