Notice Concerning the Revision of Earnings Forecasts

KLab Inc. revised its mid-term earnings forecast for the first half of 2014, shifting from a 597 million yen net loss in 2013 to a projected net profit of 541 million yen.

Operating income projections were increased by 222.2% and net income projections by 283.7% compared to previous guidance for the period ending June 30, 2014.

Revenue expectations for the mid-term period were raised to 9.58 billion yen, a 7.4% increase over the company's prior forecast.

The financial turnaround was primarily driven by strong sales performance from 'Love Live! School Idol Festival' (domestic and international) and 'Celestial Craft Fleet'.

Profitability was bolstered by disciplined cost management, specifically the reduction of outsourcing and personnel expenditures beyond initial targets.

Management improved margins by reallocating marketing resources away from underperforming titles that failed to meet benchmarks for player persistence and average revenue per user.

Earnings per share forecasts improved significantly, moving from a projected loss of 4.15 yen to a profit of 16.40 yen.