Financial Highlights for Fiscal Year Ended December 31, 2018
- 12,799 million yen
(up 2.6% YoY)
- Operating profit
- 290 million yen
(down 9.4% YoY)
- 375 million yen
(down 24.5% YoY)
During the consolidated fiscal year ended December 31, 2018, while the Group achieved strong sales of software products sourced from Red Hat, Inc. as well as Gluegent series cloud services, revenues from providing support for system development and implementation were down from the previous fiscal year. As a result, the Group’s consolidated net sales increased by 2.6% year on year to 12,799 million yen, but its operating profit fell 9.4% to 290 million yen. The Group’s key management metrics EBITDA—which is the sum of operating profit, depreciation and amortization, and amortization of goodwill—stood at 375 million yen, down 24.5% from the previous year. Profit attributable to owners of parent amounted to 225 million yen for the year, compared with a loss of 587 million yen for the previous year.
Open System Infrastructure Segment
Sales of LifeKeeper, which were slow in the first half of the year, picked up in the second half and achieve a year-on-year increase. In addition, software products sourced from Red Hat, Inc. enjoyed robust sales, and OSS support services also achieved steady growth in revenue. As a result, net sales in this segment were up 5.8% year on year to 7,231 million yen.
Sales of software applications for multifunction printers, which were weak in the second quarter, returned to year-on-year growth in the second half of the year. In addition, sales of Gluegent series cloud services achieved a significant increase in revenue. In contrast, revenues from providing support for system development and implementation fell from the previous year. As a result, net sales in this segment were down 1.2% to 5,568 million yen.
Open System Infrastructure Segment
The segment income fell by 19.3% year on year to 115 million yen, partly due to the declining gross profit ratio of products sold and partly due to an increase in expenses associated with releasing an upgraded version of SIOS Coati.
The segment income declined by 1.4% year on year to 174 million yen, partly due to an increase in expenses associated with new businesses and partly due to a delay in an ongoing project to provide support for system development and implementation to a financial institution.
Consolidated Balance Sheets
- ・Current assets ：Accounts receivable increased by 235 million yen
- ・Current liabilities：An decrease of 133 million yen in long term loan payable
- ・Net assets：Increase by 282 million yen
Current assets were 4,450 million yen as of December 31, 2018, up 7.5% from the end of the previous fiscal year, reflecting an increase of 240 million yen in cash and deposits and an increase of 235 million yen in accounts receivable-trade.
Non-current assets were up 28.3% year on year to 907 million yen, reflecting an increase of 116 million yen in Investment securities.
As a result, total assets were up 10.5% year on year to 5,357 million yen as of December 31, 2018.
Current liabilities amounted to 3,154 million yen, up 11.4% from a year earlier, due primarily to an increase of 208 million yen in advance received and an increase of 81 million yen in accounts payable trade.
Non-current liabilities were down 10.2% year on year to 843 million yen, reflecting a decrease of 133 million yen in long-term loans payable.
As a result, total liabilities were up 6.0% year on year to 3,998 million yen as of December 31, 2018.
Total net assets were up 26.3% year on year to 1,359 million yen as of December 31, 2018, reflecting a profit of 225 million yen attributable to owners of parent company for the year.
The Group’s balance of consolidated cash and cash equivalents as of December 31, 2018, totaled 2,008 million yen, reflecting a decrease of 240 million yen from the end of the previous fiscal year.
Cash flows from operating Activities
Net cash provided by operating activities increased to 78 million yen for FY 2018. The increase was due profit before income taxes in advance received.
Cash Flows from Investing Activities
Net cash used in investing activities decreased to 184 million yen. The decrease was due primarily to the purchase of non-current assets.
Cash Flows from Financing Activities
Net cash used in financing activities decreased to 127 million yen. The decrease was due primarily to the repayment of long-term loans payable.