Fuji Soft Incorporated (9749) Q1 2025 earnings summary

Executive summary

• Revenue rose 6.5% year-over-year to ¥83,492 million, driven by strong SI business and demand for DX and advanced technology solutions.

• Operating income increased 4.7% to ¥6,346 million, while ordinary income rose 7.5% to ¥6,218 million, despite higher personnel and operating costs.

• Net income attributable to shareholders fell 37.8% to ¥4,183 million, mainly due to the absence of last year's one-time real estate sale gain.

• The company is executing a mid-term plan focused on growth above market rate, profitability improvement, and group synergy.

• Shares are scheduled for delisting following a tender offer and subsequent procedures by FK Corporation, so no full-year earnings forecast is provided.

Financial highlights

• Gross profit grew 5.2% year-over-year to ¥18,925 million; gross margin slightly decreased to 22.7%.

• SG&A expenses increased 5.5% to ¥12,578 million, reflecting higher personnel and operating costs.

• Comprehensive income dropped 53.8% to ¥3,882 million, impacted by lower net income and other comprehensive items.

• EPS for Q1 FY2025 was ¥66.38, down from ¥106.96 in the prior year.

• Cash and deposits at quarter-end were ¥36,682 million, up ¥1,022 million from last year.

Segment performance

• SI business revenue up 5.9% year-over-year to ¥78,431 million; operating profit up 2.4% to ¥5,692 million, led by automotive and manufacturing demand.

• Embedded/control software and business software segments posted double-digit revenue growth, driven by automotive and manufacturing.

• Facility segment revenue declined 2.9% to ¥703 million, but operating profit increased 22.9% to ¥327 million due to completed building projects.

• Other segment revenue grew 20.6% to ¥4,356 million, with operating profit up 36.1% to ¥327 million, driven by increased call center services.

• Product & services segment revenue was flat; profit declined due to lower sales of in-house and third-party products.