SOLXYZ Co., Ltd.
4284・Standard Market・Information & Communication
Software Development Business
The Group's largest segment, centered on SI/contract development for the financial, infrastructure, and telecommunications sectors
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales to external customers (Q1 cumulative) | ¥3,331 million | ¥3,320 million | ↑ |
| Segment profit (Q1 cumulative) | ¥244 million | ¥185 million | ↑ |
| Year-on-year sales growth rate | +0.3% | — | — |
Business Details
This segment's main businesses are SI/contract development, outsourcing, and information equipment sales and maintenance for the financial industry (securities, banking, and market systems), government agencies, and the information and telecommunications industry. It comprises five companies in total: the Company itself, plus F.F.SOL Co., Ltd. (specializing in banking), Corenext Co., Ltd. (for securities buy-side), ASWARE Co., Ltd. (specializing in ICT infrastructure), and F Co., Ltd. (specializing in market front/middle systems). This is the Group's core segment, accounting for approximately 76% of consolidated net sales.
Recent Overview
Although a large-scale equipment sales project fell off, development demand remained solid, and segment profit improved significantly year on year
In the first quarter of FY2026 (ending December 2026) (January to March 2026), net sales to external customers in the Software Development Business were ¥3,331 million (+0.3% year on year), a marginal increase. While the drop-off of a large-scale equipment sales project within the Software Development Business was a factor pushing down sales, this was offset by increased sales from development projects for banking, infrastructure/manufacturing, and telecommunications clients. Segment profit improved significantly to ¥244 million from ¥185 million in the same quarter of the previous year, reflecting improved profitability.
Key Products
Growth Drivers
- Continued solid demand for development projects for banking, infrastructure/manufacturing, and telecommunications clients
- Expansion of IT investment in the financial industry driven by generative AI adoption and DX demand
- Consolidated contribution from F Co., Ltd. (market front/middle systems)
- Strengthened price competitiveness and securing of prime contractor projects through use of offshore/nearshore development
- Stable revenue base underpinned by order backlog as a leading indicator
Risks
- Constraints on development capacity due to chronic IT talent shortages (a structural issue across the industry)
- Risk of sales fluctuation due to temporary factors such as the drop-off of large-scale equipment sales projects
- Risk of sales concentration with Fujitsu Limited (prior period results: 10.2% of net sales, ¥1,769 million)
- Pressure on profit margins from rising labor and outsourcing costs (increasing trend in SG&A items such as commission fees)
- Risk of structural change in demand for traditional SI services due to the spread of cloud computing and generative AI
- Burden of goodwill amortization associated with M&A-related subsidiary consolidation (Q1 goodwill amortization of ¥10 million)
Last updated: March 25, 2026