Socionext, The Current Fiscal Year Ordinary Profit Revised Downward by 11%

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Fri Jan 31, 2025 3:30 pm JST Earnings

6526 Socionext Inc. 【J-GAAP】

Earnings Report

Socionext Inc. <6526> [TSE Prime] announced its financial results after the market closed on January 31st (15:30). The consolidated ordinary profit for the cumulative third quarter of the fiscal year ending March 2025 (April to December) decreased 28.0% from the same period last year to 21.1 billion yen.

In addition, the full-year consolidated ordinary profit has decreased 11.1%, from the previous forecast of 27 billion yen to 24 billion yen (compared to 37.1 billion yen in the previous period), leading to an increase in the profit decline rate from 27.3% to 35.3%.

Based on the full-year plan announced by the company after the downward revision, our estimate of the consolidated ordinary profit for the October to March period (2H) has decreased 24.3%, from the previous forecast of 12.3 billion yen to 9.36 billion yen (compared to 16.6 billion yen in the same period of the previous year), leading to an increase in the profit decline rate from 25.9% to 43.8%.

In the most recent three-month period, from October to December (3Q), the consolidated ordinary profit decreased to 6.46 billion yen, a 27.0% decrease compared to the same period last year. The operating profit margin significantly dropped from 17.6% in the same period last year to 11.1%.

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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
Apr - Dec, 2022	138,841	16,748	18,266	15,246	90.6	77.9	Jan 30, 2023	J-GAAP
Apr - Dec, 2023	169,638	27,944	29,302	20,300	115.8	78.9	Jan 30, 2024	J-GAAP
Apr - Dec, 2024	145,264	20,660	21,103	16,474	92.1	87.9	Jan 31, 2025	J-GAAP
YoY	-14.4%	-26.1%	-28.0%	-18.8%	-20.4%

Guidance Update

Second Half Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Oct - Mar, 2024 Prev	100,819	11,444	12,363	7,914	44.6	25	Oct 31, 2024	J-GAAP
Oct - Mar, 2024 New	90,819	8,444	9,363	6,414	36.1	25	Jan 31, 2025	J-GAAP
Revision Rate	-9.9%	-26.2%	-24.3%	-19.0%	-19.0%

Full Year Update

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2025 Prev	200,000	27,000	27,000	19,500	109.8	50	Apr 26, 2024	J-GAAP
Mar, 2025 New	190,000	24,000	24,000	18,000	101.4	50	Jan 31, 2025	J-GAAP
Revision Rate	-5.0%	-11.1%	-11.1%	-7.7%	-7.7%

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	104,258	16,834	16,674	10,841	61.6	25	Apr 26, 2024	J-GAAP
Oct - Mar, 2024 Guidance	90,819	8,444	9,363	6,414	36.1	25	Jan 31, 2025	J-GAAP
YoY	-12.9%	-49.8%	-43.8%	-40.8%	-41.3%

Current Period Guidance

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Adj. Dividend	Announce	Accounting Standards
Mar, 2023	192,767	21,711	23,440	19,763	117.4	42	Apr 28, 2023	J-GAAP
Mar, 2024	221,246	35,510	37,122	26,134	148.4	48	Apr 26, 2024	J-GAAP
Mar, 2025 Guidance	190,000	24,000	24,000	18,000	101.4	50	Jan 31, 2025	J-GAAP
YoY	-14.1%	-32.4%	-35.3%	-31.1%	-31.7%

Quarterly Results

Fiscal Year	Revenue	Operating Profit	Ordinary Profit	Net Profit	Adj. EPS	Operating Profit Margin	Announce	Accounting Standards
Oct - Dec, 2023	52,650	9,268	8,854	5,007	28.6	17.6	Jan 30, 2024	J-GAAP
Jan - Mar, 2024	51,608	7,566	7,820	5,834	33.1	14.7	Apr 26, 2024	J-GAAP
Apr - Jun, 2024	52,783	10,265	10,808	7,574	42.3	19.4	Jul 31, 2024	J-GAAP
Jul - Sep, 2024	46,398	5,291	3,829	4,012	22.4	11.4	Oct 31, 2024	J-GAAP
Oct - Dec, 2024	46,083	5,104	6,466	4,888	27.3	11.1	Jan 31, 2025	J-GAAP
YoY	-12.5%	-44.9%	-27.0%	-2.4%	-4.3%