COMPUTER ENGINEERING & CONSULTING LTD. reported double-digit increases in revenue, operating profit and interim net income for the second quarter of the fiscal year ending January 2027, all reaching record highs. Although orders excluding Tourism Agency projects fell below the year-earlier level, they grew 20.5% on an existing-business basis, prompting the company to raise its full-year forecast.
At its earnings presentation for the second quarter of the fiscal year ending January 2027, COMPUTER ENGINEERING & CONSULTING LTD. (9692.T) reported revenue of ¥35.08 billion, operating profit of ¥4.16 billion and interim net income of ¥2.883 billion. The figures represented year-on-year increases of 13.7%, 20.5% and 20.9%, respectively, with all three reaching record highs. Selling, general and administrative expenses, including growth investments, increased by ¥521 million from the previous year, but higher revenue resulted in a ¥78 million year-on-year increase in operating profit.
Orders received fell 9.0% year on year to ¥38.989 billion. Excluding the decline following the completion of a large project for the Tourism Agency, however, existing-business growth was highlighted as 20.5%, with Representative Himeno emphasizing the solid performance of the existing business. By segment, Integration reported revenue of ¥23.746 billion and profit of ¥4.976 billion, Connected reported revenue of ¥5.946 billion and profit of ¥1.228 billion, and Solutions reported revenue of ¥5.386 billion and profit of ¥1.321 billion. All segments secured higher profits. The company explained that a large deal for its proprietary Smart Sesame product contributed to the improvement in Solutions' profit margin.
The full-year forecast has already been revised upward, with revenue of ¥70.5 billion, operating profit of ¥8.32 billion and net income of ¥5.9 billion, all above the initial forecasts. First-half progress toward the full-year forecasts for Integration, Connected and Solutions was generally around 50%, indicating steady progress. Under its AI strategy, the company emphasized its competitive advantage as a vertically integrated systems integrator covering all layers, and outlined a policy of creating value by leveraging operational expertise and domain knowledge from the field.
The company plans to make ¥6 billion in growth investments for the full year and had executed ¥2.5 billion in the first half. The investments include human resources, research and development, and capital expenditures, but the company said the reorganization of its data centers was running somewhat behind schedule in the second half because of shortages of materials and delivery delays. As part of its shareholder returns, the company plans to increase its interim dividend and acquire treasury shares, indicating its intention to strengthen shareholder returns while maintaining financial soundness.