Members has indicated that its top priority is shifting to an AX business as the foundation for growth in the AI era, and lowered its full-year earnings forecast at the briefing on its financial results for the second quarter of the fiscal year ending March 2027. The company disclosed specific progress on strengthening AX and its initiatives going forward.
At the briefing on its financial results for the second quarter of the fiscal year ending March 2027, first-half revenue was ¥11.788 billion and value-added sales were ¥11.392 billion, representing approximately 3% year-on-year growth. Operating loss, however, was ¥389 million, resulting in a confirmed loss that exceeded the revised forecast of a ¥430 million loss. The company cited declining demand for standardized processes due to advances in generative AI and delays in the transformation to an AX business, and indicated that it would promptly shift to making AX its most important company-wide initiative.
In the consolidated P/L and productivity metrics, second-quarter revenue was ¥6.037 billion, a slight year-on-year increase, while the utilization rate was 80.6% and sales per employee were ¥975,000. The cumulative first-half gross profit margin declined, while SG&A expenses increased partly due to new graduate recruitment and M&A. Results were reported amid a lack of progress in the AX transformation, and in September the full-year operating profit forecast was lowered to ¥200 million.
As AX-related initiatives, the company set targets of more than 30 AX services, 1,000 AX-related business opportunities, and the training and production of more than 140 AX consultants and engineers in total, as well as training 230 AX professionals. In August, it began providing the AI service suite “Yarikiri AX.” The company will accelerate the AX transformation of its existing businesses and personnel development, with the goal of expanding orders for new AX projects to approximately ¥1 billion.
Regarding the factors behind the downward revision and future initiatives, the company positioned the company-wide transformation to an AX business as its top priority in order to recover from the decline in revenue and utilization caused by the external environment. During the current fiscal year, it plans to strengthen monthly budget-versus-actual management and disclose progress on AX-related orders and utilization as it arises.