Circlace downwardly revised its consolidated first-half ordinary income forecast from the previously projected profit to a loss of ¥83 million. It said that although revenue increased year on year, higher costs related to AI investment had an impact.
In an earnings revision released after the market close on 22 October, Circlace downwardly revised its consolidated ordinary income for the cumulative first half of the current fiscal year, April-September, from the previously projected profit to a loss of ¥83 million. It left its full-year ordinary profit forecast unchanged at ¥570 million.
Although first-half revenue increased year on year, higher costs associated with increased AI-related investment and higher outsourcing expenses weighed on operating income and income at each stage. The revised figures for the current fiscal year are revenue of ¥2,611 million, an operating loss of ¥101 million, an ordinary loss of ¥83 million, a net loss of ¥55 million and revised earnings per share of -¥12.5.
The full-year forecast is expected to remain at the previous level. While revenue is expected to increase year on year, the outlook assumes a return to losses.
The company also cited differences between the actual results and preliminary figures for the second quarter of the previous fiscal year as part of the background to the revision, explaining that both solid revenue and higher expenses had an impact.