Serverworks, The Current Fiscal Year Ordinary Profit Revised Upward by 2.0 times

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Tue Jan 14, 2025 11:30 am JST Earnings

4434 Serverworks Co.,Ltd. 【J-GAAP】

Earnings Report

Serverworks Co.,Ltd. <4434> [TSE Std] announced its financial results at noon (11:30) on January 14th. The consolidated ordinary profit for the cumulative third quarter of the fiscal year ending February 2025 (March to November) increased 3.7% from the same period last year, reaching 0.84 billion yen.

In addition, the full-year consolidated ordinary profit has been revised upward 2.0 times, from the previous forecast of 0.49 billion yen to 0.99 billion yen (compared to 1.03 billion yen in the previous period), and the declining rate is expected to decrease from 52.3% to 3.5%.

Based on the full-year plan announced by the company after the upward revision, our estimate of the consolidated ordinary profit for the September to February period (2H) has been revised upward from an expected loss of 0.08 billion yen to a profit of 0.41 billion yen (compared to a profit of 0.58 billion yen in the same period of the previous year), turning to a profit.

In the most recent three-month period, from September to November (3Q), the consolidated ordinary profit decreased to 0.27 billion yen, a 27.3% decrease compared to the same period last year. The operating profit margin worsened from 4.3% in the same period last year to 2.5%.

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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
Mar - Nov, 2022	11,961	489	565	433	56.0	90.5	Jan 13, 2023	J-GAAP
Mar - Nov, 2023	19,802	719	819	506	64.9	79.4	Jan 12, 2024	J-GAAP
Mar - Nov, 2024	26,196	824	849	505	64.4	85.2	Jan 14, 2025	J-GAAP
YoY	+32.3%	+14.6%	+3.7%	-0.2%	-0.8%

Guidance Update

Second Half Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Sep - Feb, 2024 Prev	16,101	66	-85	-101	-12.8	0	Oct 15, 2024	J-GAAP
Sep - Feb, 2024 New	18,269	392	419	229	29.1	0	Jan 14, 2025	J-GAAP
Revision Rate	+13.5%	+493.9%	－	－	－

Full Year Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Feb, 2025 Prev	33,392	668	492	254	32.2	0	Apr 12, 2024	J-GAAP
Feb, 2025 New	35,560	994	996	584	74.1	0	Jan 14, 2025	J-GAAP
Revision Rate	+6.5%	+48.8%	+102.4%	+129.9%	+129.9%

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	18,269	392	419	229	29.1	0	Jan 14, 2025	J-GAAP
YoY	+21.6%	-20.6%	-28.6%	-43.9%	-44.4%

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	35,560	994	996	584	74.1	0	Jan 14, 2025	J-GAAP
YoY	+29.3%	+10.8%	-3.5%	-8.5%	-9.4%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
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
Sep - Nov, 2024	8,905	222	272	150	19.1	2.5	Jan 14, 2025	J-GAAP
YoY	+21.6%	-29.7%	-27.3%	-45.7%	-46.0%