ACCESS CO., LTD. Consolidated Financial Results
for the Six Months Ended July 31, 2022
[Japanese GAAP]
August 31, 2022
Company name: ACCESS CO., LTD.
Stock exchange listing: Tokyo Stock Exchange
Securities code: 4813
URL: https://www.access-company.com
Representative: Kiyoyasu Oishi, Representative Director, President & CEO
Contact: Mitsuhiro Okada, Executive Officer, CFO, VP of Corporate Administration Unit
Phone: +81-3-6853-9088
Scheduled date of filing quarterly securities report: September 7, 2022
Scheduled date of commencing dividend payments: -
Availability of supplementary briefing material on quarterly financial results: Available
Schedule of quarterly financial results briefing session: Scheduled (for institutional investors and analysts)
(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Six Months Ended July 31, 2022 (February 1, 2022 to July 31, 2022)
(1) Consolidated Operating Results | (% indicates changes from the previous corresponding period.) | ||||||||||
Net sales | Operating profit | Ordinary profit | Profit attributable to | ||||||||
owners of parent | |||||||||||
Six months ended | Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||
July 31, 2022 | 5,139 | 30.4 | (2,016) | - | (1,692) | - | (1,743) | - | |||
July 31, 2021 | 3,941 | 26.8 | (1,818) | - | (1,337) | - | (1,412) | - | |||
(Note) Comprehensive income: Six months ended July 31, 2022: ¥(584) million [-%] | |||||||||||
Six months ended July 31, 2021: ¥(785) million [-%] | |||||||||||
Basic earnings | Diluted earnings | ||||||||||
per share | per share | ||||||||||
Six months ended | Yen | Yen | |||||||||
July 31, 2022 | (44.66) | - | |||||||||
July 31, 2021 | (36.17) | - | |||||||||
(2) Consolidated Financial Position | |||||||||||||||||||
Total assets | Net assets | Equity ratio | |||||||||||||||||
Million yen | Million yen | % | |||||||||||||||||
As of July 31, 2022 | 26,753 | 24,368 | 90.9 | ||||||||||||||||
As of January 31, 2022 | 27,962 | 25,393 | 90.6 | ||||||||||||||||
(Reference) Equity: As of July 31, 2022: ¥24,319 million | |||||||||||||||||||
As of January 31, 2022: ¥25,339 million | |||||||||||||||||||
2. Dividends | |||||||||||||||||||
Annual dividends | |||||||||||||||||||
1st | 2nd | 3rd | Year-end | Total | |||||||||||||||
quarter-end | quarter-end | quarter-end | |||||||||||||||||
Yen | Yen | Yen | Yen | Yen | |||||||||||||||
Fiscal year ended January 31, 2022 | - | 0.00 | - | 0.00 | 0.00 | ||||||||||||||
Fiscal year ending January 31, 2023 | - | 0.00 | |||||||||||||||||
Fiscal year ending January 31, 2023 | - | 0.00 | 0.00 | ||||||||||||||||
(Forecast) | |||||||||||||||||||
(Note) Revision to the forecast for dividends announced most recently: No |
3. Consolidated Financial Results Forecast for the Fiscal Year Ending January 31, 2023 (February 1, 2022 to January 31, 2023)
(% indicates changes from the previous corresponding period.)
Net sales | Operating profit | Ordinary profit | Profit attributable | Basic earnings | |||||
to owners of parent | per share | ||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | |
Full year | 11,800 | 19.8 | (1,500) | - | (1,550) | - | (1,750) | - | (44.68) |
(Note) Revision to the financial results forecast announced most recently: No
* Notes:
(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting in changes in scope of consolidation): No
Newly added: - (Name) - | Excluded: - (Name) - |
- Accounting policies adopted specifically for the preparation of quarterly consolidated financial statements: No
- Changes in accounting policies, changes in accounting estimates and retrospective restatement
- Changes in accounting policies due to the revision of accounting standards: Yes
- Changes in accounting policies other than 1) above: No
- Changes in accounting estimates: No
- Retrospective restatement: No
- Total number of issued shares (common stock)
- Total number of issued shares at the end of the period (including treasury shares):
July 31, 2022: 39,633,000 shares
January 31, 2022: 39,633,000 shares
-
Total number of treasury shares at the end of the period: July 31, 2022: 1,171,621 shares
January 31, 2022: 466,421 shares - Average number of shares during the period:
Six months ended July 31, 2022: 39,031,283 shares
Six months ended July 31, 2021: 39,059,316 shares
- The number of treasury shares includes the number of the Company's shares held by the Employee Stock Ownership Plan (six months ended July 31, 2022: 404,800 shares, fiscal year ended January 31, 2022: 465,100 shares).
- These quarterly financial results are outside the scope of quarterly review by certified public accountants or audit firms.
- Explanation of the proper use of financial results forecast and other notes
Financial results forecasts stated herein are determined based on information available to the Company and the Group as of the disclosure date of this document and contain various inherent risks and uncertainties. Please be advised that actual results may differ significantly from the financial results forecasts stated herein due to various factors including the economic conditions surrounding the Company and the Group's business, market trends, and exchange rates.
Table of Contents | ||
1. Qualitative Information on the Quarterly Results .......................................................................................... | 2 | |
(1) | Explanation of Business Results ................................................................................................................ | 2 |
(2) | Explanation of Financial Position .............................................................................................................. | 4 |
(3) | Explanation of Consolidated Financial Results Forecasts and Other Forward-looking Statements .......... | 4 |
2. Quarterly Consolidated Financial Statements and Primary Notes ................................................................. | 5 | |
(1) | Quarterly Consolidated Balance Sheets ..................................................................................................... | 5 |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income ............................................. | 7 |
Quarterly Consolidated Statements of Income (Six Months Ended July 31) ............................................... | 7 | |
Quarterly Consolidated Statements of Comprehensive Income (Six Months Ended July 31) ..................... | 8 | |
(3) | Quarterly Consolidated Statements of Cash Flows .................................................................................... | 9 |
(4) | Notes to the Quarterly Consolidated Financial Statements ...................................................................... | 11 |
(Notes on Going Concern Assumption) ...................................................................................................... | 11 | |
(Notes in Case of Significant Changes in Shareholders' Equity) ................................................................ | 11 | |
(Changes in Accounting Policies) ............................................................................................................... | 12 | |
(Segment Information) ................................................................................................................................ | 13 | |
(Significant Subsequent Events) ................................................................................................................. | 14 |
1
1. Qualitative Information on the Quarterly Results
(1) Explanation of Business Results
During the six months ended July 31, 2022 (February 1, 2022 to July 31, 2022), the outlook for the global economy remained uncertain due to the resurgence of COVID-19 caused by the Omicron variant, soaring raw material prices, supply chain disruptions, Russia's invasion of Ukraine, and other factors.
During the six months ended July 31, 2022, all business segments progressed generally as planned. The number of non-recurring development projects in the IoT Business increased and the number of new orders for the white box solution OcNOS® in the Network Business increased, which led to an increase in net sales year on year. By contrast, due to the impact of exchange rate fluctuations, in the Network Business segment, which has business bases in the U.S. and where both net sales and expenses are mainly denominated in US dollars, net sales and expenses after conversion to yen increased, and thus resulting in an increase in net sales and operating loss.
As a result, for the consolidated business performance for the six months ended July 31, 2022, the Company reported ¥5,139 million in net sales (up 30.4% year on year) and ¥2,016 million in operating loss (operating loss of ¥1,818 million in the same period of the previous consolidated fiscal year).
Moreover, the Company has applied the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and other standards from the beginning of the first quarter of the fiscal year under review. Details are as described in "2. Quarterly Consolidated Financial Statements and Primary Notes (4) Notes to the Quarterly Consolidated Financial Statements (Changes in Accounting Policies) (Application of Accounting Standard for Revenue Recognition, etc.)."
Initiatives of each business segment are as follows.
As of the current fiscal year, we have changed our business segments with the intention of strengthening global collaboration for products and services and creating further synergies. They are divided into the "IoT Business," which includes the IoT field and Digital Publishing field, the "Web Platform Business," which includes the Japanese Web Platform field and overseas bases in Europe, China, and South Korea, and the "Network Business," centered on a U.S. subsidiary IP Infusion Inc. Accordingly, the following comparisons and analyses for the six months ended July 31, 2022 are based on segment classification after this change. Details on the segments are described in "2. Quarterly Consolidated Financial Statements and Primary Notes (4) Notes to the Quarterly Consolidated Financial Statements (Segment Information) Segment Information 3. Matters related to changes in reportable segments."
IoT Business
The Group's IoT business is focused on two major fields, as follows. In the IoT field, we provide solutions to accelerate the promotion of digital transformation (DX) of enterprises and various IoT solutions by taking advantage of our strength in providing one-stop services for sensor technology, communication technology, cloud technology, application development capabilities, etc. In the Digital Publishing field, centered on the EPUB 3 compatible digital publishing solution, "PUBLUS®," we provide publishing solutions that combine advanced expressive ability with the versatility to support a wide range of content, and offer a comprehensive range of products, from user applications to content distribution systems and server systems. In addition, through our Taiwanese subsidiary, we provide the CROS® cloud service, which integrates business support systems and advertising analysis functions, to Japanese mail-order businesses entering Asian regions including Taiwan and Singapore.
With regard to the business performance of this segment for the six months ended July 31, 2022, in the IoT field, inquiries for non-recurring development projects for the telecommunication service and construction industries, as well as inquiries for our own products, including the "Linkit®" series that includes an indoor/outdoor location sharing business chat, increased, which led to an increase in net sales and profits year on year.
2
(Million yen) | |||
IoT Business | Six months ended | Six months ended | Year-on-year change |
July 31, 2021 | July 31, 2022 | ||
Net sales to external customers | 1,942 | 2,586 | 33.2% |
Segment profit or loss | (309) | (48) | - |
Web Platform Business
In collaboration with local subsidiaries in Germany, China, and South Korea, in domestic and overseas markets, we provide embedded software products including the "NetFront® Browser" series, a high-performance,high-functionality web browser with a rich track record of being installed on smart devices, information appliances, and various other devices. We also provide content distribution and service platforms for in-vehicle infotainment, and are working to expand our global market share of TV as a browser application and in-vehicle browsers.
With regard to the business performance of this segment for the six months ended July 31, 2022, net sales and profits decreased year on year, mainly due to changes in contract timing for some in-vehicle browser projects in Japan.
(Million yen) | |||
Web Platform Business | Six months ended | Six months ended | Year-on-year change |
July 31, 2021 | July 31, 2022 | ||
Net sales to external customers | 1,009 | 895 | (11.3%) |
Segment profit or loss | (108) | (154) | - |
Network Business
The Company has established local subsidiaries in India, Canada, and other countries, centered on its U.S. subsidiary, IP Infusion Inc., and is working to maintain the foundation of its existing business, the "ZebOS®" series, which is a base software platform for network equipment, while focusing on expanding the OcNOS® business, an integrated Network OS for white box. As we enter the era of 5G, with the expected further increase in communication traffic, the market for white box is growing worldwide, since data center operators, telecommunications carriers, and IXP (Internet Exchange Point) operators see white box as an effective means to significantly reduce network infrastructure capital investment and operation costs, while increasing the degree of freedom in their operations. Under these circumstances, IP Infusion Inc. has expanded our wide range of white box solutions, such as Cell Site Router (CSR) applications in common platforms for both wide area and local area networking for telecommunication service providers, Universal Customer Premise Equipment (uCPE) applications, and the commercial version of "SONiC distribution" for data centers. Furthermore, we are working on the stable provision of white box solutions and support for telecommunication service providers through partnership with major distributors including KGPCo, and TechData, and global system integrators including Wipro Limited.
With regard to the business performance of this segment for the six months ended July 31, 2022, in addition to the number of new customers who have adopted IP Infusion Inc.'s solutions, including OcNOS®, reaching approximately 40, the amount of orders received and the number of repeat orders increased as well. Expenses increased due to increased personnel expenses associated with enhancement of personnel structure and depreciation for software. Due to these factors, US dollar-denominated net sales increased, and operating loss expanded slightly. In addition, due to the impact of exchange rate fluctuations, net sales and operating loss after conversion to yen increased, resulting in an increase in net sales but a decrease in profits year on year.
3
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Access Co. Ltd. published this content on 22 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 September 2022 02:09:07 UTC.
