MIRA
INFORM REPORT
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Report Date : |
24.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
SOFTBRAIN CO LTD |
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Registered Office : |
W Bldg 6F, 1-8-15 Konan Minatoku Tokyo 108-0075 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
November 1992 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Developer of Sales Support/E-Commerce Systems and Software |
RATING &
COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Maximum Credit Limit : |
YEN 94.1 Million |
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Status : |
Small Company |
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Payment Behaviour : |
Regular |
name & address
SOFTBRAIN CO LTD
REGD NAME: Softbrain KK
MAIN OFFICE: W Bldg 6F, 1-8-15
Konan Minatoku Tokyo 108-0075 JAPAN
Tel:
03-6717-2800 Fax: 03-67717-5835
URL: http://www.softbrain.co.jp/
E-Mail address: request@softbrain.co.jp
ACTIVITIES
Developer of sales support/e-commerce systems & software
BRANCH(ES)
Osaka, Nagoya, Sapporo
FACTORY(IES)
China (subsidiary)
CHIEF EXEC
MASAKI AKIYAMA, PRES & CEO
Yen Amount
In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 4,545 M
PAYMENTS REGULAR CAPITAL Yen 823 M
TREND STEADY WORTH Yen 237 M
STARTED 1992 EMPLOYES 424
COMMENT
DEVELOPER OF SALES
FORCE AUTOMATION (SFA) SOFTWARE, CUSTOMER RELATIONS MANAGEMENT (CRM) SYSTEM,
OTHERS.
FINANCIAL
SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY
BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT
YEN 94.1 MILLION, 30 DAYS NORMAL TERMS.
Forecast
(or estimated) figures for 31/12/2008 fiscal term
HIGHLIGHTS
The subject company was established by Bunshu So, ch at the firm, who developed construction/civil engineering analysis & peddled it. This is a developer of sales support/e-commerce systems for mobile information terminals. Develops sales force automation (SFA) software, customer relations management (CRM) system, other. Uniquely developed e-Sales Manager system, a package of services that includes surveying current practices, consulting, process design, software configuration and the training & effectiveness measurement tools. Bolsters marketing capabilities thru tie-ups with Sony & NTT group firms. Making in-depth plowing in internal control software market at JV with Giuliani Partners
FINANCIAL INFORMATION
The sales volume for Dec/2007 fiscal term amounted to Yen 4,546 million, a 4.9% up from Yen 4,335 million in the previous term. Sales support software was steady for large firms, while those for medium/small firms rose led by ASP. Active development at China works also contributed. The recurring profit was posted at Yen 237 million but registered Yen 251 million net losses consecutively from the last term. The net losses account for the write-offs of Yen 731 million investment evaluation losses & Yen 125 million NC’s allowances. This compares with Yen 18 million recurring profit and Yen 279 million net losses, respectively, a year ago
(Jan/Apr/2008 results): Sales Yen 1,003 million (down 21.6%), operating losses Yen 46 million, recurring losses 59 million, net losses Yen 30 million. (% compared with the corresponding period a year ago. Competition among the trade became harsher. New software of e-Sales Manager was delayed until after April. The rising costs of development & operations hurt profitability.
For the current term ending Dec 2008 the recurring profit is projected at Yen 500 million and the net profit at Yen 280 million, on a 10% rise in turnover, to Yen 5,000 million.
The financial situation is considered FAIR and good for ORDINARY business engagements. Max credit limit is estimated at Yen 94.1 million, on 30 days normal terms.
REGISTRATION
Date Registered: Nov 1992
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 1,200 million shares
Issued: 309,550 shares
Sum: Yen 823 million
Major shareholders (%)
Bunshu So (7.8), Transcosmos Inv & Business Dev (5.6), MAC Corporate Governance Inv (3.2), Taisuke Togashi (1.8), Japan Trustee Services T (1.7), Masayuki Shichida (1.3), Bear Steams & Co (1.1), Master Trust Bank of Japan T (0.9), Merrill Lynch Int’l Equity Derivatives (0.9), Daiwa Securities (0.8); foreign owners (9.7).
No. of shareholders: 16,610
Listed on the S/Exchange (s) of
Tokyo
Managements
Masaki Akiyama, pres; Hirofumi Toyoda, s/mgn dir; Shinji Komaki, s/mgn dir; Akiyoshi Satoh, dir; Masayuki Abe, dir; Rikimaru Hasebe, dir; Tomoshi Kobayashi, dir; Teppei Kinoshita, dir; Tetsushi Yamasaki, dir
Nothing detrimental is known as to the commercial morality of executives.
Related companies
Softbrain Field Co, Softbrain Service Co, Softbrain Integration Co, Softbrain Offshore, other.
OPERATION
Activities: Develops non-mfg sales force automation (SFA) software, customer relations management (CRM) system, e-Sales Manager system software, sales support/e-commerce systems for mobile information terminals, others (--100%), .
Clients
Business firms, financial institutions, others
No. of accounts
300
Domestic areas of activities
Nationwide
Suppliers
[Mfrs, developers] Softbrain Software (Beijing) Co, System Kohboh Tokyo, other
Payment record
Regular
Location
Business area in Tokyo. Office premises at the caption address are leased and maintained satisfactorily.
Bank References
SMBC (Akasaka)
MUFG (Shintomicho)
Relations: Satisfactory
Financials
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/12/2007 |
31/12/2006 |
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INCOME STATEMENT |
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Annual Sales |
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4,546 |
4,335 |
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Cost of Sales |
1,952 |
1,707 |
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GROSS PROFIT |
2,593 |
2,627 |
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Selling & Adm Costs |
2,229 |
2,479 |
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OPERATING PROFIT |
363 |
148 |
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Non-Operating P/L |
-126 |
-130 |
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RECURRING PROFIT |
237 |
18 |
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NET PROFIT |
-251 |
-279 |
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BALANCE SHEET |
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Cash |
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661 |
703 |
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Receivables |
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693 |
997 |
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Inventory |
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76 |
119 |
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Securities, Marketable |
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Other Current Assets |
158 |
96 |
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TOTAL CURRENT ASSETS |
1,588 |
1,915 |
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Property & Equipment |
158 |
213 |
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Intangibles |
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499 |
356 |
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Investments, Other Fixed Assets |
1,074 |
1,827 |
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TOTAL ASSETS |
3,319 |
4,311 |
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Payables |
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156 |
170 |
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Short-Term Bank Loans |
774 |
53 |
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Other Current Liabs |
467 |
589 |
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TOTAL CURRENT LIABS |
1,397 |
812 |
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Debentures |
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1,000 |
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Long-Term Bank Loans |
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24 |
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Reserve for Retirement Allw |
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Other Debts |
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0 |
41 |
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TOTAL LIABILITIES |
1,397 |
1,877 |
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MINORITY INTERESTS |
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Common
stock |
826 |
823 |
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Additional
paid-in capital |
616 |
614 |
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Retained
earnings |
558 |
850 |
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Evaluation
p/l on investments/securities |
24 |
(14) |
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Others |
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160 |
161 |
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Treasury
stock, at cost |
(263) |
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TOTAL S/HOLDERS` EQUITY |
1,921 |
2,434 |
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TOTAL EQUITIES |
3,319 |
4,311 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/12/2007 |
31/12/2006 |
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Cash
Flows from Operating Activities |
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465 |
25 |
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Cash
Flows from Investment Activities |
53 |
-2,044 |
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Cash Flows
from Financing Activities |
-561 |
1,045 |
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Cash,
Bank Deposits at the Term End |
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661 |
703 |
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ANALYTICAL RATIOS Terms
ending: |
31/12/2007 |
31/12/2006 |
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Net
Worth (S/Holders' Equity) |
1,921 |
2,434 |
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Current
Ratio (%) |
113.67 |
235.84 |
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Net
Worth Ratio (%) |
57.88 |
56.46 |
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Recurring
Profit Ratio (%) |
5.21 |
0.42 |
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Net
Profit Ratio (%) |
-5.52 |
-6.44 |
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Return
On Equity (%) |
-13.07 |
-11.46 |
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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%)