TradeWorks raised its full-year sales forecast and cut its profit forecast in the same notice on 6 November. For the year to December 2026, sales are now expected at ¥5.85bn, up from ¥5.7bn set on 12 February. Operating profit falls to ¥300mn from ¥480mn (down 37.5%), and net profit to ¥140mn from ¥300mn (down 53.3%). The company still expects sales and every profit line to beat the previous year.
Four items, two tied to the breach
The company puts the operating-profit shortfall down to four items totalling about ¥210mn:
- Cyber spending, about ¥60mn. TradeWorks has designated the fourth quarter a period of concentrated security investment after the October unauthorised access incident, including AI-based behaviour monitoring, third-party diagnostics and expanded penetration and source-code testing.
- Delayed acceptance, about ¥50mn of profit. Financial-institution customers reprioritised development work, and TradeWorks moved staff onto the security measures, so some projects will be accepted in 2027. The company says these were not lost orders.
- AI initiatives, about ¥60mn, ahead of a new medium-term plan starting in 2027.
- Subsidiary shortfalls, about ¥40mn at some consolidated subsidiaries.
Higher sales and better margins offset about ¥30mn, according to the results presentation.
What sits below operating profit
Net profit absorbs two more items: a net special loss of about ¥19mn booked in the first nine months, and an estimated ¥50mn loss from the breach, which the company says is not a final figure. Cyber insurance proceeds are not in the forecast because the amount is unsettled. The dividend forecast stays at ¥2 a share.
The nine-month figures were stronger: sales of ¥4.334bn, up 22.3%, and operating profit of ¥230mn, up 96.3%. The presentation puts fourth-quarter operating profit at about ¥70mn, on a 2 November basis. The company disclosed the incident in October (Earlier Tokyo Brief coverage).