GENETEC CORPORATION

Business Details

Composed of two pillars: embedded software development for the mobility field (automobiles, railways, etc.) and digital appliances/industrial equipment, and system development that integrates software and hardware. Moason Japan (digital musical instrument software, industrial robot control, broadcasting station-related development, etc.), consolidated in April 2025, has been added, significantly expanding the business scope. This is the core segment, accounting for over 60% of Group net sales.

Recent Overview

Net sales up 42.8% due to the consolidation effect of Moason Japan, while profit margin declined

In FY2026 (ending March 2026), the addition of Moason Japan (software development net sales of ¥1,769 million), consolidated in April 2025, was the main driver of a significant increase in segment net sales to ¥6,798 million (up 42.8% year on year). Existing software development also grew to ¥3,416 million (up 5.5% year on year) due to increased projects for automakers and Tier 1 companies. System development also increased to ¥1,612 million (up 5.9% year on year) due to increased FPGA development and new projects for industrial equipment. On the other hand, system development profit declined year on year due to rising procurement prices for hardware components, and the segment profit margin fell to 22.1% (from 26.4% in the prior year). For FY2027 (ending March 2027), software development is expected to offset the impact of decreased revenue from production adjustments by major system development customers, with net sales forecast at ¥7,070 million (up 4.0% year on year).

Key Products

Growth Drivers

• Expansion of business scope through the consolidation of Moason Japan (digital musical instrument software, industrial robot control, broadcasting station-related development, etc.)
• Increased direct transactions with automakers and Tier 1 companies, and focus on high-value-added in-vehicle projects such as integrated ECUs
• Promotion of development proposals in growth markets such as SDV (software-defined vehicles) and ADAS
• Acquisition of new FPGA development projects and integrated software/hardware development projects for industrial equipment
• Development of new customers centered on edge computing and FPGA (a priority initiative of the Medium-Term Management Plan 2026-2028)
• Expansion of business scope and strengthening of profitability through a shift change in development fields

Risks

• Risk of deteriorating profit margins in system development due to rising procurement prices for hardware components
• Risk of decreased revenue due to production adjustments by major system development customers (expected to materialize in FY2027, ending March 2027)
• Risk of impact on the automotive industry and suppression of development investment due to U.S. trade policy (tariff measures)
• Risk of deteriorating profitability due to excess development man-hours on a per-project basis
• Difficulty in recruiting and securing IT engineers needed to handle high-value-added projects
• Increased amortization burden of goodwill and customer-related assets due to the Moason Japan integration