MEDICAL SYSTEM NETWORK Co., Ltd., First Half Ordinary Profit Decreases by 40%, July-September Ordinary Profit Decreases by 57%

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Fri Nov 8, 2024 3:30 pm JST Earnings

4350 MEDICAL SYSTEM NETWORK Co., Ltd. 【J-GAAP】

Earnings Report

MEDICAL SYSTEM NETWORK Co., Ltd. <4350> [TSE-S] announced its financial results after the market closed on November 8th (15:30). The consolidated ordinary profit for the cumulative second quarter of the fiscal year ending March 2025 (April to September) dropped by 39.7% from the same period last year to 1.02 billion yen. The progress rate against the 3 billion yen full-year plan was 34.0%, also falling below the five-year average of 44.7%.

Based on the first-half performance announced by the company and the unchanged full-year plan, our calculation indicates that the consolidated ordinary profit for the October to March period (second half) is expected to decrease by 7.2% from the same period last year to 1.98 billion yen.

In the most recent three-month period, from July to September (2Q), the consolidated ordinary profit significantly dropped to 552 million yen, a 56.9% decrease compared to the same period last year. The operating profit margin worsened from 4.4% 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
Apr - Sep, 2022	53,340	1,099	1,242	502	16.6	37.0	Nov 4, 2022	J-GAAP
Apr - Sep, 2023	56,461	1,712	1,692	861	28.5	44.2	Nov 7, 2023	J-GAAP
Apr - Sep, 2024	59,761	1,027	1,020	207	7.1	34.0	Nov 8, 2024	J-GAAP
YoY	+5.8%	-40.0%	-39.7%	-76.0%	-75.2%

First Half Results vs. Previous Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Apr - Sep, 2024 Guidance	59,761	1,027	1,020	207	7.1	6	Oct 31, 2024	J-GAAP
Apr - Sep, 2024 Results	59,761	1,027	1,020	207	7.1	6	Nov 8, 2024	J-GAAP
Revision Rate	0.0%	0.0%	0.0%	0.0%	0.0%

Current Period Guidance

Second Half Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Oct - Mar, 2023	58,900	2,120	2,133	999	33.2	6	May 10, 2024	J-GAAP
Oct - Mar, 2024 Guidance	62,239	1,973	1,980	1,043	35.7	6	Oct 31, 2024	J-GAAP
YoY	+5.7%	-6.9%	-7.2%	+4.4%	+7.4%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	109,551	3,163	3,355	1,610	53.4	12	May 9, 2023	J-GAAP
Mar, 2024	115,361	3,832	3,825	1,860	61.9	12	May 10, 2024	J-GAAP
Mar, 2025 Guidance	122,000	3,000	3,000	1,250	42.8	12	Oct 31, 2024	J-GAAP
YoY	+5.8%	-21.7%	-21.6%	-32.8%	-30.9%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jul - Sep, 2023	28,805	1,261	1,282	713	23.6	4.4	Nov 7, 2023	J-GAAP
Oct - Dec, 2023	29,714	1,357	1,352	832	27.6	4.6	Feb 6, 2024	J-GAAP
Jan - Mar, 2024	29,186	763	781	167	5.6	2.6	May 10, 2024	J-GAAP
Apr - Jun, 2024	29,419	468	468	170	5.9	1.6	Aug 7, 2024	J-GAAP
Jul - Sep, 2024	30,342	559	552	37	1.3	1.8	Nov 8, 2024	J-GAAP
YoY	+5.3%	-55.7%	-56.9%	-94.8%	-94.6%