前年同期の単体業績と比較すると、E-Commerce事業がなくなった影響により売上高で8.1%減、営業利益で60.7%減となったが、既存事業ベースでは売上高で11.6%増、営業利益で7.5%減となった。営業利益の減益要因は、支社の移転・増床にかかる一時費用（約30百万円）の計上や研究開発費の増加（前年同期比28百万円増の48百万円）、並びに積極的な人材投資やSAP事業の立ち上げ準備等によるエンジニアの一時的な稼働率低下（同1.8ポイント低下の63.7%）が要因だ。第2四半期末の単体の従業員数は244名で前年同期比4名減だが、E-Commerce事業の人員32名が転籍した影響によるもので、既存事業ベースでは28名増（うち、新卒15名）となっている。そのほか、ベトナム子会社で49名の社員を有している。なお、E-Commerce事業にかかる持分法投資利益として18百万円を営業外収益として計上した。Performance trends of System Integrator <3826>
1. Overview of performance for the cumulative second quarter of the fiscal year ending February 2025
For the cumulative consolidated performance of the second quarter of the fiscal year ending February 2025, the revenue was 2,228 million yen, operating profit was 79 million yen, ordinary profit was 98 million yen, and net income attributable to parent company shareholders was 75 million yen, all exceeding the initial plan. The main reasons for the upward revision were the ability to acquire orders beyond expectations in the ERP business, as well as the ability to reduce temporary costs related to the relocation and expansion of Fukuoka and Osaka branch offices by approximately 15 million yen compared to expectations.
Compared to the individual performance of the same period of the previous year, the impact of the disappearance of the E-Commerce business resulted in an 8.1% decrease in revenue and a 60.7% decrease in operating profit. However, based on existing business, revenue increased by 11.6% and operating profit decreased by 7.5%. The reasons for the decrease in operating profit were the recognition of temporary costs related to the relocation and expansion of branches (approximately 30 million yen), an increase in research and development expenses (an increase of 28 million yen compared to the previous year to 48 million yen), as well as a temporary decrease in the operating rate of engineers due to active investment in personnel and the launch preparation of the SAP business (resulting in a 1.8-point decrease to 63.7%). The number of individual employees at the end of the second quarter decreased by 4 compared to the same period of the previous year, to 244, but this was due to the transfer of 32 personnel from the E-Commerce business. On an existing business basis, there was an increase of 28 employees (including 15 new graduates). Additionally, the company has 49 employees in its subsidiary in Vietnam. Furthermore, a share of profit from equity method investments related to the E-Commerce business was recognized as non-operating income, totaling 18 million yen.
ERP business maintains double-digit revenue growth, AI business and other businesses show reduced losses
Segment trends by business:
(1) Object Browser Business
Object Browser business revenue increased by 7.9% compared to the same period of the previous year, reaching 394 million yen, while segment profit decreased by 3.4% to 167 million yen. The revenue of the 'Object Browser' series remained at the same level as the previous year but 'OBPM Neo' expanded smoothly due to additional projects from existing major IT companies and acquiring new contracts. The MRR (monthly recurring revenue) for 'OBPM Neo' continued to grow at a double-digit rate, reaching 34,996 thousand yen in the second quarter, a 19.2% increase compared to the same period of the previous year, with a cancellation rate of 1.3% at a low level. On the profit side, the increase in temporary sales expenses related to organizational restructuring led to reduced profits.
(2) ERP Business
Sales revenue for the ERP business increased by 12.3% year-on-year to 1,781 million yen, while segment profit decreased by 4.3% to 329 million yen. With an increase in inquiries from new customers, focusing on the manufacturing industry, and efforts to strengthen the structure, sales revenue has been performing well, mainly centered around 'GRANDIT'. Additionally, the company has secured its first order for 'SAP S/4HANA' and has been working on development tasks since June 2024, which seems to be progressing smoothly so far. The consolidated subsidiary, KEYSTONE SOLUTIONS COMPANY LIMITED, is also expanding smoothly, including securing ERP projects for non-group, Japanese manufacturing companies, contributing slightly to profits. For the same subsidiary, 52.7% of sales revenue comes from orders other than the company itself, and the company plans to continue its sales activities to maintain a similar sales ratio in the future. On the profit side, the recognition of relocation and expansion costs for the Fukuoka and Osaka branches, along with a temporary decrease in engineer operating rates due to the launch preparations of the SAP business, were contributing factors to the decrease in earnings.
(3) AI Business
Sales revenue for the AI business increased by 56.3% year-on-year to 34 million yen, while segment loss amounted to 17 million yen (compared to a loss of 19 million yen in the previous year). The increase in sales revenue was driven by a significant increase in simple verification projects to assess the feasibility of the visual inspection system 'AISIA-AD' and a solid performance in PoC projects totaling 4. Progress is being made in considering a new service to streamline the confirmation tasks of reading drawings used in the manufacturing industry, using large-scale language models and confirmation rules. The company has already secured PoC projects using the same technology in the second quarter.
(4) qitabankuai
Other sales revenue, including new businesses, decreased by 18.2% year-on-year to 17 million yen, while segment losses amounted to 8 million yen (compared to a loss of 35 million yen in the previous year). Factors leading to the decrease in revenue included sluggish growth in the programming skills assessment service 'TOPSIC' and the termination of the 'IDEA GARDEN' business at the end of the previous fiscal year. However, the loss amount decreased due to a reduction in related costs.
Regarding 'TOPSIC', some cancellations occurred in March, which is a contract renewal period for many customer companies, resulting in the number of contracting companies remaining at a level similar to the previous year. Monthly Recurring Revenue (MRR) for the second quarter decreased by 10.8% to 2,604 thousand yen, influenced by the cancellation of high-revenue customers for the fifth consecutive quarter. The cancellation rate increased to 3.5%, but since the number of contracting companies is around 40-50, even the cancellation of one company can lead to a significant change in the growth rate. The company plans to enhance functions and focus its marketing efforts on corporate HR departments and training service companies to increase the number of contracting companies.
Financially, the company is in good standing, with cash on hand allocated towards growth investments, including M&A, and returning value to shareholders.
3. Financial Condition and Management Indicators
As of the end of the second quarter of the fiscal year ending February 2025, the total consolidated assets decreased by 116 million yen compared to the end of the previous fiscal year, reaching 4,635 million yen. Looking at the main factors contributing to the increase or decrease, current assets decreased by 346 million yen due to dividend payments and corporate tax payments, with cash and deposits decreasing, while accounts receivable and contract assets increased by 109 million yen. Fixed assets saw an increase in tangible fixed assets by 85 million yen, investments and others by 24 million yen each, and a decrease of 12 million yen in software (including software temporary accounts).
Total liabilities decreased by 60 million yen from the previous period to 1,027 million yen. Trade payables and contract liabilities increased by 189 million yen, while unpaid corporate taxes decreased by 320 million yen. Total net assets decreased by 56 million yen to 3,608 million yen. With the recognition of interim net profit of 75 million yen and the payment of dividends amounting to 131 million yen, retained earnings decreased by 62 million yen.
Looking at the management indicators, with a equity ratio of 77.7% and debt-free management, the company has a strong cash position of over 2.6 billion yen, which is ample considering the company's sales scale, indicating that the financial condition is favorable. The company is deemed to have a good financial standing and has the policy of utilizing its cash for growth investments, including mergers and acquisitions, and shareholder returns.
(Written by FISCO guest analyst, Jo Sato)
