MIRA
INFORM REPORT
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Report Date : |
29.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
LITTLE EARTH CORPORATION CO LTD |
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Registered Office : |
Shiodome City Center 11F, 1-5-2 Higashi-Shimbashi Minatoku Tokyo
105-7111 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
Sept 1986 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Internet security service provider |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Yen 268.1 millions |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name
LITTLE EARTH CORPORATION CO LTD
REGD NAME
KK Rakku (LAC)
MAIN OFFICE
Shiodome City Center 11F, 1-5-2 Higashi-Shimbashi Minatoku Tokyo
105-7111 JAPAN
Tel : 03-5537-2600
Fax : 03-5537-2609
URL : http://www.lac.co.jp/
E-Mail address: snsproduct@lac.co.jp
ACTIVITIES
Internet security service provider
BRANCH(ES)
Nagoya
OFFICER(S)
TERUHIKO TAKANASHI, PRES Itsuro
Nishimoto, dir
Masaru Saitoh, dir Michinori
Shiraishi, dir
Yen Amount: In
million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 6,454 M
PAYMENTS REGULAR CAPITAL Yen 1,159 M
TREND STEADY WORTH Yen 2,357 M
STARTED 1986 EMPLOYES 449
COMMENT
INTERNET SECURITY SERVICE PROVIDER. FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 268.1 MILLION, 30 DAYS NORMAL TERMS.
Forecast (or estimated)
figures for 31/12/2007 fiscal term
HIGHLIGHTS
The subject company was established by Gen Mishiba in order to
make most of his experience in the subject line of business. Specializes in providing Internet security
services, such as secure net service, system integration, other (See
OPERATION). On 01/Oct/2007, merged with
A&I System Co Ltd* and founded Lac Holdings Inc (See REGISTRATION). On 28/Nov/2007, the holding company, Lac
Holdings, entered into business and capital integration with KDDI to strengthen
business operations.
* Developer of mainframe & open systems, Tokyo, founded 1987, listed HERCULES, capital Yen 1,259 million, sales Yen 11,604 million, net profit Yen 354 million, total assets Yen 6,896 million, net worth Yen 2,607 million, employees 721, pres Toshio Makino (Figures as of Mar/2007)
FINANCIAL INFORMATION
The sales volume for Dec/2006 fiscal term amounted to Yen 6,454 million, a 10.5% up from Yen 5,841 million in the previous term. By divisions, Secure Net Service up 6.6% to Yen 4,044 million, due to expanded security management service, with consulting service men stationed at clients’ offices stressing on inspection and monitoring services; System Integration up 17.7% to Yen 2,410 million, thanks to increased demand from existing clients. The recurring profit was posted at Yen 309 million and the net profit at Yen 249 million, respectively, compared with Yen 204 million recurring profit and Yen 154 million net profit, respectively, a year ago.
(Jan/Sept/2007 results): Sales 5,188 million (up 11.7%), operating profit Yen 480 million (up 673.6%), recurring profit Yen 460 million (up 863.4%), net profit Yen 234 million (up 764.6%).
(%
compared with the same period last year)
For the current term ending Dec 2007 the recurring profit is projected at Yen 500 million and the net profit at Yen 330 million, on a 14.7% rise in turnover, to Yen 7,400 million.
Forecast of the consolidated financials of the parent,
Lac Holdings Inc, for Mar 2008 fiscal term (accounting term changed): Sales Yen
22,319 million, recurring profit Yen 1,752 million, net profit Yen 1,004
million.
The financial situation is considered FAIR and good for
ORDINARY business engagements. Max
credit limit is estimated at Yen 268.1 million, on 30 days normal terms.
REGISTRATION
Date Registered: Sept
1986
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 212,000
shares
Issued: 64,998
shares
Sum: Yen
1,159 million
Major shareholders (%): Lac Holdings Inc*(100)
* Holding company formed Oct/2007 by the integration of the
subject and A&I System Co Ltd, at the caption address, listed JASDAQ 6
HERCULES, capital Yen 1,000 million, employees 1,252, pres Gen Mishiba (founder
of the subject firm). Consolidated
forecast for Mar/2008 fiscal term: Sales Yen 22,319 million, recurring profit
Yen 1,752 million, net profit Yen 1,004 million.
Nothing detrimental is known as to the commercial morality
of executives.
OPERATION
Activities: Internet security service provider:
(Sales
breakdown by divisions):
Secure
Net Service (63%): penetration testing, security
operation, security policy consulting, custom solution to Government Sectors,
security service & maintenance, incident response, product support,
training, security technical advisor;
System
Integration (37%): system development & integration services
Clients: [Mfr, business firms] IBM Japan, Infosec Corp, American Family Life Ins, Sumisho Computer Systems, Jichiro Systems Co, other
No. of accounts: 500
Domestic areas of activities: Nationwide
Suppliers: [Internet system providers] Internet Security
Systems, Sumisho Computer Systems, Cosmo Computer System Softbank BB, .Japan
Automatic Development, etc.
Payment record: Regular
Location: Business area in Tokyo. Office premises at the caption address are leased and maintained
satisfactorily.
Bank References
Mizuho Bank (Ginza)
MUFG (Shimbashi-Ekimae)
Relations: Satisfactory
Financials
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FINANCES: (Non-Consolidated in million yen) |
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Terms Ending: |
31/12/2006 |
31/12/2005 |
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INCOME STATEMENT |
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Annual Sales |
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6,454 |
5,841 |
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Cost of Sales |
4,468 |
4,212 |
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GROSS PROFIT |
1,986 |
1,628 |
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Selling & Adm Costs |
1,632 |
1,400 |
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OPERATING PROFIT |
354 |
228 |
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Non-Operating P/L |
-45 |
-24 |
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RECURRING PROFIT |
309 |
204 |
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NET PROFIT |
249 |
154 |
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BALANCE SHEET |
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Cash |
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557 |
491 |
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Receivables |
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1,193 |
1,191 |
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Inventory |
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147 |
164 |
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Securities, Marketable |
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Other Current Assets |
358 |
231 |
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TOTAL CURRENT ASSETS |
2,255 |
2,077 |
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Property & Equipment |
220 |
235 |
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Intangibles |
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135 |
249 |
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Investments, Other Fixed Assets |
663 |
891 |
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TOTAL ASSETS |
3,273 |
3,452 |
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Payables |
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326 |
270 |
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Short-Term Bank Loans |
170 |
240 |
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Other Current Liabs |
384 |
409 |
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TOTAL CURRENT LIABS |
880 |
919 |
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Debentures |
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Long-Term Bank Loans |
30 |
270 |
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Reserve for Retirement Allw |
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Other Debts |
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5 |
50 |
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TOTAL LIABILITIES |
915 |
1,239 |
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MINORITY INTERESTS |
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Common stock |
1,159 |
1,159 |
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Additional paid-in capital |
812 |
812 |
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Retained earnings |
440 |
155 |
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Evaluation p/l on
investments/securities |
4 |
44 |
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Others |
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1 |
101 |
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Treasury stock, at cost |
(59) |
(59) |
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TOTAL S/HOLDERS` EQUITY |
2,357 |
2,212 |
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TOTAL EQUITIES |
3,273 |
3,452 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/12/2006 |
31/12/2005 |
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Cash Flows from Operating Activities |
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642 |
172 |
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Cash Flows from Investment
Activities |
-142 |
-354 |
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Cash Flows from Financing Activities |
-433 |
-447 |
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Cash, Bank Deposits at the Term End |
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557 |
491 |
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ANALYTICAL RATIOS Terms ending: |
31/12/2006 |
31/12/2005 |
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Net Worth (S/Holders' Equity) |
2,357 |
2,212 |
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Current Ratio (%) |
256.25 |
226.01 |
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Net Worth Ratio (%) |
72.01 |
64.08 |
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Recurring Profit Ratio (%) |
4.79 |
3.49 |
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Net Profit Ratio (%) |
3.86 |
2.64 |
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Return On Equity (%) |
10.56 |
6.96 |
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)