Appirits Inc. reported a net loss in the second quarter as it grappled with a scandal in its Web Solutions business, prompting the Japanese internet services provider to cut its full-year forecast.
The Tokyo-based company posted a net loss of ¥16 million ($107,000) for the three months ended July, compared with a profit a year earlier. Sales were ¥4.22 billion, in line with expectations.
Appirits is implementing measures to prevent future project mismanagement, including strengthening middle management and introducing agile development methods. The company has completed its response to the troubled project and expects to resume growth in its core business.
“We’re turning the company into a school to create an environment where people and business can grow together,” CEO Junji Wada said in a video presentation.
Despite the setback, Appirits maintained its first-half dividend at ¥8 per share. The company targets ¥20 billion in sales and ¥2 billion in operating profit by fiscal year 2030, banking on continued growth in digital transformation demand.
Appirits plans to pursue acquisitions to expand its business and increase management depth. The company recently relocated its headquarters and has begun providing English disclosures to attract overseas investors.
