Digital Media Professionals Inc.
3652・Growth Market・Information & Communication
Business
Digital Media Professionals Inc. is a semiconductor IP company whose purpose is "Making the Image Intelligent," with its core business centered on the development and licensing of graphics IP cores and IP cores for AI and deep learning. Its main customers are semiconductor manufacturers and final product manufacturers in the game console, automotive, home appliance, and amusement equipment sectors. The business is organized around three pillars: IP core licensing, products (LSI, AI semiconductors, vision systems, etc.), and Professional Services, with the amusement-oriented graphics LSI "RS1 (Image Processing Semiconductor)" currently serving as the main source of revenue. The company positions the next-generation edge AI semiconductor "Di1 (Next-Generation Edge AI Semiconductor)" as a medium- to long-term growth driver, and is pursuing global expansion including the Indian market. Founded in 2002, the company is listed on the Growth Market of the Tokyo Stock Exchange.
Business Model
In the IP core licensing business, the company builds up recurring revenue through running royalties linked to product shipment volumes and SaaS-type subscriptions, in addition to initial license revenue. In the products business, the company outsources manufacturing of LSIs equipped with its proprietary IP and sells them, with "RS1 (Image Processing Semiconductor)" for amusement applications accounting for the majority of sales. In the Professional Services business, the company undertakes contract work for customers' SoC design optimization and AI algorithm development, providing consistent support from PoC through to mass production transition, thereby maximizing LTV.
Company Strengths
Since its establishment in 2002, the company has continuously developed proprietary technology in-house, starting with the 3D graphics IP core "PICA200," followed by the deep learning image recognition engine "ZIA," and the next-generation edge AI SoC "Di1." Its ability to handle algorithms, software, and hardware development consistently in-house serves as a key differentiator from competitors, enabling it to provide added value across the entire process from customer planning through mass production.
The image processing semiconductor "RS1," jointly developed with Bandai Namco Sevens, continues to be shipped in mass production for pachislot and pachinko machines. In FY2026 (ending March 2026), sales in the amusement field amounted to ¥1,951 million, accounting for approximately 80% of the company's total sales. This stable revenue base underpins strategic investment in growth areas.
The company entered into capital and business alliances with Lester Co., Ltd. (formerly UKC Holdings) in 2014 and with Yamaha Motor Co., Ltd. in 2019. Lester provides a broad domestic and international sales channel, and sales to Lester in FY2026 (ending March 2026) totaled ¥1,952 million (80.2% of total company sales). With Yamaha Motor, the company is promoting collaboration on applying AI technology in the mobility and robotics fields.
ENVALITH's Perspective
Performance Trend
Revenue expanded from ¥1,668 million in FY2022 (ending March 2022) to ¥3,016 million in FY2024 (ending March 2024), plateaued at ¥3,078 million in FY2025 (ending March 2025), then declined sharply to ¥2,432 million in FY2026 (ending March 2026). Operating profit peaked at ¥329 million in FY2024 (ending March 2024), fell to ¥266 million in FY2025 (ending March 2025), and turned negative at ¥(311) million in FY2026 (ending March 2026). The main causes were a significant decline in Products business revenue due to external factors in the amusement field (sluggish pachislot inspection approval rates) and an increase in SG&A expenses (from ¥1,059 million to ¥1,221 million year on year), including ¥301 million in development expenses for “Di1.” On a quarterly basis, the fourth quarter (January–March 2026) recorded an operating profit of ¥78 million, suggesting signs of recovery from the second half. Cash and cash equivalents decreased by ¥714 million during the period to ¥1,797 million.
Growth Strategy
Composite growth through Di1 mass production, amusement business recovery, and expansion of robotics/FA businesses
Advancing product development through strategic partnerships with Sparsh CCTV (security) and ideaForge (drones) in the Indian market. Progress is being made in the domestic and overseas rollout of ANPR solutions and in customer evaluations for surveillance cameras, drones, and mobility applications. Sales activities in Asia and North America are accelerating mass-production adoption.
Working to recover mass-production shipments of RS1 for pachislot and pachinko machines, while increasing added value by actively capturing adjacent business opportunities. Market research and product planning for next-generation products are being pursued in parallel to maintain and strengthen a stable revenue base.
Advancing the transition from PoC to mass-production system products and standardized packaging. Expanding the business through the phase transition of object detection systems for semiconductor manufacturing equipment to mass production, progress in negotiations for the Cambrian Vision System, and the development and delivery of high-value-added solutions through Di1 integration.
In the FA business, which launched in April 2025, the company primarily offers FA Products (AMR Units & Related Components). Sales expansion is being promoted to manufacturing and logistics customers as well as robot manufacturers, aiming for synergies with the robotics/safety business.
The behavior recognition AI platform, which combines LLM with proprietary vision AI technology, began to be offered in September 2025. Field operation of a skateboarder detection system at public facilities has already started, and expansion into the safety management market for public and commercial facilities, construction sites, and other settings is being pursued.
Last updated: July 19, 2026