Required in Q4: approximately ¥366 million in revenue and approximately ¥28 million in operating profit

Nine-month revenue was ¥1,130 million, down 7.9% from ¥1,227 million in the same period of the previous year. The full-year forecast presented in August was ¥1,496 million in revenue and ¥10 million in operating profit, putting revenue progress at approximately 75.5%. Since 75% of the fiscal year had elapsed at the end of Q3, revenue alone was broadly on track, although revenue continued to decline year on year.

Viewed simply as the cumulative difference from the full-year forecast, required Q4 revenue is approximately ¥366 million. Subtracting nine-month revenue of ¥1,130 million from first-half revenue of ¥794 million gives standalone Q3 revenue of approximately ¥335 million, meaning Q4 must exceed this by approximately ¥30 million, or approximately 9%. The company has explained that new customer acquisition fell below plan and that some integrated solution projects were lost or shifted into a different reporting period. It will therefore be necessary to determine whether this revenue gap will come from project recognition or ordinary customer acquisition.

On the earnings side, nine-month operating income was a loss of approximately ¥18 million, while ordinary income was a loss of ¥25 million. Since first-half operating profit was approximately ¥21 million, standalone Q3 operating loss was approximately ¥39 million. To achieve full-year operating profit of ¥10 million, the company must first offset the cumulative loss in standalone Q4 and then generate approximately ¥28 million in operating profit. Although fixed-cost reductions are expected, it is important to determine whether hiring-related costs and lost integrated solution projects were temporary.

The full-year forecast was also revised downward from the second-quarter forecast of ¥1,603 million in revenue and ¥47 million in operating profit to ¥1,496 million in revenue and ¥10 million in operating profit. There is a single reportable segment, and revenue and profit for the nine-month period are not disclosed by service. At the next earnings release, it will be necessary to confirm: ① achievement of approximately ¥366 million in Q4 revenue, ② generation of approximately ¥28 million in operating profit, ③ the actual amount recognized from lost or period-shifted projects, and ④ the full-year breakdown between the restaurant support service and integrated solutions.