Revenue recovery began in Q1, but a sharp acceleration in the second half is needed to meet the full-year forecast

FY2026 ended on a difficult note, with revenue of ¥516.552 million, an operating loss of ¥1,360.496 million, an ordinary loss of ¥1,341.129 million and a net loss attributable to owners of the parent of ¥2,415.745 million. In contrast, FY2027-Q1 revenue was ¥245.984 million, the operating loss was ¥227.473 million, the ordinary loss was ¥237.337 million and the quarterly net loss attributable to owners of the parent was ¥238.610 million. Revenue rose 666.2% year on year, while each loss narrowed from the year-earlier period. The recovery began as shipments progressed against seed crystal orders secured in the fourth quarter of FY2026.

However, revenue of ¥245.984 million represents only 22.4% of the ¥1,100 million full-year forecast. Meeting the full-year forecast requires adding ¥854.016 million in revenue from Q2 through Q4, meaning that revenue approximately 3.5 times Q1's level must be generated over the remaining 3 quarters. The simple benchmark for half-year progress is ¥550 million. If FY2027-H1 falls below this level, shipments will need to be concentrated even more heavily in the second half.

On the earnings side, the operating loss was already ¥227.473 million in Q1, compared with a full-year operating loss forecast of ¥283 million. On a simple calculation, the full-year forecast will be difficult to achieve unless the combined operating loss from Q2 onward is kept within ¥55.527 million or an operating profit is generated in the latter part of the year. In FY2026, cash flow from operating activities was also negative ¥968 million, so an improvement in the earnings structure, including fixed costs, outsourcing costs and research and development expenses, will be needed rather than a simple recovery in revenue.

At the next results announcement, Q2 standalone and H1 cumulative revenue and operating results should be reviewed separately. In particular, it will be important to determine whether Q1 seed crystal revenue of ¥206 million represented shipments against a temporary backlog or whether shipments continued at a similar level in Q2. Whether the full-year outlook, including the ¥1,100 million revenue forecast and ¥283 million operating loss forecast, is maintained or revised again will also help assess the credibility of the recovery scenario.