Kyoritsu Computer & Communication Co.,Ltd.

Business Details

Provides ICT solutions spanning three fields—IT Infrastructure Solutions, Information Content Solutions, and Information Utilization Solutions—by integrating the products and services of five major partners: NTT Docomo, NEC, OBC, Microsoft Japan, and Cybozu, and delivering them on a one-stop basis. Targeting small and medium-sized enterprises and government agencies, the business covers a wide range from communications infrastructure construction and maintenance, core business systems, and cloud service implementation support to information utilization education, and aims to expand subscription-type and recurring revenue.

Recent Overview

Achieved substantial revenue and profit growth, with net sales up 24.5% year on year, driven by demand related to the end of Windows 10 and Bugyo support

In FY2026 (ending March 2026), the Solutions Business achieved substantial growth in both revenue and profit, with net sales of ¥2,071 million (up 24.5% year on year) and segment profit of ¥608 million (up 26.0% year on year). Replacement demand increased due to the end of support for Windows 10 and Bugyo software and the aging of existing customers' PBX systems, and network infrastructure improvement and Bugyo cloud migration progressed steadily. In addition, cross-selling activities were invigorated by proposals integrating telecommunications, networks, and mobile triggered by PBX replacement, and the generation of new projects through collaboration with partner companies also contributed to business expansion. Net sales to T-Gaia Corporation, a major customer, increased to ¥2,082 million (from ¥1,900 million in the prior period).

Key Products

Growth Drivers

• Continued capture of demand for cloud migration and PC infrastructure renewal arising from the end of support for Bugyo software and Windows 10
• Sophistication of implementation support in the AI and cloud fields and expansion of solutions that cross-integrate partner companies' products and services
• Invigoration of cross-selling activities through the integration of telecommunications, network, and mobile solutions triggered by PBX replacement
• Steady growth in corporate ICT investment demand amid rising DX needs (in response to labor shortages and operational efficiency needs)
• Generation of new projects against the backdrop of expanding network security demand, and customer development through events and seminars leveraging the Kyoritsu Information Community
• Building a stable revenue base through the expansion of subscription-type and recurring revenue

Risks

• Sluggish hardware sales growth due to shrinking new installation projects for on-premises PBX and business servers
• Risk of growth deceleration after the one-time replacement demand related to the end of support for Windows 10 and Bugyo runs its course
• Risk of temporary revenue decline as cloud migration progresses (revenue smoothing due to subscription conversion)
• Impact on earnings from changes in major partner companies' product/service strategies or revisions to sales terms
• Risk of reduced ICT investment by small and medium-sized enterprises (due to downturns in corporate earnings from economic deterioration or price increases)
• Risk of difficulty maintaining proposal, implementation, and operational support structures due to ICT talent shortages