November 7, 2013

Summary of Consolidated Financial Results for the Second Quarter of the Year Ending March 31, 2014
SRA Holdings, Inc.
(URL: http://www.sra-hd.co.jp/)
Stock listing:Tokyo Stock Exchange
Code number:
3817
President:
Toru Kashima
For inquiries, please contact:
Makoto Kitai, General Manager, Finance Department, Administrative HeadquartersTel:(03)-5979-2666
Scheduled date of submission of quarterly securities report:
November 8, 2013―
Scheduled commencement of dividend payment:
Quarterly Results Supplemental Materials
Yes
Quarterly Results Presentation Meeting
Yes
Company name:

1. Consolidated results for the second quarter of the fiscal year ending March 2014
(from April 1, 2013 to September 30, 2013)(1) Consolidated Operating Results (cumulative total)
Net Sales

Second quarter of fiscal
2014
Second quarter of fiscal
2013(All amounts rounded down, % change YoY)
Ordinary Profit

Operating Income

Net Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

16,321

7.6

966

7.4

1,193

24.6

664

30.1

15,165

(4.6)

899

10.6

957

8.0

511

(15.8)

Note：Comprehensive Income
Second quarter of fiscal 2014: ¥654 million(113%)
Second quarter of fiscal 2013: ¥307 million((39.3)%)

Second quarter of fiscal
2014
Second quarter of fiscal
2013

Net Income

Net Income

per Shareper Share after Dilution

Yen

Yen

50.61

50.33

38.91

38.90

(2) Consolidated Financial Position

Second quarter of fiscal
2014
Fiscal 2013

Shareholders’ Equity Ratio

Total Assets

Net Assets

Millions of yen

Millions of yen%

28,551

17,42560.9

28,133

17,35961.6

Reference: Shareholders’ equity
Second quarter of fiscal 2014: ¥17,382 million
Fiscal 2013: ¥17,319 million

2. Dividends
Dividend per Share

Fiscal 2013
Fiscal 2014

End of First QuarterEnd of Second QuarterEnd of Third Quarter

Yen

Yen

Yen

Yen

Yen

―
―

―
―

―

45.00

45.00

40.00

40.00

Fiscal 2014 (forecast)
Note: Revision of dividend forecast in this quarter:No
1Year-end

For the Year

3. Consolidated Earnings Forecast for Fiscal 2014 (from April 1, 2013 to March 31, 2014)(% of change from FY2013）
Net Income
Net Sales

Operating Income

Ordinary Profit

Net Income
per Share

FY2014

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

34,900

8.5

2,900

19.0

3,000

4.0

1,860

10.6

141.57

Note: Revision of consolidated results forecast in this quarter:No

4. Others(1) Changes to significant subsidiaries during the current period :No(2) Application of simplified accounting and application of special accounting :No(3) Changes in accounting principles, changes in accounting estimates, and restatements
1. Changes caused by revision of accounting standards, etc. :No
2. Changes other than 1. above:No
3. Changes in accounting estimates:
No
4. Restatements:
No(4) Number of shares outstanding (common stock)
1. Number of shares outstanding (including treasury stock)
Second quarter of fiscal 2014:15,240,000 sharesFiscal 2013:15,240,000 shares
2. Number of treasury stock
Second quarter of fiscal 2014:
2,101,724 sharesFiscal 2013:
2,101,709 shares
3. Average number of shares over period (consolidated total for quarter)
Second quarter of fiscal 2014:
13,138,287 shares
Second quarter of fiscal 2013:13,138,343 shares*Indication of quarterly review procedure implementation status
This earnings release is not subject to the quarterly review process as required by the Financial Instruments and Exchange Act of Japan.
As of the date when this earning release was issued, the review process on quarterly financial statements as required by the Financial
Instruments and Exchange Act had been finished.

*Explanation relating to the appropriate use of results forecasts, and other noteworthy items
Forward-looking statements in this earnings release, such as forecasts of results of operations, are based on the information currently
available and the certain assumptions that we regard as reasonable and therefore actual results may differ materially from those containedin or suggested by any forward-looking statements.

2

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2014

1. Qualitative Information Concerning Second-Quarter Consolidated Business Results(1) Explanation Concerning Business Results
During the second quarter of the fiscal year (April 1, 2013 to September 30, 2013), the Japanese economy moved
from a pickup phase toward a recovery owing to an improvement in corporate earnings, mainly in manufacturingindustries, supported by a rebound in personal consumption and exports and an increase in production.
In the information services industry, IT investments are expected to remain on a recovery track thanks to demand
for systems integration at megabanks and demand in the securities industry for program-related projects (Nippon
Individual Savings Account (NISA) program for tax-free small-amount accounts). Nevertheless, the current
environment for orders is expected to become increasingly severe due to continued intensifying competition.
Amid this business environment, in the third year of its Medium-Term Management Plan, the SRA Holdings Group
implemented the following specific measures in line with efforts to “undertake structural reforms in existing
businesses” as well as our “own IP products business” x “overseas business,” which is our medium- and long-term
growth strategy.
■Undertake structural reforms in existing businesses
As measures to expand orders and sales by strengthening business capabilities, we created new projects throughproposal-based sales and strengthened our order management structure. As a result of these efforts, Advanced
Integration Technology, Inc. (AIT) and Software Science Inc. recorded increases in sales over the same period of theprevious fiscal year.
Meanwhile, to build a high-profit production structure we continued to promote initiatives for realizing anappropriate level of production overhead costs.
■“Own IP products business” x “overseas business”
We made additional business investments in Proxim Wireless Corporation and Kingnet with the aim of further
implementing our medium- and long-term growth strategy of promoting our own IP products business in such growthmarkets as China, India and ASEAN.
In our own IP products business in Japan, we focused on expanding sales of such products as our comprehensive
education solutions “UniVision,” our mail archive “MailDepot,” our digital content service BELEGA-DC and our EC
building service BELEGA-EC.
Due to the above initiatives, our consolidated business results for the second quarter of the fiscal year were as
follows.
In terms of net sales, all three business segments, specifically the Systems Development business, the System
Operations and Infrastructure Development business and the Product Sales business, recorded increases in net sales.
As a result, consolidated net sales amounted to ¥16,321 million, a 7.6% increase from the same period of the previous
fiscal year.
At the profit level, operating income rose 7.4% from the same period of the previous fiscal year to ¥966 million
due to an increase in gross profit accompanying growth in sales. Ordinary profit rose 24.6% from the same period of
the previous fiscal year to ¥1,193 million due to foreign exchange gains and net income increased 30.1% to ¥664
million.
A loss on valuation of investment securities recorded as an extraordinary loss in the first quarter was no longer
3

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2014

required to be recorded in the second quarter because of a recovery in stock prices.
The Company applied the reversal method for the impairment of investment securities during the quarter.
Therefore, depending on the market value of securities at the end of the third quarter or at the end of this fiscal year,
there is a possibility that a loss on valuation of investment securities will be recorded as an extraordinary loss.
As detailed above regarding consolidated results for the second quarter of the fiscal year, net sales and profits
increased from the same period of the previous fiscal year. We maintained sales at virtually the same level as in our
second quarter forecast of consolidated results and achieved an increase in ordinary profit above the amount in thesame forecast.
A summary of consolidated business results for the second quarter by business segment is shown below.
1) Systems Development
Despite a decline in sales to electric power industries, the Systems Development business recorded increases in sales
to banks, securities companies and non-life insurance companies. As a result, net sales edged up 7.6% from the same
period of the previous fiscal year to ¥8,478 million.
2) System Operations and Infrastructure Development
Although there was a slight decrease in university-related orders, there was an increase in orders from companies. As
a result, net sales of the System Operations and Infrastructure Development business increased 2.8% from the same
period of the previous fiscal year to ¥1,718 million.
3) Product Sales
AIT recorded favorable sales, mainly in the financial sector and medical sector. As a result, net sales of the Product
Sales business increased 9.1% from the same period of the previous fiscal year to ¥6,125 million.
(2) Explanation Concerning Financial Condition(Financial Condition)
With regard to financial condition for the second quarter, total assets amounted to ¥28,551 million, an increase of
1.5% from the end of the previous fiscal year. Total liabilities increased 3.3% from the end of the previous fiscal yearto ¥11,126 million and net assets increased 0.4% to ¥17,425 million from the end of the previous fiscal year. Detailsof the principal increases and decreases from the end of the previous fiscal year are as follows.
(Total Assets)
Work in process increased ¥596 million to ¥1,608 million due to such factors as a rise in contracted development
projects. Merchandise and finished goods rose ¥382 million to ¥624 million owing to such factors as an increase intransactions for device sales. On the other hand, notes and accounts receivable—trade decreased ¥705 million to¥5,594 million due to the collection of trade receivable and investment securities declined ¥633 million to ¥6,504
million due to the sale and redemption of securities.
(Total Liabilities)
Accounts payable—trade increased ¥496 million to ¥2,944 million due to a rise in trade payables. Provision for loss
on construction contracts for commissioned development increased ¥165 million to ¥347 million. On the other hand,income taxes payable decreased ¥125 million to ¥398 million owing to the payment of corporate income taxes.
4

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2014

(Total Net Assets)
Foreign currency translation adjustments when converting the impact of exchange rates on overseas subsidiaries
increased ¥209 million to a positive ¥60 million. Retained earnings increased ¥73 million to ¥12,863 million. On theother hand, valuation difference on available-for-sale securities decreased ¥220 million to ¥368 million because
short-term investment securities and investment securities were marked to market.
Status of Cash Flows
Cash and cash equivalents (hereafter cash) on a consolidated basis during the second quarter of the fiscal year
increased ¥511 million to ¥8,008 million compared with at the end of the previous fiscal year-end (an increase of¥1,086 million from the same quarter of the previous fiscal year).
The status of cash flows and factors underlying changes in cash flows for the second quarter of the fiscal year are
shown below.
Cash Flows from Operating Activities
Net cash provided by operating activities amounted to ¥855 million (compared with ¥1,053 million in the samequarter of the previous fiscal year). This consisted mainly of such cash inflows as income before income taxes andminority interests of ¥1,193 million, a decrease in notes and accounts receivable—trade of ¥815 million and anincrease in notes and accounts payable—trade of ¥472 million, while cash outflows consisted primarily of an increase
in inventories of ¥974 million and income taxes paid of ¥678 million.
Cash Flows from Investing Activities
Net cash provided by investing activities amounted to ¥189 million (compared with ¥3,094 million used in investing
activities in the same quarter of the previous fiscal year). This consisted mainly of such cash inflows as proceedsfrom sales of investment securities of ¥798 million and proceeds from the liquidation of subsidiaries and affiliates of¥82 million, while cash outflows consisted mainly of payments of loans receivable of ¥603 million and payments into
time deposits of ¥80 million.
Cash Flows from Financing Activities
Net cash used in financing activities amounted to ¥612 million (compared with ¥525 million used in financing
activities in the same quarter of the previous fiscal year). This consisted mainly of such cash outflows as cash
dividends paid of ¥591 million and a net decrease in short-term loans payable of ¥20 million.
(3) Explanation Concerning Consolidated Results Forecast and Other Future Projections
No revision has been made to forecasts in Summary of Consolidated Financial Results for the Year Ended March 31,
2014 released on May 9, 2013.

2. Summary Information (Notes)(1) Significant changes involving subsidiaries during the period: None
(2) Application of simplified accounting methods and accounting methods specific to the preparation of the quarterly
consolidated financial statements: None

(3) Changes in accounting principles, changes in accounting estimates and restatements: None
5

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2014

3. Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Millions of Yen)
End of second quarter of

Fiscal 2013(as of March 31, 2013)

fiscal 2014(as of September 30, 2013)ASSETS
Current assets:
Cash and deposits

7,197

7,789

Notes and accounts receivable—trade

6,299

5,594

Short-term investment securities

1,002

505

Merchandise and finished goods

242

624

Work in process

1,011

1,608

Deferred tax assets

531

520

Other

1,222

1,597

Allowance for doubtful accounts

(35)

(32)

17,473

18,208

349

326

(253)

(230)

96

96

569

557

(522)

(509)

46

47

119

111

Accumulated depreciation

(77)

(69)

Other, net

42

41

184

186

Other

894

770

Total intangible assets

894

770

Investment securities

7,137

6,504

Deferred tax assets

1,049

1,209

Guarantee deposits

402

401

Other

1,093

1,383

Allowance for doubtful accounts

(14)

(14)

Allowance for investment loss

(87)

(97)

Total investments and other assets

9,580

9,385

Total current assets
Noncurrent assets:
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Other

Total property, plant and equipment
Intangible assets

Investments and other assets

6

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2014

Total noncurrent assets
Total assets

7

10,66010,342

28,13328,551SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2014

(Millions of Yen)
End of second quarter of

Fiscal 2013

fiscal 2014(as of March 31, 2013)(as of September 30, 2013)

LIABILITIESCurrent liabilities:
Accounts payable—trade

2,447

2,944

Short-term loans payable

1,229

1,509

Accrued expenses

590

513

Income taxes payable

523

398

Accrued consumption taxes

241

133

Provision for bonuses

594

641

Provision for directors’ bonuses

50

31

Provision for loss on construction contracts

181

347

Asset retirement obligations

17

–

Other

807

816

6,683

7,336

Long-term loans payable

300–

Deferred tax liabilities

3

5

3,620

3,617

165

149

0

17

4,090

3,789

10,774

11,126

Capital stock

1,000

1,000

Capital surplus

4,483

4,483

Retained earnings

12,78912,863

Treasury stock(1,393)(1,393)

Total shareholders’ equity

16,87916,953

Valuation difference on available-for-sale securities

588

368

Foreign currency translation adjustments

(148)

60

Total accumulated other comprehensive income

439

429

39

42

Total net assets

17,35917,425

Total liabilities and net assets

28,13328,551

Total current liabilities
Noncurrent liabilities:

Provision for retirement benefits
Provision for directors’ retirement benefits
OthersTotal noncurrent liabilities
Total liabilities
NET ASSETS
Shareholders’ equity

Accumulated other comprehensive income

Subscription rights to shares

8

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2014

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(Consolidated Cumulative Total for Second Quarter)(Millions of Yen)
Consolidated

Consolidated

cumulative total for

cumulative total forsecond quarter of

second quarter offiscal 2013 (from April

fiscal 2014 (from April

1, 2012 to September

1, 2013 to September

30, 2012)

30, 2013)

Net sales

15,165

16,321

Cost of sales

12,48813,505Gross profit

2,677

2,815

Selling, general and administrative expenses

1,777

1,849

899

966

Interest received

87

94

Dividends received

25

33

Foreign exchange gains

–

51

Other

32

75

Total non-operating income

144

255

Interest expenses

14

13

Transfer agent processing fee

10

13

Other

61

0

Total non-operating expenses

86

27

957

1,193

Gain on sales of investment securities

11

4

Reversal of allowance for investment loss

–

2

Other

0

0

Total extraordinary income

126Loss on retirement of noncurrent assets

02

Loss on liquidation of subsidiaries and affiliates

–

4

Other

0

0

Total extraordinary loss

06

Operating income
Non-operating income

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary loss

9

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2014

Income before income taxes and minority interests

969

1,193

Income taxes-current

474

553

Income taxes-deferred

(16)

(24)

Total income taxes

458

528

Income before minority interests

511

664

Net income

511

664

511

664

(170)

(220)

(33)

209

(203)

(10)

307

654

307

654

–

–

(Quarterly Consolidated Statements of Comprehensive Income)(Consolidated Cumulative Total for Second Quarter)
Income before minority interests
Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustments
Total other comprehensive income
Comprehensive income(breakdown)Comprehensive income attributable to parent
company shareholders
Comprehensive income attributable to minority
shareholders

10

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2014

(3) Consolidated Statements of Cash Flows(Millions of Yen)

Consolidated

Consolidated

cumulative total for

cumulative total forsecond quarter of

second quarter offiscal 2013 (from April

fiscal 2014 (from April

1, 2012 to September

1, 2013 to September

30, 2012)

30, 2013)

Net cash provided by (used in) operating activities:
Income before income taxes and minority interests

969

1,193

Depreciation and amortization

212

199

Increase (decrease) in provision for retirement benefits

(2)

(4)

Increase (decrease) in provision for directors’ retirement benefits

(1)

(15)

6

47

Increase (decrease) in provision for directors’ bonuses

(24)

(18)

Increase (decrease) in allowance for doubtful accounts

10

(1)

Increase (decrease) in allowance for investment loss

–

(2)

(112)

(128)

Interest expense

1413

Loss (gain) on valuation of investment securities

0–

Loss (gain) on sales of investment securities

(11)

(4)

Loss (gain) on sales of noncurrent assets

(0)

(0)

Loss on retirement of noncurrent assets

02

Decrease (increase) in notes and accounts receivable—trade

1,089

815

Decrease (increase) in inventories

(499)

(974)

Increase (decrease) in notes and accounts payable—trade

(63)

472

Increase (decrease) in other liabilities

155

(120)

(128)

(107)

Other, net

6577

Subtotal

1,679

1,443

85

105

Interest expenses paid

(14)

(14)

Income taxes paid

(697)

(678)

Net cash provided by operating activities

1,053

855

(31)

(12)

2

0

Purchase of intangible assets

(106)

(41)

Purchase of investment securities

(664)

(55)

520

798

–

82

(3,323)(603)

Increase (decrease) in provision for bonuses

Interest and dividend income

Increase (decrease) in accrued consumption taxes

Interest and dividends income received

Net cash provided by (used in) investing activities:
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment

Proceeds from sales of investment securities
Proceeds from liquidation of subsidiaries and affiliates
Payments of loans receivable
11

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2014

Collection of loans receivable

503

101

Payments into time deposits

–

(80)

Other, net

6(0)(3,094)

189

–

20

(0)

(0)

(525)

(591)

(0)

(0)

(525)

(612)

(6)

77

Net increase (decrease) in cash and cash equivalents(2,574)

511

Cash and cash equivalents at beginning of period

9,496

7,497

Cash and cash equivalents at the end of period

6,922

8,008

Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities:
Net increase (decrease) in short-term loans payable
Purchase of treasury stock
Cash dividends paid
Other
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents

12

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2014

(4) Notes Concerning Consolidated Financial Statements for the Second Quarter(Notes Concerning Premise of Going Concern)
None(Notes on Significant Changes in Shareholders’ Equity)
None(Segment Information)
I. Consolidated cumulative total for second quarter of fiscal 2013 (from April 1, 2012 to September 30, 2012)
1. Information Concerning Net Sales and Income or Losses for each Reporting Segment(Millions of yen)AmountSystemOperations

Systems
Development

andInfrastructurerecorded on
Product

Adjustment

Total

Sales

*1

the quarterly
consolidated

amountstatements ofDevelopment

income*2

Sales(1) Sales to
Customers

7,881

1,671

5,612

15,165－

15,165

20

169

256

447

(447)

－

7,902

1,841

5,869

15,612(447)

15,165

910

306

294

1,511

(612)

899

(2) Intersegment
sales ortransfers
Total sales
Operating income

Notes:
1. The segment income adjustment of minus ¥612 million is a company-wide expense not apportioned to any reporting segment.
Company-wide expenses are general and administrative expenses and R&D expenses not attributed to any reporting segment.
2. Segment operating income is adjusted in operating income on the quarterly consolidated statements of income.

2. Information concerning impairment loss on fixed assets or goodwill for each reporting segment
None
II. Consolidated cumulative total for second quarter of fiscal 2014 (from April 1, 2013 to September 30, 2013)
1. Information Concerning Net Sales and Income or Losses for each Reporting Segment(Millions of yen)AmountSystemSystems
Development

Operations
andInfrastructurerecorded on
Product
Sales

Total

Adjustment*1

amountthe quarterly
consolidated
statements ofDevelopment

income*2
13

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2014

Sales(3) Sales to
Customers

8,478

1,718

6,125

16,321－

16,321

15

136

229

381

(381)

－

8,494

1,854

6,355

16,703(381)

16,321

881

364

339

1,584

(618)

966

(4) Intersegment
sales ortransfers
Total sales
Operating income

Notes:
1. The segment income adjustment of minus ¥618 million is a company-wide expense not apportioned to any reporting segment.
Company-wide expenses are general and administrative expenses and R&D expenses not attributed to any reporting segment.
2. Segment operating income is adjusted in operating income on the quarterly consolidated statements of income.

2. Information concerning impairment loss on fixed assets or goodwill for each reporting segment
None(Significant subsequent events)
The Board of Directors of Company subsidiary Software Research Associates, Inc. convened on October 2, 2013 andresolved to provide a guarantee of liabilities for ¥500 million in financing provided to SJI Inc. by Mizuho Bank, Ltd.
and a guarantee of liabilities contract was concluded on October 11, 2013. The period covered by the guarantee of
liabilities is until December 27, 2013.

14

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2014

4. Other Information
1. Status of Production, Orders and Sales(1) Production amounts
Production by segment in the second quarter of the fiscal year ending March 31, 2014 is as follows.
Consolidated cumulative total for
Segment information by type of businesssecond quarter of fiscal 2014
(from April 1, 2013 to September% change YoY

30, 2013)
Systems Development (Millions of Yen)
System Operations and Infrastructure
Development (Millions of Yen)
Total (Millions of Yen)

9,049

106.7

1,733

102.1

10,782

105.9

Notes:
1. Amounts are based on sales price.
2. The amounts above do not include consumption tax.
3. Intersegment transactions are offset.

(2) Purchase amounts
Purchases by segment in the second quarter of the fiscal year ending March 31, 2014 are as follows.
Consolidated cumulative total for
Segment information by type of businesssecond quarter of fiscal 2014
(from April 1, 2013 to September% change YoY

30, 2013)
Product Sales (Millions of Yen)

4,313

120.9

Total (Millions of Yen)

4,313

120.9

Notes:
1. Amounts are based on purchase price.
2. The amounts above do not include consumption tax.
3. Intersegment transactions are offset.

(3) Status of orders
Status of orders by segment in the second quarter of the fiscal year ending March 31, 2014 is as follows.
OrdersSegment information by type of business

Order backlog

received% change YoY(Millions of% change YoY

Yen)

Yen)
Systems Development(Millions of

10,093

15

123.4

5,874

141.1

SRA Holdings, Inc. (3817) Summary of Second-Quarter Consolidated Financial Results for the Year Ending March 31, 2014

System Operations and Infrastructure

1,449

104.0

1,195

106.3

Product Sales

6,945

132.3

4,026

126.3

Total

18,489124.7

11,096130.9

Development

Notes:
1. Amounts are based on sales price.
2. The amounts above do not include consumption tax.
3. Intersegment transactions are offset.

(4) Sales amounts
Sales by segment in the second quarter of the fiscal year ending March 31, 2014 are as follows.
Consolidated cumulative total for
Segment information by type of businesssecond quarter of fiscal 2014
(from April 1, 2013 to September% change YoY

30, 2013)
Systems Development (Millions of Yen)

8,478

107.6

1,718

102.8

Product Sales (Millions of Yen)

6,125

109.1

Total (Millions of Yen)

16,321

107.6

System Operations and Infrastructure
Development (Millions of Yen)

Notes:
1. Amounts are based on sales price.
2. The amounts above do not include consumption tax.
3. Intersegment transactions are offset.

16