Challenges and Reforms to Make a Sustainable Growth
In the fiscal year ended March 2020, net sales increased for 16 consecutive years to ¥21.1 billion (YoY +9.8%) thanks to the strong performance of our mainstay Entertainment Business, especially Game Console department of Debugging division, and the rapid growth of our newly developing Enterprise Business with more than 1.5 times sales as the previous year. On the other hand, operating income was 1.3 billion yen (YoY -13.2%), mainly due to some investment and other expenses such as M&A-related cost for our future growth as well as by the changes of market environment including the influence of COVID-19. This is the fact that the operating income declined from the previous year, however Enterprise Business has become profitable since the second quarter and it shows that the results of our initiatives as the “Second Founding” period have begun to steadily emerge.
At this moment, we have not disclosed the forecast for the fiscal year ending March 2021, because it is difficult to calculate reasonably the impact of COVID-19. However, we believe that changes in the market environment, such as the development of IoT (Internet of Things) and the spread of smart devices, will definitely be a tailwind for our group over the medium to long term, and it is the most important how quickly we will execute our growth strategies.
With our vision to become the Asia’s No.1 comprehensive testing solution provider, we will keep challenging to develop new businesses and to promote structural reforms for out sustainable growth.
We look forward to your continued understanding and support.
President and CEO