Terilogy Holdings <5133> announced its consolidated financial results for the first quarter of the 2025 fiscal year (April to June 24) on the 14th. Sales increased by 21.3% to 1.658 billion yen compared to the same period of the previous year, operating loss was 0.109 billion yen (a loss of 0.009 billion yen in the same period of the previous year), ordinary loss was 0.071 billion yen (a loss of 0.005 billion yen in the same period of the previous year), and the net loss attributable to quarter to the parent company's shareholders was 0.074 billion yen (a loss of 0.011 billion yen in the same period of the previous year).

The sales of the network division were 0.364 billion yen, an increase of 3.5% compared to the same period of the previous year. The IP address management server products, which the company group is good at, won large-scale orders for DNS/DHCP projects for domestic manufacturing and information service industries due to various issues of IP address management acceleration, including security measures against telework and telecommuting, as well as system shift and cloud lift. In addition, Protective DNS (protective DNS) proposals, which block threats to DNS accelerating adoption by overseas government agencies and implement more effective security measures, have also been actively proposed. In addition, due to the sharp increase in DDoS damage in Japan, we actively worked on promotional activities to acquire new customers and carry out sales activities for expanding Radware's DDoS countermeasure products, leading to an increase in inquiries for DDoS attack countermeasure solutions. Furthermore, the sales of cloud-based wireless LAN systems for building a safe and secure network environment were solidly progressing due to the flexible mobility required for wireless LAN in office floors, warehouses, and the opening of new bases, and the replacement of long-term-used access points was increasing because we provide support even when problems occur.

The sales of the security division decreased by 5.4% to 0.584 billion yen. The company won orders for security measures for large domestic semiconductor factories. Also, due to the attention paid to control system and security risk analysis, the company won orders from major domestic manufacturing companies and electrical utilities. With its unique security services, we are working mainly in three areas: responding to cyber crime, such as ransomware and prevention of theft of important information such as intellectual property and defense against attacks on social infrastructure by APT groups, and analysis of disinformation (information operations) by groups with national backgrounds. Reports on geopolitics are highly rated, especially for analysis of information operations. In addition, the inquiries for cloud security services for log management and analysis, which can quickly and accurately capture external and internal threats from existing systems and security measures tools, SaaS, PaaS, and others, have increased, leading to orders from internet securities companies and information service industries.

The sales of the solution service division increased by 78.5% to 0.709 billion yen. The multilingual real-time video translation service "Mieru Interpreter" has been increasing in demand mainly for lodging facilities where there is a shortage of labor, as well as public transport and retail stores, and the number of contracts with government agencies and local governments has also been steadily increasing due to the increase in foreign residents. In addition, visual communication centered on Zoom licenses continues to maintain high demand from the market, and companies that shift to full-scale utilization from the conventional unit-based utilization form are starting to stand out as the usage form matures. In our proprietary RPA tool, usage has increased regardless of industry, industry, or scale, and we have been actively promoting marketing activities, leading to a steady increase in projects. IGLOOO, which conducts promotion business using inbound media to Japan, has seen an increase in PR demand for attracting foreign visitors from local governments and private companies. Creseed, which supports information system business and system development, has seen a steady increase in orders for replays of networks and servers and security measures associated with customer support services, as well as an increase in various system development projects and website production business cases. Logit, which provides contact center solutions for companies centered on voice, has been steadily promoting existing customer maintenance business and has seen an increase in inquiries for its main call center call recording business compared to the previous year.

For the full year ending in March 2025, the consolidated performance estimate includes revenue of 8.455 billion yen, a 22.9% increase from the previous year, operating profit of 0.376 billion yen, a 38.0% increase from the previous year, ordinary profit of 0.376 billion yen, a 5.3% decrease from the previous year, and net income attributable to parent company shareholders of 0.262 billion yen, maintaining the initial plan.