SEC

Basic Information

Stock Code
3741
Industry
Information and Communications
Category Detail
Systems & Software
Prefecture
Tokyo
Establishment Year
May 1970
Listing Year
June 2004
Official Website
https://www.sec.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Cross Cat, Quantum Solutions, NID, Core, Optimum, CRI Middleware, THE WHY HOW DO COMPANY, PCI Holdings, eSOL, Wing Arc, ACCESS, ISB, Genex

Overview

SEC is a Tokyo-based systems and software company established in 1970, with strengths in communication congestion avoidance technology, providing a wide range of software technologies centered on real-time software development.

Current Situation

SEC has made communication congestion avoidance solutions for the telecommunications industry its mainstay business in recent years, with a stable revenue base. It primarily engages in contract development of embedded software for mobile devices and communication equipment, maintaining competitiveness within the industry. In recent years, it has expanded R&D investments in robot technology, IoT, and AI fields, focusing on acquiring new technologies. It has built trusted relationships with numerous domestic and international customers, earning recognition for quality and technical prowess. It also addresses social sustainability through energy-saving technology development and work-style reforms. Its mid-term strategy from 2025 onward emphasizes pioneering new areas like AI embedded software and expanding its customer base to realize growth strategies. Additionally, space-related businesses and microcontroller development are riding tailwinds from national policies. Recent personnel moves are proactive, strengthening its management foundation.

Trivia

Interesting Facts

  • Founded in 1970, a pioneer among Japan's embedded software companies.
  • Rich track record in highway traffic control system development.
  • Contributes to national projects with rocket engine test control software.
  • Communication congestion avoidance technology adopted by numerous domestic and international mobile carriers.
  • Recently focusing on product development in AI and IoT fields.
  • Technology development-oriented company headquartered in Setagaya-ku, Tokyo.
  • Noted in Nikkei for attention in talent-related fields as well.
  • Lightweight AI inference engine technology highly evaluated in the industry.
  • Unique strength in applying technology to space and defense businesses.
  • Maintains long-term transactions with multiple major communication carriers.

Hidden Connections

  • Transactions with many domestic space development companies through space equipment control software.
  • Contributes to network stabilization among domestic mobile carriers with congestion avoidance technology.
  • Conducts joint research with multiple domestic universities on AI technology development.
  • Deep ties with prefectures and Ministry of Land, Infrastructure, Transport and Tourism through highway traffic control systems.
  • Gained trust through track record of technology provision to defense-related companies.
  • Collaborates with industry groups and vocational schools for engineer training.
  • Builds cooperative relationships in specific technologies while competing with peers.
  • Forms partnerships with domestic companies for IoT-related software development.

Future Outlook

Growth Drivers

  • Expansion in embedded software demand accompanying communication infrastructure renewal
  • Market expansion from spread of AI and IoT embedded technology
  • National policy promotion of space and defense businesses
  • Increasing needs for advanced industrial robots and automation
  • Growing demand for network optimization technology domestically and internationally
  • Needs to resolve IT engineer shortages amid diversifying work styles
  • Essentialization of advanced security technology
  • Demand for sustainable development and energy-saving technology
  • Expansion of government support for new technology development
  • Acceleration of overseas market expansion

Strategic Goals

  • Expand AI and IoT field sales ratio to over 50%
  • Strengthen overseas deployment of communication congestion avoidance technology
  • Increase space-related software orders to 2 billion yen annually
  • Address and promote sustainable development goals
  • Secure R&D expenses at over 1 billion yen annually
  • Strengthen competitiveness through engineer training and diversity promotion
  • Expand patent applications for security technology
  • Expand and continue community contribution activities
  • Increase new customer acquisitions to over 10 per year
  • Strengthen collaboration with government and academic institutions

Business Segments

Communication System Development

Overview
Maintains high share in embedded software development for the communications industry.
Competitiveness
Know-how in communication congestion avoidance technology
Customers
  • Mobile Phone Carriers
  • Communication Equipment Manufacturers
  • Infrastructure Operators
  • IT Service Companies
Products
  • Communication Congestion Avoidance Software
  • Embedded Communication Control Module
  • Network Optimization Tools

Control and Embedded System Development

Overview
Specializes in contract development of real-time control systems.
Competitiveness
Abundant track record in real-time control technology
Customers
  • Automobile Manufacturers
  • Industrial Machinery Manufacturers
  • Traffic Infrastructure Managers
  • Space-related Organizations
Products
  • Highway Traffic Control System
  • Rocket Engine Test Control
  • Industrial Real-time OS

AI and IoT Solutions

Overview
Focusing on embedded software development in AI and IoT fields.
Competitiveness
Integration of lightweight AI software and embedded technology
Customers
  • Robot Manufacturers
  • Manufacturing Companies
  • Medical Equipment Manufacturers
  • IT Companies
Products
  • Embedded AI Inference Engine
  • IoT Device Management Software
  • Robot Control Software

Software Verification and Evaluation

Overview
Provides quality verification services for embedded software.
Competitiveness
Advanced technical know-how and verification track record
Customers
  • IT Companies
  • Software Development Companies
  • Communication Equipment Manufacturers
Products
  • Software Verification Services
  • Evaluation Tool Development
  • Quality Assurance Consulting

Space and Special Equipment Development

Overview
Numerous achievements in real-time systems development for the space sector.
Competitiveness
Advanced special environment control technology
Customers
  • Space-related Companies
  • Research Institutions
  • Defense-related Companies
Products
  • Space Equipment Control Software
  • High-altitude Performance Test Systems
  • Special Environment Compatible Software

Technical Consulting

Overview
Consulting business related to software technology.
Competitiveness
Years of accumulated technology and multi-industry対応 capability
Customers
  • Manufacturing Industry
  • Communications Industry
  • IT Companies
  • Public Institutions
Products
  • Technical Evaluation Services
  • Technical Strategy Support
  • Education and Training Services

Development Support Tool Sales

Overview
Sells various tools for embedded software development.
Competitiveness
Technology products tailored to user needs
Customers
  • Software Development Companies
  • Embedded Engineers
  • Communication Equipment Manufacturers
Products
  • Debugging Tools
  • Performance Analysis Tools
  • Code Verification Tools

Security Solutions

Overview
Provides advanced security technology for embedded environments.
Competitiveness
Security technology specialized in communications
Customers
  • Communication Carriers
  • Financial Institutions
  • IT Companies
Products
  • Embedded System Security Measures
  • Communication Data Protection
  • Authentication Solutions

Education and Training Services

Overview
Provides education services for engineers.
Competitiveness
Curriculum specialized in practical skills
Customers
  • IT Companies
  • Universities and Vocational Schools
  • Public Institutions
Products
  • Embedded Software Technology Training
  • AI Technology Education
  • IoT Technology Guidance

Competitive Advantage

Strengths

  • Specialized expertise in communication congestion avoidance technology
  • Abundant track record in real-time embedded software development
  • Custom development capabilities for diverse industries
  • Advanced technology research in robotics and AI fields
  • Technology expansion into space and defense sectors
  • Trusted relationships gained through close customer ties
  • Strong engineer training and education system
  • Stable financial base
  • Reliability from TSE Prime listing
  • Strong market position in the communications industry

Competitive Advantages

  • Unique superiority in congestion avoidance algorithms for communications
  • High expertise in real-time OS and hardware integration technology
  • Technology specialized in embedded development for robotics and AI
  • Advanced development track record in space-related control systems
  • Flexible contract development system responding to multi-industry needs
  • Custom development capabilities through close customer contact
  • Quality assurance through technology verification services
  • Stable revenue from long-term transactions with communication carriers
  • Proactive entry into new technologies and markets
  • Lightweight technology for AI embedded inference engines

Threats

  • Delays in responding to rapid changes in communication technology
  • Intensified competition from major IT companies entering embedded fields
  • Risk of reduced orders due to customer in-house development
  • Challenges in talent retention and acquisition
  • Budget fluctuations in space and defense sectors
  • Technological innovations by global competitors
  • Increased development constraints from regulatory changes
  • Reduced development investments due to deteriorating economic environment
  • Difficulty maintaining competitiveness in AI field
  • Increased burden from diversifying customer technical requirements

Innovations

2023: Lightweight AI Inference Engine Development

Overview
Successfully developed low-power AI inference software mountable on microcontrollers.
Impact
Contributes to promoting AI adoption in embedded devices.

2022: Advanced Robot Control Software

Overview
Developed flexible motion control systems for industrial robots.
Impact
Improves automation efficiency in manufacturing sites.

2024: Enhanced IoT Communication Congestion Avoidance Technology

Overview
Developed and improved communication optimization technology for IoT devices.
Impact
Improved IoT device connection stability by 30%.

2021: Improved Space-related High-altitude Performance Test System

Overview
Enhanced compatibility for satellite and space equipment testing on existing models.
Impact
Achieved order expansion and improved customer satisfaction.

Sustainability

  • Promoting energy conservation in development processes
  • Thorough paperless operations and digital document management
  • Promoting employee diversity and improving work styles
  • Supporting technology education for local communities
  • Utilizing AI technology for environmental load reduction
  • CO2 reduction through remote work promotion
  • Strengthening environmental considerations in supply chains
  • Enhancing social trust through security measures
  • Reducing waste and promoting recycling
  • Sustainable growth through next-generation technology development