System Integrator Corp.
3826・Standard Market・Information & Communication
Object Browser Business
High-margin proprietary product segment comprising two database development support tools
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment revenue (Q1 cumulative, FY2027 (ending February 2027)) | ¥54 million | ¥63 million (Q1 cumulative, FY2026 (ending February 2026)) | ↓ |
| Segment profit (Q1 cumulative, FY2027 (ending February 2027)) | ¥40 million | ¥46 million (Q1 cumulative, FY2026 (ending February 2026)) | ↓ |
| Segment profit margin (Q1 cumulative, FY2027 (ending February 2027)) | 74.7% | 72.3% (Q1 cumulative, FY2026 (ending February 2026)) | ↑ |
| YoY change in revenue (same quarter prior year) | -14.5% | — | ↓ |
| YoY change in segment profit (same quarter prior year) | -11.8% | — | ↓ |
Business Details
Consists of two products: the database development support tool "SI Object Browser" and the database design support tool "SI Object Browser ER". The domestic IT industry serves as the main customer base, and the segment is characterized by a high-margin structure driven by proprietary products that require no procurement. The company is strategically promoting a shift from the traditional perpetual license model to a subscription model. Note that, from the current first quarter, the "OBPM Neo"-related business has been separated out and established independently as the "Project Management Business".
Recent Overview
Revenue and profit both declined due to the transition period to subscriptions, but margin was maintained and improved
In Q1 of FY2027 (ending February 2027) (March-May 2026), revenue was ¥54 million (down 14.5% year on year) and segment profit was ¥40 million (down 11.8% year on year), representing a decline in both revenue and profit. While progress was made in the transition to the subscription model, it was not enough to offset the decline in revenue from the traditional perpetual license model. On the other hand, the profit margin improved to 74.7% from 72.3% in the same quarter of the prior year. The company views this as a temporary effect of the transition period and plans to drive upselling and new customer acquisition through complete licenses, leveraging multi-database support and patented AI features.
Key Products
Growth Drivers
- Acceleration of the shift from perpetual licenses to subscriptions through the introduction of complete subscription licenses, and the establishment of a stable, recurring revenue base
- Strengthened product competitiveness and new customer acquisition through the patented generative AI automation feature (Patent No. 7763432)
- Broad customer reach through multi-database support including Oracle, SQL Server, and PostgreSQL
- Promotion of upselling to existing customers through complete licenses
- Accumulation of stable, high-margin recurring revenue following completion of the subscription transition
Risks
- Temporary decline in perpetual license revenue accompanying the shift to subscriptions (revenue gap during the transition period)
- Intensifying price and functionality competition with competitors' database development tools
- Impact on demand for database development tools due to the spread of AI coding assistance tools (e.g., GitHub Copilot)
- Risk that investment in new development and functional enhancements will compress profit margins
- Rising costs of engineer recruitment and training due to the IT industry's labor shortage
Last updated: June 16, 2026