i-sol <4420> is composed of two segments: the main embedded software business (93.4% of the revenue for the fiscal year ending December 23) and the sensing solution business (6.6% of the revenue).

The embedded software business is divided into "embedded software products" that develop and sell RTOS (Real-Time Operating System) and "engineering services" that provide embedded software consignment operations and consulting services. The composition ratio in the embedded software business is 26.3% for "embedded software products" and 73.7% for "engineering services." The sales distribution by customer sector is 47.9% for automobile customers such as Denso <6902>, and 23.1% for consumer electronics customers such as Sony Group <6758> (both cumulative total for the first half of the fiscal year ending December 24). On the other hand, the sensing solution business provides logistics-related businesses that develop and sell on-board printers for specified slip issuance, environmental-resistant handheld terminals, and sales support software, as well as proposing sensor network systems for disaster prevention and reduction.

For the cumulative total of the first half of the fiscal year ending December 24, revenue increased by 29.2% compared to the same period last year, reaching 6,030 million yen, and operating income landed at a profit of 7.25 million yen (compared to a loss of 24 million yen in the same period last year). The company has continued to sell basic software for on-board vehicles previously handled by an equity method affiliate, Overth, since April 1, leading to increased revenue in both embedded software and sensing solution businesses. The increase in profit mainly from the increased revenue of embedded software products has resulted in accumulated operating profit. The full-year revenue is expected to increase by 25.7% compared to the previous period, reaching 12,099 million yen, and operating income is expected to turn into a profit of 988 million yen (compared to a loss of 82 million yen in the same period last year). The company seems to continue development investments for compatibility with the advancing "CASE" in the automotive market, which they position as a key target, and for the adoption of their products.

The company's basic policy for development investments aims to continue investing around 10% of revenue each period to further enhance the functionality of its own products. For future developments, in the embedded software business, in addition to expanding sales for automobiles through development investments in their own products for the automotive sector, they seem to aim for business expansion and performance growth across a wide range of industries focusing on their core sectors. Moreover, with the recent trends in automation and electrification, there is significant software demand in the automotive industry, expanding their business scope accordingly. In the sensing solution business, they plan to improve the profit margin of existing on-board printer and handheld terminal businesses, expand into new sensor network businesses, and enter the cashless payment business. With an eye on turning into an operating profit this fiscal year, it will be interesting to see if further business performance growth continues.