Nippon Ichi Software Q3 2009 Quarterly Report

Key insights

6 takeaways

01
Nippon Ichi Software reported a net loss of 165.1 million yen for Q3 2009, covering the period from October 1 to December 31, 2008.See it on page 17
02
The company recorded total sales of 284.9 million yen, with the consumer business segment accounting for 253.7 million yen of that total.See it on page 4
03
Operating losses reached 101.3 million yen, exacerbated by a 53.6 million yen write-down of deferred tax assets.See it on page 16
04
Despite fiscal losses, the company maintained a cash and cash equivalent balance of 499.8 million yen as of December 31, 2008.See it on page 18
05
Operational activity during the quarter included the release of two consumer titles: 'Prinny: Can I Really Be the Hero?' and 'The Conveni DS'.See it on page 5
06
The company navigated the global financial crisis by focusing on its multi-platform strategy and expanding its amusement facility operations.See it on page 5

Summary

The Nippon Ichi Software Q3 2009 quarterly report outlines the company’s financial performance for the period spanning October 1, 2008, to December 31, 2008. During this interval, the company faced a challenging economic environment characterized by a global financial crisis and a downturn in both the consumer and mobile gaming sectors. The primary thesis of the report reflects a period of fiscal contraction, as the company navigated declining market conditions while attempting to maintain its multi-platform strategy and expand its amusement facility operations.

Financial results for the third quarter indicate a net loss of 165.1 million yen, significantly impacted by the full write-down of deferred tax assets totaling 53.6 million yen. Total sales for the quarter reached 284.9 million yen, with the consumer business segment contributing 253.7 million yen. The company reported an operating loss of 101.3 million yen for the quarter. Despite these losses, the company maintained a cash and cash equivalent balance of 499.8 million yen as of December 31, 2008.

The scope of the report covers the consolidated operations of Nippon Ichi Software and its subsidiaries, primarily operating within Japan and North America. The methodology adheres to Japanese financial reporting standards, including the application of quarterly consolidated financial statement rules and a review by Azusa Audit Corporation. Key operational activities included the release of two consumer titles—Prinny: Can I Really Be the Hero? and The Conveni DS—alongside efforts to expand digital content for mobile platforms and increase the capacity of amusement facilities to bolster future profitability. The report concludes that while the company faced significant headwinds, there were no major changes to its fundamental business structure or management strategy during this period.