Micware Co., Ltd. Announces First Half of Fiscal Year 2027 Financial Results

(NASDAQ:MWC) Micware Co., Ltd. announced its unaudited financial results for the six months ended August 31, 2026. Revenue was JPY10,612.7 million (US$66.4 million), up 3.4% from JPY10,261.1 million in the prior-year period. Gross profit was JPY3,847.9 million (US$24.1 million), an increase of 19.5% from JPY3,220.5 million, with gross profit margin rising to 36.3% from 31.4%. Operating profit was JPY788.7 million (US$4.9 million), up 0.5% from JPY784.9 million. Net income was JPY612.9 million (US$3.8 million), down from JPY708.8 million, and net income attributable to ordinary shareholders was JPY620.0 million (US$3.9 million), down from JPY702.9 million. Adjusted operating profit was JPY1,100.5 million (US$6.9 million), up 33.4% from JPY824.8 million. Basic earnings per share were JPY10.68 (US$0.07), and diluted earnings per share were JPY9.81 (US$0.06), both down from JPY12.55. Revenue from software development services was JPY8,395.3 million (US$52.6 million), up 4.1%, driven by a JPY319.2 million increase in SDV segment revenue and customization work for taxi operators. Licensing revenue was JPY1,520.4 million (US$9.5 million), up 3.6%, mainly due to JPY98.1 million in higher LBS licensing revenue. Software-related services revenue was JPY697.0 million (US$4.4 million), down 4.8%. Cost of revenue was JPY6,764.8 million (US$42.3 million), down 3.9%, reflecting reductions in SDV and LBS project costs, partly offset by higher costs for new LBS models and a JPY93.2 million share-based compensation expense. Total operating expenses were JPY3,059.2 million (US$19.2 million), up 25.6%. Selling, general, and administrative expenses were JPY2,230.0 million (US$14.0 million), up 16.4%, mainly due to a JPY190.5 million increase in share-based compensation, higher personnel expenses, and professional fees. Research and development expenses were JPY829.2 million (US$5.2 million), up 59.7%, primarily for DynaPlanet development. As of August 31, 2026, cash and cash equivalents were JPY10.6 billion (US$66.3 million), up from JPY8.3 billion as of February 28, 2026. Net cash provided by operating activities was JPY1.4 billion (US$8.7 million), net cash used in investing activities was JPY123.9 million (US$0.8 million), and net cash provided by financing activities was JPY1.1 billion (US$6.6 million). On May 15, 2026, Micware completed its IPO on the Nasdaq Global Market, issuing 3,277,500 ADSs for gross proceeds of approximately JPY4,185.2 million (US$26.2 million) and net proceeds of approximately JPY3,781.0 million (US$23.7 million). The company advanced its SDV and DynaPlanet strategies, with DynaPlanet-related revenue recognized for the first time. Earnings calls are scheduled for November 10 and 11, 2026, in English and Japanese, with replays available for one year. The exchange rate used for translations was JPY159.74 to US$1.00 as of August 31, 2026.