Fiscal Year Ending March 2027 Second Quarter (Interim) Financial Summary [Japanese GAAP] (Consolidated)

Overview of Results

AXELL Corporation posted consolidated interim results for the second quarter of the fiscal year ending March 2027 with net sales of 9,639 million yen (YoY increase of 26.2%), operating income of 1,297 million yen, ordinary income of 1,300 million yen, and interim net income attributable to owners of parent of 964 million yen. While net sales showed record growth, gross profit margin declined despite progress in passing on price increases; however, profitability remained resilient through expansion of value-added products and development in the AI domain. The AI segment experienced a revenue decline, whereas the LSI segment achieved revenue growth. Cash and cash equivalents totaled 7,711 million yen, and the equity ratio remained high at 81.7%.

Outlook and Key Points

Supplementary materials for the financial results will be prepared, and the full-year earnings forecast remains unchanged from the prior announcement. The order backlog at the interim period end is influenced by demand trends and fluctuations in the memory market; nevertheless, company-wide cost adjustments and price normalization are maintaining profitability. Expansion of business activities in the AI domain, increased market recognition, and growth of the customer base are expected to be future growth drivers.