(5129) FIXER - New Analyst Report 11/15

Specializing in Microsoft Azure, FIXER is a cloud integrator.
- FIXER is a cloud integrator with strength in building core systems using Microsoft Azure. They classify their business into "Project Type Services" for developing new systems specialized for the cloud, migrating existing systems to the cloud, "Resale" for purchasing and selling licenses such as cloud services, "Managed Services" for maintenance and operation, and services like GaiXer's AI service under "SaaS".

24/8 term financial results for 24: 42% revenue decrease, 88% operating profit decrease
- The financial results for the 24/8 term showed a 41.5% decrease in revenue and an 87.6% decrease in operating profit compared to the previous period. The trade with the Ministry of Health, Labour and Welfare, which accounted for 56.2% of the 23/8 term revenue, ended in March of the 24th year, and the project-type services entering a cyclical slowdown phase experienced a significant decline, leading to a considerable decrease in both revenue and operating profit.

Company's plan for the 25/8 term: 2% revenue increase, 51% operating profit increase
For the 25/8 term, FIXER expects a 2.2% increase in revenue and a 50.7% increase in operating profit, compensating for the end of transactions with the Ministry of Health, Labor and Welfare by expanding high-margin project-based services and SaaS like GaiXer.
The Securities Research Center (hereinafter, the Center) has significantly lowered its revenue forecast for project-based services and resale, reducing the revenue for the 25/8 term from 6680 million yen to 5650 million yen (a 12.6% decrease from the previous period), and reducing operating profit from 621 million yen to 280 million yen (a 7.4% increase).

◆ Significant increase in revenue and profit is expected for the 26/8 term, while a slight profit increase is expected for the 27/8 term.
Considering the actual results of the 24/8 term and the company's measures, the Center revised its performance forecast for the 26/8 term downward and newly formulated the performance forecast for the 27/8 term.
For the 26/8 term, an increase of 20.4% in revenue and a 57.1% increase in operating profit is expected due to the anticipated expansion of SaaS and project-based services. For the 27/8 term, a 9.6% increase in revenue and a 9.5% increase in operating profit is expected, anticipating the expansion of SaaS, but a slowdown in the growth of project-based services.