Fiscal Year Ending May 2027 Q1 Earnings Presentation

Performance Overview

Revenue for the first quarter was 816 million yen, down 22.1% year-over-year, and operating loss was 142 million yen. IoT-related revenue declined due to the preparatory period for a large contract. The Industry 4.0 promotion business recorded revenue growth but posted a segment loss due to increased research and development expenses. From the second quarter onward, recognition of large contract revenue is expected to progress, and the full-year forecast remains unchanged as of the publication date. Order backlog at the end of Q1 was 3,061 million yen (up 416 million yen from the beginning of the period), and an additional 747 million yen from a large order is expected to be recorded in September.

Outlook and Impact for Investors

Progress in the IoT-related business is expected to accelerate from Q2 onward. By expanding partnerships and advancing new businesses, the company aims to improve PSR through building base revenue. The medium-term plan targets base revenue of at least 3,000 million yen in the fiscal year ending May 2030, with a focus on improving profitability and stability.