SOLITON SYSTEMS K.K., The Current Fiscal Year Ordinary Profit Revised Downward to an Unexpected 26% Decrease

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Thu Nov 14, 2024 3:45 pm JST Earnings

3040 SOLITON SYSTEMS K.K. 【J-GAAP】

Earnings Report

SOLITON SYSTEMS K.K. <3040> [TSE-P] announced its financial results after the market closed on November 14th (15:45). The consolidated ordinary profit for the cumulative third quarter of the fiscal year ending December 2024 (January to September) dropped by 45.3% from the same period last year to 1.07 billion yen.

In addition, the full-year consolidated ordinary profit has downwardly by 26.3%, from the previous forecast of 2.81 billion yen to 2.07 billion yen (compared to 2.8 billion yen in the previous period). This changes the outlook from an anticipated profit increase to a projection of a 26.3% decrease in profit.

Based on the full-year plan announced by the company after the downward revision, our estimate of the consolidated ordinary profit for the July to December period (second half) has downwardly by 37.4%, from the previous forecast of 1.97 billion yen to 1.23 billion yen (compared to 1.71 billion yen in the same period of the previous year). This changes the outlook from an anticipated profit increase to a projection of a 28.0% decrease in profit.

In the most recent three-month period, from July to September (3Q), the consolidated ordinary profit significantly dropped to 241 million yen, a 72.4% decrease compared to the same period last year. The operating profit margin significantly dropped from 15.6% in the same period last year to 8.4%.

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Actual Results

Accumulated Results 3rd Quarter

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Progress Rate vs. First Half	Announce	Accounting Standards
Jan - Sep, 2022	14,487	1,194	1,395	1,010	54.6	63.3	Nov 4, 2022	J-GAAP
Jan - Sep, 2023	13,677	1,687	1,964	1,315	71.0	69.9	Nov 10, 2023	J-GAAP
Jan - Sep, 2024	13,244	1,041	1,074	725	39.2	51.9	Nov 14, 2024	J-GAAP
YoY	-3.2%	-38.3%	-45.3%	-44.9%	-44.9%

Guidance Update

Second Half Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Jul - Dec, 2024 Prev	11,458	2,223	1,977	1,355	73.1	39	Oct 1, 2024	J-GAAP
Jul - Dec, 2024 New	9,858	1,353	1,237	845	45.6	39	Nov 14, 2024	J-GAAP
Revision Rate	-14.0%	-39.1%	-37.4%	-37.6%	-37.6%

Full Year Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Dec, 2024 Prev	20,000	2,870	2,810	1,940	104.7	52	Oct 1, 2024	J-GAAP
Dec, 2024 New	18,400	2,000	2,070	1,430	77.1	52	Nov 14, 2024	J-GAAP
Revision Rate	-8.0%	-30.3%	-26.3%	-26.3%	-26.3%

Current Period Guidance

Second Half Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Jul - Dec, 2023	10,258	1,682	1,718	1,207	65.2	14	Feb 14, 2024	J-GAAP
Jul - Dec, 2024 Guidance	9,858	1,353	1,237	845	45.6	39	Nov 14, 2024	J-GAAP
YoY	-3.9%	-19.6%	-28.0%	-30.0%	-30.1%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Dec, 2022	19,757	2,036	2,203	1,587	85.7	16	Feb 10, 2023	J-GAAP
Dec, 2023	19,058	2,608	2,809	1,936	104.6	24	Feb 14, 2024	J-GAAP
Dec, 2024 Guidance	18,400	2,000	2,070	1,430	77.1	52	Nov 14, 2024	J-GAAP
YoY	-3.5%	-23.3%	-26.3%	-26.1%	-26.2%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Jul - Sep, 2023	4,877	761	873	586	31.7	15.6	Nov 10, 2023	J-GAAP
Oct - Dec, 2023	5,381	921	845	621	33.5	17.1	Feb 14, 2024	J-GAAP
Jan - Mar, 2024	4,575	489	570	391	21.1	10.7	May 10, 2024	J-GAAP
Apr - Jun, 2024	3,967	158	263	194	10.5	4.0	Aug 9, 2024	J-GAAP
Jul - Sep, 2024	4,702	394	241	140	7.6	8.4	Nov 14, 2024	J-GAAP
YoY	-3.6%	-48.2%	-72.4%	-76.1%	-76.1%