YoungLimWon Soft-Lab, 2nd Quarter Sales of 15.1 Billion Won “Expanding New Orders in the Second Half”
[Digital Daily Reporter Ian Na] YoungLimWon Soft-Lab’s sales in the second quarter of this year increased compared to the same period last year, but its operating profit dropped by half. The company expects that new contracts will be recognized as revenue in earnest in the second half of the year, which is anticipated to improve its overall performance.
“Expanding New Orders in the Second Half”
YoungLimWon Soft-Lab announced on the 14th that its sales in the second quarter of this year increased by 7.9% compared to the same period last year, reaching 15.09 billion won. During the same period, its operating profit was 360 million won and its net profit was 560 million won, representing decreases of 53.9% and 38.9%, respectively, compared to the same period last year. However, it succeeded in returning to profitability compared to the previous quarter, which showed a loss.
YoungLimWon Soft-Lab explained, “Large-scale projects and process innovation (PI) consulting fees from clients such as the Korea Industrial Safety Association, Sun & L Interior Vietnam, Taekwang Fujikin, and TMC were recognized as sales, resulting in a return to profitability. The new contracts signed in the second quarter will also be recognized as sales in the second half, which will positively impact performance improvement.”
YoungLimWon Soft-Lab’s Japanese subsidiary, Ever Japan, signed a business agreement with Japan’s Daeheung Electronics and Communications Co., Ltd., and launched ‘D-Ever Flex,’ a customized cloud enterprise resource planning (ERP) solution tailored to specific industries, in April. D-Ever Flex secured three customers in Japan within just three months of its launch.
System Ever Indonesia (SEI), a local subsidiary in Indonesia, is also focused on expanding orders. SEI is increasing its team of consultants and developers as its order performance improves, and it is also handling development projects for the domestic headquarters, thus supplementing the insufficient domestic development workforce.
Kwon Young-Bum, CEO of YoungLimWon Soft-Lab, stated, “As we expanded into the mid-sized company market, the larger contract sizes caused some delays in revenue recognition, but these will be fully reflected in the second half. We expect positive trends in sales and operating profit in the second half of the year, driven by significant contracts in Indonesia and continuous customer acquisition through strong partners in Japan.”
