November 10, 2021 | |||
Summary of Consolidated Financial Results | |||
for the Second Quarter of Fiscal Year Ending March 31, 2022 | |||
(Six Months Ended September 30, 2021) | |||
[Japanese GAAP] | |||
Company name: | Japan System Techniques Co., Ltd. | Listing: Tokyo Stock Exchange, First Section | |
Stock code: | 4323 | URL: https://www.jast.jp | |
Representative: | Takeaki Hirabayashi, President and CEO | ||
Contact: | Hiroyuki Norimoto, General Manager of General Affairs Department | Tel: +81-6-4560-1000 | |
Scheduled date of filing of Quarterly Report: | November 11, 2021 | ||
Scheduled date of payment of dividend: | - | ||
Preparation of supplementary materials for quarterly financial results: | Yes | ||
Holding of quarterly financial results meeting: | Yes (for analysts) |
Note: The original disclosure in Japanese was released on November 10, 2021 at 16:00 (GMT +9).
(All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the Second Quarter Ended September 30, 2021 (April 1, 2021 - September 30, 2021)
(1) Consolidated results of operations | (Percentages represent year-on-year changes) | |||||||||
Net sales | Operating income | Ordinary income | Profit attributable to | |||||||
owners of parent | ||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | |||
Six months ended Sep. 30, 2021 | 10,042 | - | 992 | - | 1,004 | - | 686 | - | ||
Six months ended Sep. 30, 2020 | 8,042 | (6.6) | 23 | (87.9) | 58 | (70.9) | (309) | - |
Note: Comprehensive income (million yen) | Six months ended Sep. 30, 2021: | 706 | (-%) | |||
Six months ended Sep. 30, 2020: | (258) | (-%) | ||||
Net income per share | Diluted net income per | |||||
share | ||||||
Yen | Yen | |||||
Six months ended Sep. 30, 2021 | 120.45 | - | ||||
Six months ended Sep. 30, 2020 | (57.71) | - |
Note: Beginning with the first quarter of the fiscal year ending March 31, 2022, JAST has applied Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020). All figures for the six months ended September 30, 2021 incorporate this accounting standard and comparisons with the first half of the previous fiscal year are omitted.
(2) Consolidated financial position
Total assets | Net assets | Equity ratio | Net assets per share | |
Million yen | Million yen | % | Yen | |
As of Sep. 30, 2021 | 14,212 | 8,647 | 60.6 | 1,397.61 |
As of Mar. 31, 2021 | 12,861 | 6,850 | 53.0 | 1,265.96 |
Reference: Shareholders' equity (million yen) As of Sep. 30, 2021: 8,611 As of Mar. 31, 2021: 6,813
Note: Beginning with the first quarter of the fiscal year ending March 31, 2022, JAST has applied Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020). All figures as of September 30, 2021 incorporate this accounting standard.
2. Dividends
Dividend per share | |||||||
1Q-end | 2Q-end | 3Q-end | Year-end | Total | |||
Yen | Yen | Yen | Yen | Yen | |||
Fiscal year ended Mar. 31, 2021 | - | 0.00 | - | 28.00 | 28.00 | ||
Fiscal year ending Mar. 31, 2022 | - | 0.00 | |||||
Fiscal year ending Mar. 31, 2022 (forecasts) | - | 30.00 | 30.00 |
Note: Revisions to the most recently announced dividend forecast: None
3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2022 (April 1, 2021 - March 31, 2022)
(Percentages represent year-on-year changes)
Net sales | Operating income | Ordinary income | Profit attributable to | Net income per share | ||||||
owners of parent | ||||||||||
Million yen | % | Million yen | % | Million yen | % | Million yen | % | Yen | ||
Full year | 19,500 | 3.8 | 1,330 | 9.3 | 1,360 | 3.8 | 820 | 41.7 | 152.37 | |
Note: Revisions to the most recently announced consolidated earnings forecasts: None |
* Notes
(1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None
Newly added: - | Excluded: - |
- Application of special accounting methods for presenting quarterly consolidated financial statements: None
- Changes in accounting policies and accounting-based estimates, and restatements
1) | Changes in accounting policies due to revisions in accounting standards, others: | Yes |
2) | Changes in accounting policies other than 1) above: | None |
3) | Changes in accounting-based estimates: | None |
4) | Restatements: | None |
(4) Number of outstanding shares (common shares)
1) Number of shares outstanding at the end of the period (including treasury shares)
As of Sep. 30, 2021: | 6,209,230 shares | As of Mar. 31, 2021: | 5,612,230 shares |
2) Number of treasury shares at the end of the period | |||
As of Sep. 30, 2021: | 47,623 shares | As of Mar. 31, 2021: | 230,423 shares |
3) Average number of shares outstanding during the period | |||
Six months ended Sep. 30, 2021: | 5,703,256 shares | Six months ended Sep. 30, 2020: | 5,362,306 shares |
Note 1: The current quarterly summary report is not subject to quarterly review by certified public accountants or auditing firms.
Note 2: Cautionary statement with respect to forward-looking statements
Forecasts of future performance in these materials are based on assumption judged to be valid and information available to the Company's management at the time the materials were prepared, but are not promises by the Company regarding future performance. Actual results may differ materially from the forecasts. Please refer to "1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecasts and Other Forward-looking Statements" on page 3 for forecast assumptions and notes of caution for usage.
Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/22
Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance | 2 | |
(1) | Explanation of Results of Operations | 2 |
(2) | Explanation of Financial Position | 3 |
(3) | Explanation of Consolidated Forecasts and Other Forward -looking Statements | 3 |
2. Quarterly Consolidated Financial Statements and Notes | 4 | |
(1) | Quarterly Consolidated Balance Sheet | 4 |
(2) | Quarterly Consolidated Statements of Income and Comprehensive Income | 6 |
Quarterly Consolidated Statement of Income | ||
For the Six-month Period | 6 | |
Quarterly Consolidated Statement of Comprehensive Income | ||
For the Six-month Period | 7 | |
(3) | Quarterly Consolidated Statement of Cash Flows | 8 |
(4) | Notes to Quarterly Consolidated Financial Statements | 10 |
Going Concern Assumption | 10 | |
Significant Changes in Shareholders' Equity | 10 | |
Changes in Accounting Policies | 10 | |
Additional Information | 11 | |
Segment and Other Information | 11 | |
Business Combinations | 12 |
1
Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/22
1. Qualitative Information on Quarterly Consolidated Financial Performance
(1) Explanation of Results of Operations
In the first half of the current fiscal year, consumer spending and corporate activities in Japan were severely restricted by extended states of emergency declared because of the pandemic and other measures to prevent the spread of infections. In addition, new ways of working and new life styles have emerged because of the pandemic. Although there are expectations for the economy to improve as more people are vaccinated and other me asures are taken to stop the pandemic, the outlook for the Japanese economy remains uncertain.
In the IT industry in Japan, according to the latest statistics in the "Survey of Selected Service Industries" by the Ministry of Economy, Trade and Industry (the final August 2021 figures), net sales continued to climb, rising 0.4% year on year in fiscal 2020 compared with 4.0% annual growth in fiscal 2019. The latest figures for August 2021 were up 3.4% year on year.
Consolidated sales of the Japan System Techniques Group (Japan System Techniques Co., Ltd. (JAST) and its consolidated subsidiaries, hereafter "the Group") in the first half were 10,042 million yen (up 24.9% year on year). Operating income was 992 million yen (vs. operating income of 23 million yen in the same period of the previous fiscal year), ordinary income was 1,004 million yen (vs. ordinary income of 58 million yen in the same period of the previous fiscal year), and profit attributable to owners of parent was 686 million yen (vs. loss attributable to owners of parent of 309 million yen in the same period of the previous fiscal year).
Business segment performance was as follows.
(Software business)
Two negative factors that held down the performance of this business in the same period of the previous fiscal year have largely ended. One is several unprofitable contracted software development projects that weighed on earnings. The other is the suspension of some software development investments, mainly by major customers, because of the pandemic. The performance of this business also benefited from strong sales of licenses for BankNeo, a data integration package for financial institutions . A recovery in sales and earnings in the ASEAN region also contributed to first half performance. As a result, there was a big improvement in the profitability of the software business. First half sales totaled 6,986 million yen (up 26.0% year on year) and the operating income was 429 million yen (vs. operating loss of 192 million yen in the same period of the previous fiscal year).
(GAKUEN business)
Sooner than expected demand at current customers for replacing the current series of university program products with the new GAKUEN RX and GAKUEN UNIVERSAL PASSPORT RX series, which have high profit margins, contributed to the performance of this business. In addition, there was faster than expected progress with sales of these two new series to new customers. An increase in the volume of end user computing (EUC: individualized contracted development of related systems) orders associated with the use of these two new series also contributed to higher profitability in this business. In previous fiscal years, sales for support services for the use of new software and other work in progress was recognized when the final ap proval of customers was received. Due to the application of the Accounting Standard for Revenue Recognition beginning with the current fiscal year, this revenue is recognized based on progress with fulfilling performance obligations involving individual projects. As a result, net sales in this business totaled 1,721 million yen (up 35.9% year on year) and the operating income was 498 million yen (up 185.8% year on year).
(System sales business)
Delays in the procurement of IT equipment due to the global semiconductor shortage caused sales of IT equipment to universities, the main activity of this business, to decline. As a result, net sales totaled 593 million yen (down 15.0% year on year) and operating income was 2 million yen (down 97.1% year on year).
2
Japan System Techniques Co., Ltd. (4323) Financial Results for the Second Quarter of FY3/22
(Medical big data business)
Sales of automated inspection services for health insurance claims started to recover in the current fiscal year following the downturn in one year earlier when the number of people using healthcare institutions decreased due to the pandemic. There were also improvements in the performance of analysis services, services for the notification of the cost of medical care, cloud services for managing welfare public assistance version of health insurance claims, support services for health insurance organizations and other highly profitable businesses. These positive factors increased profitability of this business. In previous fiscal years, sales for a range of services and other work in progress was recognized when the final approval of customers was received. Due to the application of the Accounting Standard for Revenue Recognition beginning with the current fiscal year, this revenue is recognized based on progress with fulfilling performance obligations involving individual projects. As a result, net sales in this business totaled 740 million yen (up 38.6% year on year) and operating income was 61 million yen (vs. operating loss of 36 million yen in the same period of the previous fiscal year).
(2) Explanation of Financial Position
1) Balance sheet
Current assets at the end of the second quarter were 11,102 million yen, up 1,406 million yen from the end of the previous fiscal year. This was mainly due to an increase in the collection of accounts receivable -trade linked to performance, and an increase in cash and deposits resulting from the issuance of new shares through the exercise of share acquisition rights and the disposal of treasury shares. Non-current assets were 3,110 million yen, down 55 million yen from the end of the previous fiscal year.
Current liabilities at the end of the second quarter were 3,916 million yen, down 471 million yen from the end of the previous fiscal year. This was mainly due to repayments of short-term borrowings. Non-current liabilities were 1,648 million yen, up 25 million yen from the end of the previous fiscal year.
Net assets at the end of the second quarter were 8,647 million yen, up 1,796 million yen from the end of the previous fiscal year. This was mainly due to exercise of share acquisition rights.
Net assets increased as retained earnings were 81 million yen higher at the beginning of the fiscal year due to the application of the Accounting Standard for Revenue Recognition.
2) Cash flows
Cash and cash equivalents increased 1,406 million yen from 4,853 million yen at the beginning of the current fiscal year to 6,259 million yen at the end of the first half of the current fiscal year.
Cash flows by category were as follows.
Net cash provided by operating activities totaled 838 million yen, a decrease of 432 million yen from 1,271 million yen provided in the same period of the previous fiscal year. This decrease was mainly due to increase s in inventories and contract liabilities, and a decrease in proceeds from the collection of trade receivables .
Net cash used in investing activities totaled 57 million yen, an increase of 9 million yen from 66 million yen used in the same period of the previous fiscal year. This was due to a decrease in purchase of investment securities , an increase in proceeds from sales of investment securities and an increase in loan advances.
Net cash provided by financing activities totaled 592 million yen, an increase of 1,145 million yen from 552 million yen used in the same period of the previous fiscal year. This was due to increases in proceeds from issuance of shares and proceeds from disposal of treasury shares.
(3) Explanation of Consolidated Forecasts and Other Forward -looking Statements
There are no revisions to the May 13, 2021 forecasts for the fiscal year ending March 31, 2022: net sales of 19,500 million yen (up 3.8% year on year), operating income of 1,330 million yen (up 9.3% year on year), ordinary income of 1,360 million yen (up 3.8% year on year), and profit attributable to owners of parent of 820 million yen (up 41.7% year on year).
3
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Japan System Techniques Co. Ltd. published this content on 17 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 November 2021 02:16:01 UTC.