Nippon Ichi Software Q1 2012 Financial Results

Key insights

7 takeaways

01
Nippon Ichi Software achieved 553.1 million yen in net sales for Q1 2012, marking a 161.7% increase compared to the same period in the previous year.See it on page 3
02
The company shifted toward profitability with an operating profit of 9.3 million yen and an ordinary profit of 1.7 million yen, reversing losses from the prior year's first quarter.See it on page 2
03
Despite operational improvements, the company recorded a quarterly net loss of 30.3 million yen, an improvement over the 41.7 million yen loss reported in Q1 2011.See it on page 10
04
The package software segment was the primary revenue driver at 425.4 million yen, fueled by releases such as 'Disgaea 3: Absence of Detention' and 'Atelier Meruru'.See it on page 3
05
The online business segment contributed 72.0 million yen in sales through smartphone application distribution and PlayStation Network content.See it on page 4
06
Total assets reached 2.08 billion yen as the company increased investment in work-in-progress inventory to support upcoming 20th-anniversary software titles.See it on page 9
07
Licensing and other business segments provided steady revenue through social game collaborations and contract development work.See it on page 4

Summary

Nippon Ichi Software’s financial results for the first quarter of the fiscal year ending March 31, 2013, reflect a period of significant revenue growth and a transition toward profitability. Covering the three-month period from April 1, 2012, to June 30, 2012, the report highlights a successful expansion in sales compared to the same period in the previous year, driven by active development of 20th-anniversary titles and diversified business operations across package, online, and licensing segments.

The company reported a substantial increase in net sales to 553.1 million yen, representing a 161.7% increase over the previous year's first quarter. This growth enabled the company to achieve an operating profit of 9.3 million yen and an ordinary profit of 1.7 million yen, a marked improvement from the operating and ordinary losses recorded in the same period of the prior year. Despite these gains, the company still reported a quarterly net loss of 30.3 million yen, though this was an improvement over the 41.7 million yen loss sustained in the previous year.

Segment performance was led by the package business, which generated 425.4 million yen in sales through the release of titles such as Disgaea 3: Absence of Detention and Atelier Meruru. The online business contributed 72.0 million yen in sales, bolstered by smartphone application distribution and PlayStation Network content, while the licensing and other business segments provided steady revenue streams through social game collaborations and contract development work.

Financially, the company maintained a stable position with total assets reaching 2.08 billion yen. While cash and deposits saw a slight decrease, the company increased its investment in work-in-progress inventory to support upcoming software releases. The report, which underwent a quarterly review by Azusa & Co., confirms that the company’s financial management and accounting practices remained consistent with established standards during this period of operational expansion.