Performance Analysis

Highlights for Six Months Ended June 30, 2018

sales
6,270 million yen
(up 0.7% YoY)
Operating profit
127 million yen
(down 26.5% YoY)
EBITDA
166 million yen
(down 36.2% YoY)

During the six months ended June 30, 2018, whilst the Group achieved strong sales of software products sourced from Red Hat, Inc. as well as software applications designed for financial institutions, sales of our core products—led by LifeKeeper and software applications for MFPs—declined from the same period a year earlier. As a result, while the Group’s sales increased by 0.7% year on year to 6,270 million yen, its operating profit fell 26.5% to 127 million yen for the period. The Group’s key management metrics EBITDA—which is the sum of operating profit, depreciation and amortization, and amortization of goodwill—stood at 166 million yen, down 36.2% from the previous year. Profit attributable to owners of parent amounted to 79 million yen for the period, down 12.0%.

Sales

Open System Infrastructure Segment

Open system infra segment

While sales of LifeKeeper were down due to a decline in high-volume deals compared with a year earlier, sales of software products sourced from Red Hat, Inc. and of OSS-related products increased steadily. As a result, net sales in this segment increased 3.5% year on year to 3,543 million yen.

Application Segment

Application segment

Sales of business support systems to regional banks and other financial institutions surged from the previous year. By contrast, sales of software applications for MFPs decreased due to a decline in high-volume deals compared with the previous year, and the revenue from providing financial institutions with support for system development and implementation also declined. As a result, net sales in this segment were down 2.7% year on year to 2,727 million yen.

Operating Profit

Open System Infrastructure Segment

Open system infra segment

Although net sales in this segment increased from the same period the previous year, segment income was down 81.2% to 20 million yen, due to decreased sales of LifeKeeper and a decline in the gross profit ratio of products sold.

Application Segment

Web application segment

Segment income jumped 63.1% year on year to 107 million yen, due to a substantial increase in sales of profitable application products designed for financial institutions as well as a decline in amortization of goodwill and assets related to customers.

Consolidated Balance Sheets

Analysis of Balance Sheets

(1)Assets

The amount of current assets as of June 30, 2018, was up 3.2% from the end of the previous fiscal year, primarily reflecting an increase of 66 million yen in work in progress as well as an increase of 62 million yen in cash and deposits.
Non-current assets were up 9.4%, primarily reflecting an increase of 28 million yen in buildings.
As a result, total assets increased 4.1% to 5,049 million yen.

(2)Liabilities

The amount of long-term loans payable decreased by 66 million yen as a result of repayment.
However, total liabilities increased 3.4% to 3,902 million yen, primarily reflecting an increase of 288 million yen in advances received as well as an increase of 96 million yen in accounts payable-trade.

(3)Net Assets

Net assets were up 6.5% to 1,147 million yen, primarily reflecting a profit of 79 million yen attributable to owners of parent posted for the period.

Cash Flows

Analysis of Cash Flow

The Group’s balance of consolidated cash and cash equivalents as of June 30, 2018, totaled 2,311 million yen, which is an increase of 62 million yen from the end of the previous fiscal year, reflecting an increase in net cash provided by operating activities.

Cash flows from operating Activities

Net cash provided by operating activities amounted to 255 million yen, primarily reflecting an increase in advances received.

Cash Flows from Investing Activities

Net cash used in investing activities amounted to 70 million yen, primarily reflecting the purchase of non-current assets.

Cash Flows from Financing Activities

Net cash used in financing activities amounted to 111 million yen, primarily reflecting repayments of loans payable.

HOME PAGE

SIOS Investor Relations page

Welcome to SIOS Performance Analysis - SIOS has a few places you can go to find what you need online.

PAGE TOP