Serverworks Co.,Ltd., First Half Ordinary Profit Increases by 30%, Exceeds Full-Year Plan

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Tue Oct 15, 2024 3:00 pm JST Earnings

4434 Serverworks Co.,Ltd. 【J-GAAP】

Earnings Report

Serverworks Co.,Ltd. <4434> [TSE-S] announced its financial results after the market closed on October 15th (15:00). The consolidated ordinary profit for the cumulative second quarter of the fiscal year ending February 2025 (March to August) increased by 29.7% from the same period last year, reaching 577 million yen. The progress rate against the full-year plan of 492 million yen is 117.3%, already exceeding the target and also exceeding the five-year average of 46.4%.

Based on the first-half performance announced by the company and the unchanged full-year plan, our calculation indicates that the consolidated ordinary profit/loss for the September to February period (second half) is expected to turn into a loss of 85 million yen (compared to a profit of 587 million yen in the same period last year).

In the most recent three-month period, from June to August (2Q), the consolidated ordinary profit decreased to 172 million yen, a 28.0% decrease compared to the same period last year. The operating profit margin worsened from 3.6% in the same period last year to 1.8%.

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Actual Results

Accumulated Results 2nd Quarter

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Progress Rate vs. First Half	Announce	Accounting Standards
Mar - Aug, 2022	7,075	335	331	266	34.5	53.0	Oct 14, 2022	J-GAAP
Mar - Aug, 2023	12,480	403	445	230	29.6	43.1	Oct 13, 2023	J-GAAP
Mar - Aug, 2024	17,291	602	577	355	45.3	117.3	Oct 15, 2024	J-GAAP
YoY	+38.5%	+49.4%	+29.7%	+54.3%	+53.1%

First Half Results vs. Previous Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar - Aug, 2024 Guidance	ー	ー	ー	ー	－	0	Apr 12, 2024	J-GAAP
Mar - Aug, 2024 Results	17,291	602	577	355	45.3	0	Oct 15, 2024	J-GAAP
Revision Rate	－	－	－	－	－

Current Period Guidance

Second Half Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Sep - Feb, 2023	15,030	494	587	408	52.3	0	Apr 12, 2024	J-GAAP
Sep - Feb, 2024 Guidance	16,101	66	-85	-101	-12.8	0	Oct 15, 2024	J-GAAP
YoY	+7.1%	-86.6%	－	－	－

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Feb, 2023	17,295	552	624	453	58.6	0	Apr 14, 2023	J-GAAP
Feb, 2024	27,510	897	1,032	638	81.8	0	Apr 12, 2024	J-GAAP
Feb, 2025 Guidance	33,392	668	492	254	32.3	0	Apr 12, 2024	J-GAAP
YoY	+21.4%	-25.5%	-52.3%	-60.2%	-60.5%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jun - Aug, 2023	6,593	238	239	123	15.8	3.6	Oct 13, 2023	J-GAAP
Sep - Nov, 2023	7,322	316	374	276	35.4	4.3	Jan 12, 2024	J-GAAP
Dec - Feb, 2023	7,708	178	213	132	16.9	2.3	Apr 12, 2024	J-GAAP
Mar - May, 2024	8,636	443	405	277	35.4	5.1	Jul 12, 2024	J-GAAP
Jun - Aug, 2024	8,655	159	172	78	10.0	1.8	Oct 15, 2024	J-GAAP
YoY	+31.3%	-33.2%	-28.0%	-36.6%	-37.1%