VRAIN Solution,Inc.

Business Details

Under the mission of "transforming manufacturing and changing the world," the company provides two solutions utilizing AI and IoT technologies for the manufacturing industry: (1) "AI Systems," centered on the AI visual inspection system "Phoenix Vision/Eye," and (2) "DX Consulting," which supports the automation and labor-saving of manufacturing processes. The cumulative number of client companies has expanded to 358, and business continues to grow steadily, including the adoption of AI visual and 3D shape measurement inspection systems by a major semiconductor ceramics manufacturer.

Recent Overview

Revenue surged 231.5% year on year to ¥648 million, and the operating loss improved significantly

In the first quarter of FY2027 (ending February 2027) (March to May 2026), the company achieved revenue of ¥648 million (up 231.5% year on year). While focusing on delivering the order backlog from the end of the prior fiscal year, business continued to expand steadily, including the adoption of AI visual and 3D shape measurement inspection systems by a major semiconductor ceramics manufacturer. The cumulative number of client companies increased to 358, and the order backlog grew to ¥1,386 million. Preparations to open a Kanazawa sales office and Nagoya factory are also underway. Following the full repayment of ¥400 million in short-term borrowings, the equity ratio improved to 82.5%. There is no change to the full-year earnings forecast (revenue of ¥4,823 million, operating profit of ¥1,449 million).

Key Products

Growth Drivers

• Continued expansion of DX investment demand in the manufacturing industry against a backdrop of labor shortages and an aging, shrinking population
• Increase in repeat orders from existing customers (expansion to multiple lines within the same factory and horizontal deployment to other factories)
• Strengthening of the revenue base through expansion of the cumulative number of client companies to 358 and accumulation of revenue from continuing customers
• Expansion of sales reach into regional manufacturing and production capacity through preparations to open a Kanazawa sales office and Nagoya factory
• Expansion into the internal inspection field and broadening of the solution domain through the new product "PX-1000N"
• Continued acquisition of large-scale projects, including adoption of AI visual and 3D shape measurement inspection systems by a major semiconductor ceramics manufacturer
• Improved visibility of future revenue recognition due to the accumulation of an order backlog of ¥1,386 million

Risks

• Operating loss (-¥31 million) continued in Q1, posing a risk that full-year profitability depends on revenue concentration in the latter half
• Trade receivables and contract assets remain at a high level of ¥1,224 million, posing a cash flow risk from delayed collection
• Risk of revenue concentration on specific customers (in the prior fiscal year, Tokai Tsukemono Co., Ltd. accounted for 11.6% of revenue)
• Risk of cost ratio deterioration due to rising material cost ratio in AI systems (material cost as a proportion of manufacturing cost: 71.0% in the prior fiscal year)
• Risk of further increases in energy prices, raw material costs, and labor costs due to escalating tensions in the Middle East
• Risk that recruitment and development of talented sales personnel and engineers becomes a rate-limiting factor for growth
• Selling, general and administrative expenses increased to ¥527 million (from ¥373 million in the same period prior year), posing a risk of profit deterioration if revenue growth cannot absorb the increase in expenses
• Overseas test marketing is still at an early stage, with no established track record or profitability in overseas expansion