Tenda Corp. lowered its full-year earnings forecast as the Japanese tech company grapples with delays in a key gaming title from its subsidiary.
The Tokyo-based firm cut its revenue projection to ¥5.5 billion ($36.7 million) for the fiscal year ending May 2025, down 8.3% from its previous forecast. Operating profit is now expected to reach ¥500 million, representing a 28.5% reduction from earlier guidance.
Tenda cited postponement of a major title from its Tenda Games subsidiary as the primary reason for the downward revision. Despite launching beta testing in February, the company indicated that the official release schedule remains fluid.
In response, Tenda is pivoting toward artificial intelligence initiatives following its acquisition of AI specialist Almondo in the third quarter. The company is restructuring to become what it calls an “AI-Led” enterprise, accelerating its transformation from traditional IT services to higher-value AI and digital transformation solutions.
“We are rebuilding our portfolio with AI/DX-related businesses as our core operation,” the company stated in its announcement. Tenda plans to integrate Almondo’s AI technology across its existing IT services and eliminate low-margin projects.
Despite the forecast reduction, Tenda still projects a 6.2% year-on-year revenue increase, though profits are expected to decline compared to the previous year.
