Revenue growth and a narrower loss continue, but confirmation of third-quarter progress is needed before the company can turn profitable for the full year

Revenue in FY2026 H1 was ¥3,026 million, up ¥292 million from ¥2,734 million in the same period of the previous year. The operating loss narrowed from ¥145 million to ¥15 million, the ordinary loss from ¥172 million to ¥48 million, and the interim net loss attributable to owners of the parent from ¥194 million to ¥53 million. The operating margin also improved from approximately negative 5.3% in the same period of the previous year to approximately negative 0.5% in the current interim period, although the company has not yet reached operating profitability.

The company’s full-year forecasts are revenue of ¥6,500 million, operating profit of ¥110 million, ordinary profit of ¥100 million and net profit attributable to owners of the parent of ¥100 million. H1 revenue progress was 46.6%, approximately 3.4 percentage points below the simple time-based progress rate of 50%. To achieve the full-year revenue forecast, cumulative revenue through Q3 must reach at least ¥4,875 million, implying an indicative additional ¥1,849 million in revenue from H1 through Q3.

On the earnings side, achieving full-year operating profit of ¥110 million against the H1 operating loss of ¥15 million requires approximately ¥126 million in operating profit in H2 on a simple difference basis. Although seasonal factors and product mix mean that results cannot be allocated evenly across quarters, it will be important to see whether the loss narrows on a cumulative basis through Q3 and whether the company is relying excessively on profit improvement in Q4 alone. The operating loss in Q1 also narrowed from ¥107 million to ¥20 million, confirming the direction of improvement.

The company attributed the increase in revenue to electronic equipment for semiconductor manufacturing equipment, sensor-related products and a recovery in orders as customer inventory adjustments improved, but it has not disclosed the amount or volume attributable to each factor. In Q3, the key points will be not only whether revenue approaches ¥4,875 million, but also how much price pass-through and productivity improvements contributed to reducing the operating loss and whether the full-year forecasts of ¥6,500 million in revenue and ¥110 million in operating profit are revised.