Cyberlinks <3683> announced its consolidated financial results for the third quarter of the fiscal year ending December 2024 (January to September 2024) on the 12th. Revenue reached 11.464 billion yen, an increase of 3.8% compared to the same period last year; operating profit increased by 0.3% to 0.735 billion yen; ordinary profit decreased by 2.0% to 0.742 billion yen; and quarterly net income attributable to the parent company surged by 95.3% to 0.445 billion yen.

Revenue from the distribution cloud business increased by 3.4% year-on-year to 3.491 billion yen, while segment profit (ordinary profit) decreased by 29.7% to 0.495 billion yen. The expansion of cloud play services such as EDI service "Cloud EDI-Platform" for wholesale trade and EDI service "BXNOAH" for retail trade resulted in increased steady income. However, the increase in labor costs due to salary increases and hiring for strengthening development and sales capabilities, as well as increased software depreciation, led to a decrease in profit. Regarding the core system "@rms" for food retail trade, a new version called "@rmsV6" was released in May 2024. Orders have already been received from multiple medium and large-sized customers. Additionally, a business partnership was initiated in February 2024 with SENSY Inc., which develops personal artificial intelligence, resulting in the introduction of "AI Automatic Ordering," which improves demand forecasting accuracy by combining its AI with the company's "@rms Automatic Ordering," released in July 2024. Furthermore, the business negotiation support service for "C2Platform" has completed a demonstration experiment in collaboration with the Japan Processed Food Wholesalers Association and five major food wholesale businesses. Based on insights gained from the experiment, efforts will continue towards expansion in the processed food wholesale industry.

Revenue from the public cloud business decreased by 5.2% to 4.894 billion yen, with segment profit (ordinary profit) decreasing by 1.2% to 0.293 billion yen. Despite contributions from large system update projects in the medical field, revenue and profit declined due to a decrease in disaster prevention construction projects and network construction projects compared to the previous year. On the other hand, the order for the document management system "ActiveCity" was strong, and the municipal-specific electronic certification service "Mynasign," released in the previous period, has been adopted for identity verification services in the smart library services of Mita City and citizen health app services, leading to increased steady income due to advancements in municipal DX-related services.

Revenue from the trust business increased by 122.3% year-on-year to 0.062 billion yen, while the segment loss (ordinary loss) amounted to 0.067 billion yen (compared to a loss of 0.082 billion yen in the same period last year). The expansion of the digital certificate issuance service "CloudCerts" contributed to the revenue increase. "CloudCerts" started issuing the pharmacist qualification certificate issued by the Japan Pharmaceutical Association, which is the first initiative of its kind in the country for the digitalization of national qualification certificates, in March 2024. Additionally, starting in August 2024, Kinki University began issuing completion certificates for foreign language extracurricular courses. Furthermore, efforts were made towards further service development, including the release of a standard version for small-scale users and exhibiting at trade shows.

Revenue from the mobile network business increased by 21.7% to 3.015 billion yen, with segment profit (ordinary profit) soaring by 8,313.3% to 0.206 billion yen. Strong sales of high-priced devices and an increase in incentive income related to device sales compared to the same period last year contributed to the significant rise in revenue and profit.

The consolidated earnings forecast for the fiscal year ending December 2024 remains unchanged from the initial plan, with sales of 16.073 billion yen, an 7.0% increase from the previous year, operating profit of 1.155 billion yen, an 11.0% increase, ordinary profit of 1.162 billion yen, a 9.3% increase, and net income attributable to the parent company's shareholders of 0.714 billion yen, a 60.4% increase.