February 10, 2011

Summary of Consolidated Financial Results for the Third Quarter of the Year Ending March 31, 2011
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:
February 14, 2011―
Scheduled commencement of dividend payment:
Quarterly Results Supplemental Materials
Yes
Quarterly Results Presentation Meeting
No
Company name:

1. Consolidated results for the third quarter of the fiscal year ending March 2011 (from April 1, 2010 to December
31, 2010)(1) Consolidated Operating Results (cumulative total)
Net Sales

Third quarter of fiscal
2011
Third quarter of fiscal
2010(All amounts rounded down, % change YoY)
Ordinary Income

Operating Income

Net Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

23,635

(2.9)

1,085

(0.8)

1,174

3.7

566

(1.1)

24,341(17.9)

1,094(50.9)

1,132(50.4)

572(48.0)

Third quarter of fiscal
2011
Third quarter of fiscal
2010

Net Income

Net Income

per Shareper Share after Dilution

Yen

Yen

40.94

－

41.39

－

(2) Consolidated Financial Position

Third quarter of fiscal
2011
Fiscal 2010

Total Assets

Net Assets

Shareholders’ Equity Ratio

Shareholders’ Equity per Share

Millions of yen

Millions of yen%

Yen

26,01814,91757.2

1,075.66

27,204

15,12955.4

1,089.15

Reference: Shareholders’ equity
Third quarter of fiscal 2011: ¥14,886 million
Fiscal 2010: ¥15,073 million

2. Dividends
Dividend per Share

Fiscal 2010
Fiscal 2011

End of First QuarterEnd of Second QuarterEnd of Third Quarter

Year-end

Yen

Yen

Yen

Yen

Yen

―
―

―
―

―
―

40.00

40.00

40.00

40.00

Fiscal 2011 (forecast)
Note: Revision of dividend forecast in this quarter:No

For the Year

3. Consolidated Earnings Forecast for Fiscal 2011 (from April 1, 2010 to March 31, 2011)(% of change from FY2010）
Net Income
Net Sales

Operating Income

Ordinary Income

Net Income
per Share

FY2011Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

32,000

(6.0)

2,000

0.1

2,100

2.0

1,150

(7.1)

83.09

Note: Revision of consolidated results forecast in this quarter:Yes

4. Others(1) Changes to significant subsidiaries during the current period :No

Note: Changes in specified subsidiaries during the current period that caused changes in the scope of consolidation(2) Application of simplified accounting and application of special accounting :No

Note: Application of simplified and special accounting for quarterly consolidated financial statements(3) Changes in accounting principles and procedures, presentation, etc.
1. Changes caused by revision of accounting standards, etc. :Yes
2. Changes other than 1. above:No
Note: Changes in significant accounting policies and procedures, presentation which are stated in “change in important matters in
preparing quarterly consolidated financial statements”(4) Number of shares outstanding (common stock)
1. Number of shares outstanding (including treasury stock)
Third quarter of fiscal 2011:15,240,000 sharesFiscal 2010:
15,240,000 shares
2. Number of treasury stock
Third quarter of fiscal 2011:
1,400,230 sharesFiscal 2010:
1,400,227 shares
3. Average number of shares over period (consolidated total for quarter)
Third quarter of fiscal 2011:
13,839,770 shares
Third quarter of fiscal 2010:
13,839,790 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. With regard to the assumptions and other related matters concerning forecasts for the
fiscal year ending March 31, 2011, please refer to the attachment page 3.

SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Third Quarter of the Year Ending March 31, 2011

1. Qualitative Information Concerning Second-Quarter Consolidated Business Results(1) Qualitative Information Concerning Consolidated Business Results
During the third quarter of the fiscal year (April 1, 2010 to December 31, 2010), although the Japanese economy
initially moved onto a moderate recovery track, the pace of increases in production and exports slowed from summer
due to such factors as the appreciation of the yen, and the Japanese economy came to a standstill. Despite hopes for a
pickup, the economic outlook remains uncertain amid fears of a downturn in overseas economies and evident risks
such as fluctuations in exchange rates and stock prices.
In the information services industry, the severe environment for orders persisted as corporate customers
maintained a cautious stance toward IT investments, reflecting uncertainty over future performance, and projects
were scaled down, postponed or undertaken in-house while order unit prices declined.
Amid these circumstances, the SRA Holdings Group implemented its group-wide fiscal year business policies,
namely, “securing a stable order flow,” “increasing gross profit margins and curbing costs” and “refining a solid
customer base and strengthening order-generating activities to create new opportunities.”
Along with these measures, we implemented the following business management initiatives as a response to signsof a deteriorating business environment (quantitative and qualitative declines in projects) that became visible from thestart of the third quarter of the fiscal year.
1) Sustain momentum at group companies that recorded favorable business results in the second quarter of the fiscal
year.
2) Promote measures for a recovery at group companies that failed to attain gross profit targets in the second
quarter.
3) Determine full fiscal year business results at a designated point in time based on the state of progress of theabove-mentioned initiatives for each group company.
4) Consider and implement a “contingency plan” for the entire group in the event further responses are necessary.
Within our fiscal-year business plan and recovery measures, policies of particular importance are “securing a stableorder flow,” “increasing gross profit margins and curbing costs” and “refining a solid customer base andstrengthening order-generating activities to create new opportunities.” The state of progress in implementing each ofthese initiatives is as follows.
Regarding “securing a stable order flow,” revenues increased at Software Science, Inc., which secured favorable
prime projects for medium-sized companies, and at SRA America, Inc., which recorded sales from large projects for
its principal customers. However, Software Research Associates, Inc., (SRA), which was adversely affected by theharsh environment for orders, recorded a decline in revenues. Advanced Integration Technology, Inc. (AIT) also
posted lower revenues due to the absence of large orders that provided sales in the same period of the previous fiscal
year.
For “increasing gross profit margins and curbing costs” as measures to strengthen cost management to raise grossprofit margins, we increased productivity, curbed outsourcing expenses and reduced production overhead expenses.
Through the implementation of such initiatives, Software Science and AIT achieved increases in profits. In contrast,
SRA posted a decrease in gross profit, as declines in order unit prices spread to every sector within the Systems
Development business. Consolidated gross profit rose slightly year on year.
Turning to “refining a solid customer base and strengthening order-generating activities to create newopportunities,” SRA OSS, Inc., a group company, concluded a business and capital alliance agreement with
U.S.-based nSolutions, Inc., with the aims of promoting SRA Holdings’ own IP product business* and expanding
1

SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Third Quarter of the Year Ending March 31, 2011

earnings opportunities. Under this alliance, primarily through SRA OSS, we aim to utilize nSolution’s successes inNorth, Central and South America, and strive for further global business development in Japan, Europe as well as in
China, India and ASEAN countries in the data center automation field, where the spread of cloud computing is
expected to spur an expansion of demand.
*Own IP products: Own-brand products that have intellectual property rights.
As a result of these initiatives, consolidated business results for the third quarter were as follows.
Although sales increased in the Systems Development business, sales declined in the Product Sales business and the
System Operations and Infrastructure Development business. As a result, consolidated net sales declined 2.9% year
on year to ¥23,635 million.
At the profit level, gross profit increased slightly, but operating income was virtually flat, declining 0.8% year on
year to ¥1,085 million, while ordinary profit increased 3.7% year on year to ¥1,174 million. Net income in the third
quarter declined 1.1% year on year to ¥566 million due to the recording of extraordinary losses that included a loss on
valuation of investment securities and a loss on valuation of stocks of subsidiaries and affiliates in the first quarter.
As described in the above explanation of third quarter consolidated results, net sales declined slightly while profits
remained at virtually the same level.
A summary of consolidated business results for the third quarter by business segment is shown below.
1) Systems Development
Although sales to banks declined, the Systems Development business recorded increased sales to manufacturing andelectric power industries. As a result, net sales for the third quarter rose 4.8% from the same period of the previous
fiscal year to ¥12,785 million.
2) System Operations and Infrastructure Development
Despite an increase in university-related orders, corporate-related orders for System Operations declined as customers
shifted to internal production. As a result, third-quarter net sales in the System Operations and Infrastructure
Development segment declined 9.7% from the same period of the previous year to ¥2,798 million.
3) Product Sales
Net sales declined 11.0% year on year to ¥8,051 million due to the absence of large-scale orders that provided sales inthe same period of the previous fiscal year at AIT.
(2) Qualitative Information Concerning Consolidated Financial Condition
1) Assets, Liabilities and Net Assets
Regarding financial condition at the end of the third quarter, current assets at the end of the third quarter declined¥1,901 million from the end of the previous fiscal year to ¥17,435 million. Although there was a ¥648 million
increase in work in process, notes and accounts receivable—trade decreased ¥1,549 million due to the collection ofreceivables and cash and deposits decreased ¥1,409 million due to the purchase of short-term investment securities
and payments for bonuses. Noncurrent assets increased ¥714 million to ¥8,582 million due to the acquisition of
investment securities. As a result, total assets decreased ¥1,186 million to ¥26,018 million.
On the liabilities side, total liabilities declined ¥975 million to ¥11,100 million due to a ¥700 million decline inaccounts payable—trade arising from the payment of payables as well as to a ¥397 million decline in income taxes
2

SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Third Quarter of the Year Ending March 31, 2011

payable accompanying the payment of income taxes. Net assets declined ¥211 million to ¥14,917 million due mainly
to cash dividends paid.
2) Analysis of Cash Flows
Cash and cash equivalents decreased ¥726 million year on year and ¥1,408 million from the end of the previous fiscal
year to ¥8,916 million.
The status of cash flows and factors underlying changes in cash flows for the second quarter are shown below.
Cash Flows from Operating Activities
Net cash provided by operating activities amounted to ¥1,095 million, an increase of 165.6% from the same periodof the previous fiscal year. This consisted mainly of such cash inflows as a decrease in notes and accounts
receivable—trade of ¥1,501 million and ¥976 million in income before income taxes and minority interests, while
principal cash outflows were ¥793 million in income taxes paid, a decrease of ¥646 million in notes and accounts
payable—trade, and an increase in inventories of ¥633 million.
Cash Flows from Investing Activities
Net cash used in investing activities amounted to ¥1,646 million, a decrease of 14.8% from the same period of theprevious fiscal year. This was due mainly to ¥1,047 million for purchases of investment securities, ¥373 million for
payments of loans receivable and ¥220 million for purchases of property, plant and equipment and purchases ofintangible assets.
Cash Flows from Financing Activities
Net cash used in financing activities amounted to ¥783 million, an increase of 34.6% from the same period of theprevious fiscal year. This was due mainly to ¥553 million in cash dividends paid and a net decrease in short-termloans payable of ¥230 million.
(3) Qualitative Information Concerning Consolidated Results Forecast
Regarding the forecast for consolidated business results for the fiscal year ending March 31, 2011, the environment
for securing orders is expected to remain difficult as corporate customers maintain a cautious stance toward IT
investments while projects are scaled down, postponed or carried out in-house and order unit prices decline. In viewof this outlook, we have revised our full-year consolidated forecast announced on May 13, 2010.
For specific details, refer to the Notice of Revised Consolidated Earnings Forecast for the Fiscal Year Ending
March 31, 2011 released today (February 10, 2011).
Our forecast for fiscal year-end dividends remains unchanged.

2. Other Information(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

SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Third Quarter of the Year Ending March 31, 2011(3) Summary of Changes in Accounting Principles, Procedures and Presentation Methods
1) Application of “Accounting Standard for Business Combinations”
From the first quarter of the current fiscal year, the Company adopted “Accounting Standard for Business
Combinations” (ASBJ Statement No. 21, December 26, 2008), “Accounting Standard for Consolidated
Financial Statements” (ASBJ Statement No. 22, December 26, 2008) and “Revised Guidance on AccountingStandard for Business Combinations and Accounting Standard for Business Divestitures” (ASBJ Guidance No.
10, December 26, 2008).
2) Application of “Accounting Standards for Asset Retirement Obligations”
From the first quarter of the current fiscal year, the Company adopted “Accounting Standards for Asset
Retirement Obligations” (ASBJ Statement No. 18, March 31, 2008) and “Guidance on Accounting Standards
for Asset Retirement Obligations” (ASBJ Guidance No. 21, March 31, 2008). As a result, consolidated
operating income and ordinary profit for the third quarter increased ¥13 million, respectively. There was no
impact on income before income taxes and minority interests.
The change in the amount of asset retirement obligations due to Application of Accounting Standards for
Asset Retirement Obligations was ¥14 million.
(4) Important Matters Regarding Assumptions of a Going Concern: None

4

SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Third Quarter of the Year Ending March 31, 2011

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

fiscal 2011

Balance Sheets at the end(as of December 31, 2010)of fiscal 2010 (summary))(as of March 31, 2010)ASSETS
Current assets:
Cash and deposits

7,547

8,957

Notes and accounts receivable—trade

4,726

6,275

Short-term investment securities

1,504

1,504

Merchandise and finished goods

350

385

Work in process

1,788

1,140

Deferred tax assets

472

467

1,048

610

(2)

(4)

17,435

19,337

Buildings

314

257

Accumulated depreciation

(183)

(173)

Buildings, net

130

83

Machinery, equipment and vehicles

640

697

Accumulated depreciation

(581)

(641)

59

56

Land

0

0

Other

105

101

Accumulated depreciation

(70)

(69)

Other, net

35

31

Total property, plant and equipment

226

172

Other

636

701

Total intangible assets

636

701

Investment securities

4,838

4,069

Deferred tax assets

1,540

1,586

Guarantee deposits

518

529

Other

957

949

Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets:
Property, plant and equipment

Machinery, equipment and vehicles,net

Intangible assets

Investments and other assets

5SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Third Quarter of the Year Ending March 31, 2011

Allowance for doubtful accounts

(55)

(48)

Allowance for investment loss

(79)

(93)

Total investments and other assets

7,719

6,993

Total noncurrent assets

8,582

7,867

Total assets

26,01827,204

6

SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Third Quarter of the Year Ending March 31, 2011

(Millions of Yen)
Quarterly Consolidated

End of third quarter ofBalance Sheets at the end

fiscal 2011of fiscal 2010 (summary))(as of December 31, 2010)(as of March 31, 2010)

LIABILITIESCurrent liabilities:
Accounts payable—trade

2,118

2,818

Short-term loans payable

1,954

2,184

Debentures due for redemption within one year

300－

Accrued expenses

731

570

Income taxes payable

124

522

Accrued consumption taxes

234

243

Provision for bonuses

404

569

Provision for directors’ bonuses

700Provision for loss on construction contracts

226

148

Other

763

518

6,927

7,576

Bonds payable－

300

Deferred tax liabilities

77

135

3,649

3,632

438

422

Negative goodwill

4

8

Other, net

2

－

4,173

4,498

11,10012,075

Capital stock

1,000

1,000

Capital surplus

4,483

4,483

Retained earnings

10,216

10,202

Treasury stock

(894)

(894)

Total shareholders’ equity

14,806

14,792

Valuation difference on available-for-sales securities

375

414

Foreign currency translation adjustments

(294)

(133)

Total valuation and translation adjustments

80

281

Subscription rights to shares

31

19

Minority interests－

36

14,917

15,129Total current liabilities
Noncurrent liabilities:

Provision for retirement benefits
Provision for directors’ retirement benefits

Total noncurrent liabilities
Total liabilities
NET ASSETS
Shareholders’ equity

Valuation and translation adjustments

Total net assets
7

SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Third Quarter of the Year Ending March 31, 2011

26,018

Total liabilities and net assets

8

27,204

SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Third Quarter of the Year Ending March 31, 2011(2) Quarterly Consolidated Statements of Income(Millions of Yen)
Consolidated

Consolidated

cumulative total for

cumulative total forthird quarter of fiscal

third quarter of fiscal

2010 (from April 1,

2011 (from April 1,2009 to December 31,

2010 to December 31,

2009)

2010)

Net sales

24,341

23,635

Cost of sales

20,443

19,706Gross profit

3,897

3,928

Selling, general and administrative expenses

2,802

2,843

Operating income

1,094

1,085

Interest received

18

37

Dividends received

18

19

Other

48

91

Total non-operating income

84

149

Interest expenses

29

26

Loss on foreign exchange

－

17

Other

17

17

Total non-operating expenses

46

60

1,132

1,174

Gain on sales of noncurrent assets

0－

Total extraordinary income

0－

Loss on valuation of investment securities

8

51

Loss on valuation of stocks of subsidiaries and affiliates－

86

Provision of allowance for investment loss

29

0

Loss on liquidation of affiliate

－

23

Other

4

36

Total extraordinary loss

41

198

1,090

976

Income taxes-current

526

397

Income taxes-deferred

(8)

12

Total income taxes

517

410

Income before minority interests－

566

Minority interests in income

0

－

572

566

Non-operating income

Non-operating expenses

Ordinary profit
Extraordinary income

Extraordinary loss

Income before income taxes and minority interests

Net income
9SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Third Quarter of the Year Ending March 31, 2011(3) Quarterly Consolidated Statements of Cash Flows(Millions of Yen)
Consolidated

Consolidated

cumulative total for

cumulative total forthird quarter of fiscal

third quarter of fiscal

2010 (from April 1,

2011 (from April 1,2009 to December 31,

2010 to December 31,

2009)

2010)

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

1,090

976

168

204

Loss on valuation of memberships

0－

Increase (decrease) in provision for retirement benefits

45

29

19

16

(234)

(164)

Increase (decrease) in provision for directors’ bonuses

(0)

70

Increase (decrease) in allowance for doubtful accounts

6

6

Increase (decrease) in allowance for investment loss

29

(7)

Interest and dividend income

(36)

(57)

Interest expense

29

26

Loss (gain) on valuation of investment securities

8

51

Loss on valuation of stocks of subsidiaries and affiliates－

86

Loss (gain) on sales of noncurrent assets(0)0Loss on retirement of noncurrent assets

1

7

Decrease (increase) in notes and accounts receivable—trade

1,635

1,501

Decrease (increase) in inventories(1,264)(633)

Increase (decrease) in notes and accounts payable—trade

(10)

(646)

Increase (decrease) in other liabilities

414

427

Increase (decrease) in accrued consumption taxes

(211)

(9)

Other, net

(190)

(19)

Subtotal

1,500

1,865

Interest and dividends income received

34

48

Interest expenses paid

(27)

(25)

(1,094)

(793)

412

1,095

(26)

(100)

1

0

(260)

(120)

－

1

Depreciation and amortization

Increase (decrease) in provision for directors’ retirement
benefits
Increase (decrease) in provision for bonuses

Income taxes paid
Net cash provided by operating activities
Net cash provided by (used in) investing activities:
Purchases of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchases of intangible assets
Proceeds from sales of intangible assets
10

SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Third Quarter of the Year Ending March 31, 2011

Purchases of investment securities(1,634)(1,047)

Proceeds from sales of investment securities

24

12

Payments for purchases of investments in subsidiaries

－

(32)

Payments of loans receivable

(511)

(373)

Collection of loans receivable

534

20

Payments into time deposits

(70)

(0)

Proceeds from withdrawal of time deposits

20－

Other, net

(9)

(8)

(1,932)(1,646)

Net increase (decrease) in short-term loans payable

(19)

(230)

Repayments of long-term loans payable

(10)

－

Purchase of treasury stock

(0)

(0)

(553)

(553)

－

(0)

(582)

(783)

7

(73)

Net increase (decrease) in cash and cash equivalents(2,110)(1,408)Cash and cash equivalents at beginning of period

11,753

10,324

Cash and cash equivalents at the end of period

9,643

8,916

Net cash used in investing activities
Net cash provided by (used in) financing activities:

Cash dividends paid
Other, net
Net cash used in financing activities
Effect of exchange rate changes on cash and cash equivalents

11

SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Third Quarter of the Year Ending March 31, 2011

(4) Notes Concerning Premise of Going Concern
None(5) Segment Informationa. Segment Information by Type of Business
Consolidated cumulative total for third quarter of fiscal 2010 (from April 1, 2009 to December 31, 2009)(Millions of yen)
SystemOperations

Systems
Development

andInfrastructure

Product

Eliminations/

Total

Sales

Corporate

Consolidated

Development
Sales(1) Sales to12,199

3,098

9,043

24,341－

24,341

41

186

345

573

(573)

－

Total sales

12,240

3,284

9,389

24,914(573)

24,341

Operating income

1,220

700

478

2,399

(1,305)

1,094

customers(2) Intersegment
sales ortransfers

Note:
Businesses are classified into segments according to similarities that include the types and characteristics of services.

b. Geographical Segments
Consolidated cumulative total for third quarter of fiscal 2010 (from April 1, 2009 to December 31, 2009)(Millions of yen)Japan

Other Regions

Eliminations/

Total

Corporate

Consolidated

Sales
22,327

2,013

24,341－

24,341

85

12

98

(98)

－

Total sales

22,412

2,026

24,439(98)

24,341

Operating income

1,247

125

1,372

(278)

1,094

(1) Sales to customers(2) Intersegment sales
or transfers

Notes:
1. Countries and regions are categorized based on geographic proximity.
2. Because only small amounts of net sales were recorded in each country and region outside Japan, these countries
and regions are aggregated under Other Regions.
Principal countries included in Other Regions are the United States and the Netherlands.

12

SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Third Quarter of the Year Ending March 31, 2011

c. Overseas Sales
Consolidated cumulative total for third quarter of fiscal 2010 (from April 1, 2009 to December 31, 2009)(Millions of yen)
Other Regions
I

Overseas Sales

II

Consolidated net sales

III

Overseas sales as a percentage

Total
2,014

2,014

－

24,341

8.3

8.3

of consolidated net sales (%)
Notes:

1. Countries and regions are categorized based on geographic proximity.
2. Because only small amounts of net sales were recorded in each country and region outside Japan, these countries
and regions are aggregated under Other Regions.
Principal countries included in Other Regions are the United States and the Netherlands.
3. Overseas sales are those recorded by the Company and its consolidated subsidiaries in countries and regions
outside Japan.

1. Summary of Reporting Segments
Consolidated cumulative total for third quarter of fiscal 2011 (from April 1, 2010 to December 31, 2010)
The Group’s reporting segments are those for which financial information separate from that of other units
comprising the Group can be obtained. Periodic reviews are made of reporting segments by the Board of Directors fordetermining the allocation of management resources and assessment of business results.
The Company carries out overall management of subsidiaries engaged in the three businesses of “Systems
Development,” “System Operations and Infrastructure Development” and “Product Sales.” Therefore, the Group’s
three reporting segments are “Systems Development,” “System Operations and Infrastructure Development” and“Product Sales.”Principal contents of business in each segment
Business segment

Content of businessz

Integrated

systemdevelopment

rangingfromdefining

requirements

todevelopment

andmaintenanceof

mainframe-based large systemsz
Systems Development

System integration covering system planning, development andintroduction of open systemsz

Solutions business offering business tools that utilize various
products and toolszOpen source business that offers technical support for systems
through open source softwarez

Operation management of computer systems and network systems

System Operations and z

Overall operation that includes data management and facilities

Infrastructure

management

Developmentz

Building of network systemsz

Outsourcing services
13

SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Third Quarter of the Year Ending March 31, 2011

Productz

Sales of packaged software that includes licensingz

Sales of system devices, centering on servers, in integration

Sales

serviceszConsulting services related to the introduction of IT

2. Information Concerning Net Sales and Income or Losses for each Reporting Segment
Consolidated cumulative total for third quarter of fiscal 2011 (from April 1, 2010 to December 31, 2010)(Millions of yen)AmountSystemOperations

Systems
Development

andInfrastructurerecorded on
Product
Sales

Adjustment

Total

*1

amountthe quarterly
consolidated
statements ofDevelopment

income *2

Sales
Sales to12,785

2,798

8,051

23,635－23,635transfers

31

180

302

513

(513)

－

Total sales

12,816

2,978

8,353

24,149(513)

23,635

Operating income

1,375

548

565

2,488

(1,403)

1,085

customers
Intersegment
sales or

Notes:
1. The segment income adjustment of minus ¥922 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.
3. Information Regarding Impairment Loss on Fixed Assets, Goodwill and Negative Goodwill, Etc. by Reporting
Segment
Consolidated cumulative total for third quarter of fiscal 2011 (from April 1, 2010 to December 31, 2010) (Significant
impairment loss on fixed assets)
No items to report(Significant change in the amount of goodwill)
No items to report(Significant gain on negative goodwill)
No items to report(Additional Information)
Effective from the first quarter of the current fiscal year, the Company adopted the “Accounting Standard forDisclosures about Segments of an Enterprise and Related information” (ASBJ Statement No. 17, March 27, 2009)
and “Guidance on Accounting Standard for Disclosures about Segments of an Enterprise and Related information”
14SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Third Quarter of the Year Ending March 31, 2011

(ASBJ Guidance No. 20, March 21, 2008).
(6) Notes on Significant Changes in Shareholders’ Equity
Consolidated cumulative total for third quarter of fiscal 2011 (from April 1, 2010 to December 31, 2010)
None

4. Other Information
Status of Production, Orders and Sales
Consolidated cumulative total for third quarter of fiscal 2011 (from April 1, 2010 to December 31, 2010)(1) Production amounts
Segment information by type of businessMillions of Yen

Systems Development
System Operations and Infrastructure
Development
Total% change YoY
13,749

103.2

2,831

90.6

16,581

100.8(2) Purchase amounts
Segment information by type of businessMillions of Yen% change YoY

Product Sales

5,017

87.3

Total

5,017

87.3

(3) Status of orders
OrdersSegment information by type of business

Systems Development

Order backlog

received(Millions of(% change

Yen)

YoY)

(Millions ofYen)(% change
YoY)

13,063

92.1

4,396

81.0

2,126

93.4

881

91.2

Product Sales

8,639

100.6

3,226

148.8

Total

23,829

95.1

8,504

99.3

System Operations and Infrastructure
Development(4) Sales amounts
Segment information by type of businessMillions of Yen

Systems Development% change YoY
12,78515

104.8

SRA Holdings, Inc. (3817) Summary of Consolidated Financial Results for the Third Quarter of the Year Ending March 31, 2011

System Operations and Infrastructure

2,798

90.3

Product Sales

8,051

89.0

Total

23,635

97.1

Development

16