EM Systems Reports Q1 Net Loss Amid Declining Sales and Higher Costs

TOKYO, May 14 (Pulse News Wire) – EM Systems CO.,LTD. (4820.T) reported a lower net profit of ¥155 million for the first quarter of fiscal year 2026, compared to a profit of ¥1.125 billion in the same period last year.

The decline was primarily due to reduced sales from the winding down of special needs projects related to health administration initiatives and higher costs associated with hardware replacements and upfront expenses. Operating revenue was ¥2 billion from ¥2.032 billion year-over-year, reflecting lower demand for initial system installations and electronic prescriptions. In its segment analysis, the company noted significant impacts across its pharmacy and medical systems divisions, with both experiencing declines in sales and operating profits. The healthcare and welfare division saw improvements in profitability thanks to price adjustments made ahead of time.

However, overall earnings were negatively affected by the unexpected drop-off in health administration-related revenues and increased operational costs. For the second quarter, EM SYSTEMS revised its outlook, projecting a continued downward pressure on earnings despite stable hardware replacement demand. The company emphasized ongoing efforts to enhance product value and diversify customer acquisition strategies to mitigate future risks and support long-term growth. Management stated that further updates would be provided should there be any changes impacting their growth scenarios or annual forecasts.

Additionally, EM SYSTEMS adjusted its interim dividend payout to ¥5 per share based on the revised mid-term net income expectations, maintaining its commitment to shareholder returns while carefully managing cash flows amid uncertain economic conditions.