Business overview
Overview of business performance
January 2026
Financial Results (3rd Quarter of the Fiscal Year Ending March 2026)
During the third quarter of the current consolidated cumulative period, the Japanese economy showed signs of a gradual recovery due to factors such as improvements in the employment and income environment and increased inbound demand, despite some impacts from U.S. trade policies. However, the outlook remains uncertain due to factors such as the unstable international situation, the weak yen, rising prices, and rising interest rates as a result of monetary policy. In the information services industry to which our group belongs, we expect IT investment to continue to expand against the backdrop of a recovery in the domestic economy and growing needs for cloud and AI utilization among companies and local governments.
In this environment, our group has set its mission as "Connect the world’s data and make it useful for everyone." and has set "four shifts (business shift, technology shift, organizational shift, and human resources shift)" as its strategy, and is working to further expand its data integration business, centered on HULFT business and data platform business.
The Group's performance for the third quarter of the current consolidated fiscal year is as shown in the table below.
(Unit: million yen)
| Sales | Operating profit | Operating profit | Interim net income attributable to owners of parent | |
|
Current third quarter consolidated cumulative period |
16,364 | 934 | 953 | 606 |
|
Previous consolidated cumulative third quarter |
18,488 | 1,557 | 1,568 | 1,028 |
|
Rate of increase/decrease |
△11.5％ | △40.0％ | △39.2％ | △41.0％ |
The main factor behind the decrease in revenue was a decrease in system development projects in the system outsourcing business. Furthermore, due to factors such as the expansion of the data platform business, the sales ratio of data integration business, which the Group uses as an indicator to measure the progress of its business shift, rose to 57.9% (up 7.5 points year on year). The main factors behind the decrease in profit were the decrease in sales and the heavy workload imposed on some projects that were under development, which resulted in the recording of a provision for loss on orders of 439 million yen in cost of sales as future development costs necessary to turn these projects around.
In the previous consolidated fiscal year, the reportable segments were the "HULFT business," "Data platform business," "Distribution IT services business," and "Financial IT services business." However, from the current consolidated fiscal year, the "Distribution IT services business" and the "Financial IT services business" have been integrated, and the segment classification has been changed to the "HULFT business," "Data platform business," and "System outsourcing business."
As part of our business strategy, we have adopted an "organizational shift," and through restructuring into a functional organization, we have strengthened collaboration between engineers and established a system that allows us to develop our system outsourcing business, which had previously been conducted by client industry, across a cross-sectional scale. With the conclusion of a large-scale project in the distribution IT services business in the previous consolidated fiscal year, we have decided to change our segment classification in order to maximize organizational resources and make more appropriate decisions than ever before.
Comparisons and analyses with the third quarter consolidated cumulative period have been made using the new names and categories.
The business results by segment for the third quarter of the current consolidated fiscal year are as follows. Inter-segment transactions have not been eliminated.
HULFT Business
This business provides sales and support services for our flagship products, "HULFT" and "DataSpider Servista," which are the standard for data integration software in Japan, as well as related products.
Net sales were 7,280 million yen (down 1.6% year-on-year). The main reason for the decrease in sales was a decrease in orders for large license sales projects, despite steady progress in renewals of support services. Support service sales for the third quarter of the fiscal year under review increased 5.8% year-on-year due to steady progress in renewals, etc. On the other hand, license sales decreased 12.5% year-on-year due to a decrease in orders for large projects like those in the same period last year, etc. Operating profit was 2,965 million yen (down 10.2% year-on-year), due to a decrease in profits resulting from the decrease in sales and an increase in selling, general and administrative expenses resulting from a shift of resources to data integration business.
Data Platform Business
This business leverages the Company's strengths in "HULFT," "DataSpider Servista," and the Japan-originated iPaaS "HULFT Square" to provide services that improve operational efficiency and management innovation by linking intra- and inter-company systems with SaaS data.
Net sales totaled 2,188 million yen (up 13.8% year-on-year). The increase was mainly due to higher sales of HULFT Square. The introduction of "HULFT Square" is expanding, mainly among enterprise companies, due to the promotion of data utilization backed by the evolution of generative AI and other factors, and by capturing needs such as migration of legacy systems, etc. Sales of "HULFT Square" for the period under review increased 133.8% year-on-year. On the other hand, due to an increase in selling, general and administrative expenses accompanying the shift of resources to the data integration business and the high load on some projects that were under development, a provision for loss on order received of 439 million yen was recorded as cost of sales to cover future development costs required for this turnaround. As a result, the Company posted an operating loss of 2,671 million yen (compared with an operating loss of 2,047 million yen in the same period of the previous fiscal year).
System outsourcing business
This business provides information processing services, system development and operation services, primarily to the financial and distribution retail industries.
Sales were 6,895 million yen (down 24.8% year on year). The main reason for the decrease in sales was a decrease in system development projects. Operating profit was 639 million yen (up 112.8% year on year). The main reason for the increase in profit was cost reductions resulting from a shift of resources to data integration business.
