Notice of Revision to Consolidated Earnings Guidance for the Second Quarter (Interim) and Full Fiscal Year Ending March 2027

Summary of Revision to Earnings Guidance

Genetec Corporation has revised downward its expected results for the second quarter of the fiscal year ending March 2027 and its full-year earnings guidance. Second-quarter net sales are expected to be 5,184 million yen, operating income 47 million yen, ordinary income 37 million yen, net income attributable to owners of parent (interim) -22 million yen, and net income per share (interim) -1.95 yen. For the full year, the company forecasts net sales of 12,330 million yen, operating income of 700 million yen, ordinary income of 649 million yen, net income of 337 million yen attributable to owners of parent, and net income per share of 29.43 yen. The main reasons are delayed recovery of PLM-related projects in the Engineering Solutions business, changes in distribution channels, and cost pressures including increased personnel expenses and higher depreciation.

Outlook and Measures

In the second half, the company expects a positive contribution from the new consolidation of Clas Technology while focusing on overcoming the delayed recovery of PLM-related projects and the impact of the distribution channel change for FlexSim. Although net sales are expected to receive positive contributions from the second half, upside potential for operating income is limited, so the previous forecast for operating income has been maintained. The company will promptly disclose any further revisions depending on future business performance.