Zenith Tech <4492> announced its consolidated financial results for the second quarter of the fiscal year ending March 2025 (April-September 2024) on the 14th. Revenue increased by 26.4% year-on-year to 3.993 billion yen, operating profit rose by 82.7% to 0.358 billion yen, ordinary profit increased by 79.9% to 0.354 billion yen, and net income attributable to parent company shareholders was up by 54.8% to 0.185 billion yen.

In the systems solution business, revenue increased by 19.4% year-on-year to 2.342 billion yen, and segment profit rose by 53.2% to 0.608 billion yen. Orders for integrated system development of software and hardware, which are strengths of the company, continued to be robust. System development saw recovery in production systems returning to normal operations after being affected by delays from external vendors in the previous period, exceeding levels before the issues arose, and the advancement of major customers' annual development plans contributed to increased revenue and profit. Additionally, software development made advancements in acquiring new in-vehicle development projects such as onboard integrated solutions and cybersecurity.

In the engineering solution business, revenue was up 43.7% year-on-year to 1.41 billion yen, and segment profit increased by 39.0% to 0.225 billion yen. The three-dimensional simulation software "FlexSim" continued to gain orders for expansions and new projects from major customers in the automotive, electronics, and electronic component sectors, contributing significantly to profits. The three-dimensional CAD/CAM software "Mastercam" saw an increase in revenue compared to the previous year, aided by the effects of a campaign conducted during the first quarter of the consolidated accounting period and a focus on acquiring customized projects. However, due to the impact of revised procurement prices during the interim consolidated accounting period, profitability did not grow as much as the increase in revenue. The PLM business experienced growth in revenue due to the inclusion of Flash Systems, acquired in April 2024, in the consolidated profit and loss statement from the second quarter; however, it did not reach levels of revenue that exceeded the costs incurred for organizational structuring and talent acquisition and training.

In the GPS business, revenue increased by 11.9% to 0.252 billion yen, and segment profit rose by 2.2% to 0.061 billion yen. The total cumulative number of installations for the disaster prevention smartphone app "Coco Dayo" reached 1.54 million, resulting in a significant increase in revenue compared to the previous year; however, revenue during the second quarter of the consolidated accounting period did not grow as much as in the first quarter due to fluctuations in sale prices of Sugotoku. Profitability saw a slight increase, influenced by rising server usage fees in dollars due to yen depreciation, as well as rising development costs.

The consolidated earnings forecast for the fiscal year ending March 2025 maintains the revised projections announced on November 6, stating that revenue is expected to increase by 18.9% year-on-year to 8.5 billion yen, operating profit is projected to rise by 30.3% to 0.82 billion yen, ordinary profit is forecasted to grow by 26.0% to 0.8 billion yen, and net income attributable to parent company shareholders is anticipated to increase by 13.3% to 0.47 billion yen.