ISB (9702) Q3 2023 earnings summary

Executive summary

• 9M revenue and profit increased YoY, setting a new record for the third-quarter cumulative period; seventh consecutive fiscal period of revenue and profit growth.

• IT investment demand, led by existing customers, continued; orders were firm across all four business fields, and active sales efforts helped offset rising procurement costs.

Financial highlights

• 9M revenue was ¥24,073m, up ¥2,647m YoY and at 112% of the prior-year level.

• 9M operating income was ¥2,093m, up ¥371m YoY and at 122% of the prior-year level.

• 9M ordinary income was ¥2,143m, up ¥381m YoY; net income attributable to owners of the parent was ¥1,241m, up ¥192m.

Outlook and guidance

• FY2023 forecast: revenue ¥31,000m, operating income ¥2,600m and operating margin 8.4%.

• FY2023 forecast: ordinary income ¥2,645m and net income attributable to owners of the parent ¥1,590m.

• Mobility outlook includes developing contracted projects in the growth-oriented field; medical-related orders are expected to expand.