The focus for FY2027-H1 is whether sustained improvement in Electronic Equipment can offset the decline in Production Equipment

Consolidated revenue in Q1 was ¥10.841 billion, up 4.1% year on year, while the operating loss narrowed from ¥604 million in the year-earlier period to ¥335 million. Ordinary income also turned around, from a loss of ¥950 million to income of ¥168 million, confirming improvement at the operating level. However, the company reported a net loss of ¥1.447 billion due to a loss related to the core system contract, so the improvement in operating performance was not reflected directly in the bottom line.

By segment, Electronic Equipment revenue rose 19.5% year on year to ¥4.234 billion, while its operating loss narrowed from ¥412 million to ¥147 million. Production Equipment revenue, meanwhile, fell 3.8% to ¥6.614 billion, and its operating loss improved only slightly, from ¥191 million to ¥187 million. Accordingly, consolidated revenue growth depended on Electronic Equipment, while a recovery in demand for Production Equipment has yet to appear in the figures.

Consolidated revenue in the comparable FY2026-H1 period was ¥20.953 billion. Whether FY2027-H1 can exceed this level will be the first important checkpoint for assessing the likelihood of achieving the full-year revenue forecast of ¥45.0 billion. In Electronic Equipment, the impact of several factors is intertwined, including the long-running change in the OLED business model, the end of in-house touch-sensor production, and demand by application for EMS and industrial and hobby radio-control equipment. The company therefore needs to disclose which products drove growth, rather than simply reporting higher revenue.

For Production Equipment, the key ongoing issues are the delayed recovery in Japan’s automotive-related market, weak demand and price competition in South Korea, and planned revenue declines resulting from the reorganization of production sites in China. In the H1 results, we will assess by segment how much growth in molding and production-rationalization equipment and machine-tool IoT monitoring systems offset weak sales of mold equipment and plate products, and whether price revisions more than offset lower volumes and an adverse product mix.