Completed building a foundation for Enterprise Business's growth
Toward the Next Stage of Growth
In the first half of FY2020, assessing the ever-changing circumstances amid the explosive expansion of COVID-19 infectious diseases worldwide, we conducted businesses operations with constantly considering how to continue our businesses activities while ensuring the safety of employees and how to transform the threat into an opportunity. Fortunately, in the information technology sector to which our Group belongs, the impact of COVID-19 has been limited. As a result, we achieved increases in both sales and profits in the first half of FY2020, with the consolidated net sales of 10,531 million yen (YoY +3.0%) and the consolidated operating income of 527 million yen (YoY +1.8%). Although the impact of this COVID-19 was a huge blow to the Japanese economy as a whole, it can be considered that new business opportunities for us will expand in the market, as teleworking/Work-from-home is becoming increasingly popular at various companies, and IT investment such as to reduce direct contact between people and people is accelerating.
Since June 2017, we have focused on expanding our Enterprise Business, centered on the system testing service, as the “Second Founding period” to foster the second pillar of earnings that follows our mainstay Entertainment Business. So far, we have strengthened our engineers and other human resources, expanded our services through aggressive use of alliances, and built an efficient operating system. As a result, we have finally built a foundation for Enterprise Business's growth with a certain level of its business size and profitability. Furthermore, in order to ensure new business opportunities that are expanding in the immediate future, it is necessary to develop completely new services and value offerings, rather than just evolving along the lines of extension of our existing services. For example, in order for our clients to develop high-quality products, it is better for us to provide not only system testing service, but also different supports such as usability tests to improve software from end-user’s view, cyber security services to enhance safety of clients’ system, or support to improve the environment of system development. It shows “the quality improvement" may have a huge potential to see a variety of new services and solutions. From now on, by “Exploitation” to strengthen existing services and “Exploration” to create new business opportunities, we intend to change to become the comprehensive solution provider not just to execute testing and detect software defects, but also to improve quality and security of our client’s business itself. To this end, starting in the second half of this fiscal year, as the new stage of the “Second Founding period”, we plan to further solidify the foundations we have built and to take on new challenges even more aggressively than before.
We look forward to your continued understanding and support.
President and CEO