SOLITON SYSTEMS K.K.
3040・Prime Market・Information & Communication
IT Security Business
Soliton Systems' core segment, accounting for approximately 94% of consolidated net sales, the cybersecurity business.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment net sales (Q1 cumulative) | ¥4,850 million | ¥4,308 million | ↑ |
| Segment profit (Q1 cumulative) | ¥1,169 million | ¥805 million | ↑ |
| Merchandise/product sales (Q1 cumulative) | ¥1,755 million | ¥1,458 million | ↑ |
| Cloud service sales (Q1 cumulative) | ¥707 million | ¥647 million | ↑ |
| Maintenance sales (Q1 cumulative) | ¥1,376 million | ¥1,361 million | ↑ |
| Service and other revenue (Q1 cumulative) | ¥1,009 million | ¥840 million | ↑ |
| Segment net sales (full year results) | ¥18,516 million | — | ↑ |
| Segment profit (full year results) | ¥3,717 million | — | ↑ |
Business Details
The company develops in-house software for information leakage prevention, authentication/access control, and telework security, and provides optimal system design proposals and operational services. Targeting a broad range of customers including government agencies, local governments, education, healthcare, defense, and critical infrastructure, the company offers its own product lineup including the domestic No. 1 share authentication appliance "NetAttest EPS" and the cloud service "Soliton OneGate." The company is riding the tailwind of the second phase of local government resilience initiatives and the second phase of the GIGA School Program, while also promoting alliances with IIJ and NEC.
Recent Overview
In Q1 of FY2026 (ending December 2026), the IT Security Business achieved a strong start with substantial growth in both sales and profit.
In Q1 (January-March) of FY2026 (ending December 2026), the IT Security Business achieved net sales of ¥4,850 million (up 12.6% year-on-year) and segment profit of ¥1,169 million (up 45.2% year-on-year). Key categories grew solidly, with merchandise/product sales reaching ¥1,755 million (up 20.3% year-on-year) and cloud service sales reaching ¥707 million (up 9.4% year-on-year). Sales of "NetAttest EPS" were strong against the backdrop of the second phase of local government resilience initiatives and the second phase of the GIGA School Program. Alliances with domestic vendors IIJ and NEC also progressed.
Key Products
Growth Drivers
- Expansion of "NetAttest EPS" sales driven by the progress of the second phase of local government resilience initiatives and the second phase of the GIGA School Program
- Expansion of sales channels and product adoption through promotion of alliances with domestic vendors IIJ and NEC
- Capturing customer demand for cloud migration through functional enhancement of the cloud service "Soliton OneGate"
- Expansion of cybersecurity investment for government agencies, local governments, and critical infrastructure (government policies to strengthen cyber security)
- Demand for security infrastructure development and renewal in the three public sectors (local governments, education, healthcare) continuing through 2030
- Expanding demand for compliance with regulations and guidelines aimed at improving security levels across private companies' entire supply chains
Risks
- Changes in the business portfolio due to the exclusion of Sound-FinTech Inc. from the scope of consolidation (sale completed in Q1 of FY2026, ending December 2026)
- Intensifying competition with global competitors (competition with major overseas players in the authentication/security market)
- Foreign exchange risk (potential increase in procurement costs due to yen depreciation)
- Risk of delayed response to technological innovation in cybersecurity products and services
- Sales concentration in the major sales partner Daiwabo Information System Co., Ltd. (approximately 14.6% of net sales in FY2025, ended December 2025)
- Change in inter-segment cost structure due to the transfer of business development costs for the Video Communication Business (remote driving field) from company-wide expenses to that segment
Last updated: March 24, 2026