System Integrator ＜3826＞ announced financial results for the fiscal year ending 2024/2 on the 15th. Net sales increased 7.8% from the previous fiscal year to 4.835 billion yen, operating profit decreased 19.3% to 328 million yen, ordinary profit decreased 19.3% to 336 million yen, and net income increased 237.2% to 944 million yen.
Sales in the Object Browser business increased 6.3% from the same period last year to 739 million yen, and segment profit increased 16.0% to 332 million yen. In the current fiscal year, the database development/design support tool “Object Browser” achieved stable sales by enhancing functions that enhance development productivity, such as automatic SQL generation by AI. Also, MRR (Monthly Recurring Revenue) of the project management tool “OBPM Neo” increased by about 05 billion yen compared to the previous fiscal year due to an increase in inquiries due to the resumption of various marketing measures that had been suspended due to the COVID-19 pandemic.
Sales in the e-commerce business fell 22.1% to 713 million yen, and segment profit fell 46.3% to 172 million yen. In this fiscal year, multiple development projects for “Adobe Commerce,” which were commercialized from the previous fiscal year, progressed. However, response to recent changes in the market environment, including post-COVID-19, and diversification of customer requests has been delayed in order to acquire new orders. Furthermore, in the future, due to the establishment of a joint venture, it will be recorded as non-operating profit and loss as equity method investment profit and loss.
Sales in the ERP business increased 19.6% from the same period to 3.295 billion yen, and segment profit increased 30.7% to 652 million yen. In the current fiscal year, a development project for existing “GRANDIT” users progressed as a response to the invoice system that came into effect from 2023/10, and sales of “telegraph law compatible solutions” that assume compliance with the revised electronic book storage law, which became mandatory from 2024/1, also increased. Also, orders for new large-scale projects remained steady.
Sales in the AI business fell 44.8% from the same period to 37 million yen, and segment losses were 42 million yen (loss of 0.13 billion yen in the same period last year). In the current fiscal year, orders involving the expansion of existing customers were anticipated, but it took time to verify results and examine them. Also, handling of the AI exterior system “Image Pro” manufactured by RUTILEA began in 2023/10 so that customers can perform accuracy verification more easily, and although the number of inquiries increased drastically, sales declined, resulting in losses in terms of profit and loss.
Sales from other businesses fell 1.9% to 50 million yen, and segment loss was 57 million yen (loss of 75 million yen). Two new businesses are being carried out: the programming skill determination service “TOPSIC” and the idea creation platform “IDEA GARDEN.” “TOPSIC” is a cloud service that can determine the programming skills of test takers online and in real time. It responds to needs such as screening examinees for mid-career recruitment and programming education for employees. “IDEA GARDEN” was released in November 2021 as an idea creation platform to encourage the creation and development of ideas, but as a result of examining it based on various indicators such as the intention of monetization, marketability, difficulty of business expansion, etc., it was decided to withdraw from the business as of the end of February 2025. Note that the impact on business results will be minor. In the current fiscal year, we focused on customer success activities to encourage continued use along with acquiring new customers.
Regarding the full-year earnings forecast for the fiscal year ending 2025/2, we expect sales to decrease 6.8% from the previous fiscal year to 4.508 billion yen, operating profit down 51.3% to 160 million yen, ordinary profit down 47.0% to 178 million yen, and net income to 109 million yen, down 88.5% from the same period. This includes a total of approximately 140 million yen of costs related to expansion/relocation of business sites and research and development expenses related to new technologies/products as costs for investment for future growth.