Keyware Solutions Inc.
3799・Standard Market・Information & Communication
System Development Business
The largest segment in the Group. Centers on contract software development for social infrastructure, transportation, healthcare, and other sectors.
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales | ¥13,439 million | ¥11,911 million | ↑ |
| Operating income | ¥476 million | ¥324 million | ↑ |
| Orders received | ¥12,766 million | ¥12,524 million | ↑ |
| Order backlog | ¥3,044 million | ¥3,716 million | ↓ |
Business Details
This business undertakes contract development of the whole or part of the software required to build computer systems. In addition to the parent company, the operating entities include the regional subsidiaries Keyware Hokkaido, Tohoku, West Japan, and Kyushu, as well as Cleva Systems Co., Ltd. Its strengths lie in systemization for specialized business fields, including infrastructure construction for social infrastructure companies, revenue and fare management systems for telecom carriers and major railway transport companies, nationwide social infrastructure network monitoring and control systems, and medical solutions (such as the pathology examination system Medlas-BR). Orders are received both as prime contractor and subcontractor. This core segment accounts for approximately 59% of the Group's consolidated net sales.
Recent Overview
Net sales and operating income both increased substantially due to expansion of transportation, medical, and public sector projects.
In FY2026 (ending March 2026), net sales rose sharply to ¥13,439 million (up ¥1,528 million, +12.8% year on year) and operating income to ¥476 million (up ¥152 million, +47.1% year on year). In addition to expansion of projects in the transportation and medical sectors, public sector and IoT-related development, for which large orders were received in the prior period, progressed smoothly. On the other hand, orders received increased only slightly to ¥12,766 million (+1.9% year on year), and the order backlog declined to ¥3,044 million (down 18.1% year on year). Keyware Medical Co., Ltd., a dedicated subsidiary for the medical solutions business, was established in January 2026, with operations commencing from April 2026.
Key Products
Growth Drivers
- Increase in net sales due to expansion of transportation, medical, and IoT-related projects (+12.8% year on year)
- Enhanced value provided through the establishment of a dedicated subsidiary (Keyware Medical) for the medical solutions business
- Strengthened collaboration with the three capital and business alliance partners: JR East Information Systems, Kanematsu Electronics, and Canon Marketing Japan
- Expansion of the sales foundation in the Tohoku region through a capital and business alliance with the Bank of Iwate (concluded September 2025)
- Strengthening DX-related (IoT, cloud) technological capabilities and improving operational efficiency and productivity through product and AI utilization
- Strengthening of the organizational structure in the cybersecurity field (training of engineers and sales personnel)
Risks
- Risk of a decline following large-scale public sector orders received in the prior period (orders declined in the current period in the public sector, where a large order was received in the prior period)
- Impact on future net sales due to the decline in order backlog (down 18.1% year on year)
- Risk of a decline following the completion of large-scale medical-related projects
- Risk of unprofitable projects occurring (there is a track record of recording provisions for losses on order backlog)
- Impact on the development structure due to a shortage of IT personnel and difficulty securing engineers
- Risk of dependence on prime contractors within the mixed prime/subcontractor structure
Last updated: June 24, 2026