Sysmex Corporation

Revenue declined YoY to approximately JPY105.7 billion, or 94.4% of the prior year. Operating profit fell to JPY10.62 billion, or 63.5% of the prior year, and quarterly profit declined to JPY4.55 billion, or 41.3% of the prior year. The Japan system transition reduced Q1 revenue by JPY3.3 billion and operating profit by JPY3.0 billion, and an overseas inventory revaluation added JPY1.7 billion of cost of sales adjustments; together these special factors cut revenue by JPY3.3 billion and operating profit by JPY4.8 billion. For H1, management now expects revenue to decrease by JPY12.5 billion to JPY240 billion and operating profit to decrease by JPY8.5 billion to JPY36 billion. For the full year, management said it still intends to maintain initial targets, with the U.S. tariff impact expected to remain within the initial estimate of about JPY3 billion to JPY4 billion.

Kaoru Asano said the quarter’s profit decline did not reflect a deterioration in core business, but rather temporary special factors tied to the global system switch and an inventory valuation review. He stressed that the Japan transition was handled cautiously to avoid disruptions to hospitals, even though it temporarily restricted orders, and said the company still sees a path to recovery through H2. He also highlighted positive developments including XR and CN launches in the U.S., Alzheimer’s test progress, and growth initiatives in Japan, China, and emerging markets.

Kensuke Iizuka quantified the quarter clearly: revenue was about JPY105.7 billion, operating profit JPY10.62 billion, and quarterly profit JPY4.55 billion. He said operating profit was hit by lower gross profit from weaker revenue, JPY1.7 billion of overseas inventory valuation adjustments, and about JPY600 million of added amortization from the new core system, while SG&A rose about JPY2.9 billion mainly on headcount and direct-sales expansion. He also said the cost-of-sales ratio worsened by 0.9 percentage points, R&D was down JPY940 million due to completed coagulation projects and a life-science expense review, and the U.S. tariff impact should stay within JPY3 billion to JPY4 billion for the full year.

Analysts focused on why the Japan system-transition impact was delayed, whether the Q1 inventory valuation adjustment was one-time, and how much of China’s weakness was tied to CRP and other bundled tests. Management said the delayed recovery came from slower-than-expected offsetting contributions from medical robotics, delayed product launches, and weaker-than-expected growth in other regions, and admitted they should have communicated the quarter-specific impact more clearly. On China, they said immunochemistry has been hit hardest by VBP, while CRP and some other bundled tests have been pressured by policy changes; they also said Hematology has been relatively less affected, with no major market-share loss.