System D (3804) Q3 2024 earnings summary

Executive summary

• Revenue for the nine months ended July 2024 was ¥3,278 million, down 1.1% year-over-year, with operating profit at ¥519 million, down 10.5% year-over-year.

• Net income attributable to shareholders was ¥344 million, a decrease of 11.4% compared to the same period last year.

• Main business of proprietary package software sales progressed steadily, but declines in merchandise and customization sales led to results below plan.

• Cloud services and stock-type business expanded, with notable growth in public and educational sector solutions.

Financial highlights

• Gross profit for the period was ¥1,391 million, down from ¥1,407 million year-over-year.

• Operating margin declined as operating profit fell to ¥519 million from ¥580 million year-over-year.

• EPS for the period was ¥53.83, compared to ¥60.79 in the previous year.

• Total assets increased to ¥6,594 million, up from ¥6,245 million at the previous fiscal year-end.

• Net assets rose to ¥4,299 million, with equity ratio at 65.2%.

Outlook and guidance

• Full-year revenue forecast remains unchanged at ¥4,886 million, with operating profit projected at ¥940 million and net income at ¥633 million.

• Dividend forecast for the year is ¥24 per share, up from ¥23 last year.