IGNIS is currently in the middle of transforming its business model. Anticipating market trends, we drastically shifted our development resources from small sized apps (which was center to our service up until FYE September 2014) to medium- and large-size apps.
This change in our business model however, has lengthened the development time as well as the time it takes until an app starts to contribute to earnings. As a result, for FYE September 2015, while sales was 2,419 million yen (18.1% increase yoy), we posted an operating loss of 38 million yen (the previous year was a profit of 561 million yen), ordinary loss of 148 million yen (similarly, ordinary profit of 545 million yen), and a net loss of 306 million yen (similarly, net profit of 309 million yen). These results were below our initial forecasts, and we take this matter seriously in that our performance caused great concern to our shareholders.
At the same time, we believe that this management decision will go a long way towards contributing to the future growth of IGNIS. We are certain that restructuring the organization so that it can produce high quality apps that generate income for a long period of time is essential in order to survive in the soon-to-mature smartphone native apps market.
FYE September 2016 will be the time to harvest the crops of the seeds that we sowed. Please continue to watch IGNIS moving forward. Lastly, we would like to reiterate our deep appreciation for your understanding, and look forward to your continued support.
CTO, Representative Director