Trend Micro Incorporated

more or less as expected. And then below that, we have operating income of 8.8% and 13%. This is compared to the previous quarter. It is a lot lower, and I'm sure that we'll get questions about this. And in the purple part, you can see the answer, pre-capped numbers. So more than 100 billion in terms of net sales, up by 30% a year, pre-gap operating income was at 41.1 billion yen. Now the variable revenue, so this is related to the pre-gap revenue as well as the profit increase, so this is a biggest factor. pre-gap performance was very strong. And this is why the variable formulation changed. So the difference between pre-gap and non-pre-gap is quite big. But I'm sure that Kevin Simpson will explain this more in detail later on.

So I would like to move on to the next part.

There are some negative factors. Outside of Japan, for consumer business, we are outsourcing their online settlement payment. And the outsourcer, Little River in the United States, had a problem with its financing funding. and recovery of accounts receivable became impossible, which translated into 1.7 billion. This is deducted from the pre-gap revenue, and without that, pre-gap growth would have been 22%. Now, that's the pre-gap number, but the gap in its sales number will be affected in this fiscal year. impact of the non-recoverable AR, and also we have switched to another vendor from Little River, which means that the renewal extension will have to be applied automatically, which means that approximately 20 million or more negative impacts will be seen in the net sales. So, negative growth from the previous year, and this is one of the factors behind this.