Asterisk

Basic Information

Stock Code
6522
Industry
Electrical Equipment
Category Detail
Information & Communication Equipment
Prefecture
Osaka Prefecture
Establishment Year
September 2006
Listing Year
September 2021
Official Website
https://www.asx.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Crema, Sirius Vision, Toshiba Tec, Optoelectronics, Takayoshi HD, GLOE

Overview

Asterisk is a leading company in the electrical equipment industry founded in 2006, centering its business on mobile terminal-linked products utilizing item recognition technologies such as barcodes and RFID.

Current Situation

Asterisk recorded consolidated sales of approximately 1.76 billion yen for the fiscal year ended August 2023, posting a loss on the profit side but continuing steady technology development and market expansion. The core AsReader business leverages image recognition and RFID to provide solutions integrated with iOS and Android devices, boasting strengths in compact item recognition technology. It has a proven track record of supplying equipment to major corporations such as Toyota Motor Corporation and reached a settlement in a patent lawsuit with Fast Retailing, with a strong focus on intellectual property management. Services are also provided via cloud-based SaaS models, with pioneering achievements in mobile POS systems and payment applications. Through a capital and business alliance with Itochu Pulp & Paper in 2019, it has strengthened its funding and distribution channels. In the future, it plans overseas expansion via local subsidiaries in North America and Europe, actively pursuing global market development. Moving forward, it aims to expand products and services for improving customer operations by focusing on advancements in barcode readers and RFID technology amid IoT and DX trends.

Trivia

Interesting Facts

  • Pioneering company in the iPhone barcode reader market.
  • Relatively new IT-related company established in 2006.
  • Fabless model with manufacturing outsourced overseas.
  • Has a track record of large-scale deliveries to Toyota Motor Corporation.
  • IP strategy gaining attention in the industry following patent litigation.
  • Attracting investor attention as a notable Growth Market stock.
  • Founding members are three high school classmates.
  • First company in Japan to introduce mobile POS systems.
  • Global expansion with subsidiaries outside Japan.
  • Self-developed AsReader product has sales exceeding 200,000 units.

Hidden Connections

  • Deep ties to overseas paper industry through capital alliance with Itochu Pulp & Paper.
  • Resolved patent dispute with Fast Retailing, potential for business collaboration.
  • Chinese subsidiaries in Dalian and Shenzhen serve as Asian development hubs.
  • Significant influence as a pioneer in promoting mobile POS adoption in Japan.
  • Deep involvement with automotive industry through equipment supply to Toyota Motor Corporation.
  • Competes with industry leaders like Toshiba Tec while exploring joint market formation.
  • Increasing focus on logistics services amid expansion of e-commerce platforms like Amazon.
  • Ensures reliability through auditing by PwC Kyoto Audit Corporation.

Future Outlook

Growth Drivers

  • Expansion of automatic recognition demand due to IoT and DX adoption
  • Increasing RFID technology needs in global markets
  • Promotion of mobile POS adoption in Japan and abroad
  • Strengthened integration with cloud services
  • Ongoing differentiation through patented technology

Strategic Goals

  • Sustainable growth with overseas sales ratio exceeding 30%
  • Doubling sales of IoT-related products
  • Launch of numerous sustainability-compliant products
  • 20% annual increase in cloud service contracts
  • Strengthened acquisition of new customers through custom development

Business Segments

Automatic Recognition Devices for Retail

Overview
Provides automatic recognition products and systems to support retail business efficiency.
Competitiveness
Advanced integration of smartphone connectivity and wireless technology
Customers
  • Retail Chains
  • Supermarkets
  • Convenience Stores
  • Specialty Stores
Products
  • Barcode Readers
  • RFID Readers
  • Mobile POS Systems
  • Cloud Applications

Traceability Systems for Manufacturing

Overview
Supports process management and traceability system construction in manufacturing lines.
Competitiveness
Flexible response through custom development contracts
Customers
  • Automotive Manufacturing
  • Electronic Components Manufacturers
  • Food Manufacturers
Products
  • RFID Systems
  • Barcode Systems
  • Custom Business System Development

Logistics Management Solutions

Overview
Provides solutions aimed at improving efficiency and accuracy in logistics operations.
Competitiveness
On-site consulting and device integration
Customers
  • Logistics Warehouses
  • Transportation Companies
  • Sales Warehouses
Products
  • RFID/Barcode Reading Devices
  • Business Mobile Apps
  • System Consulting

Self-Checkout Solutions for Retail and Distribution

Overview
Provides technology to enhance self-checkout efficiency and customer experience.
Competitiveness
High-precision RFID reading technology utilizing patented innovations
Customers
  • Major Retailers
  • Department Stores
  • Specialty Store Chains
Products
  • RFID Tag Reading Systems
  • Automatic Recognition Devices
  • Customer Flow Analysis Software

Manufacturing and Sales Support via Overseas Subsidiaries

Overview
Supplies products to overseas customers and handles localization.
Competitiveness
Rapid sales expansion through local subsidiaries
Customers
  • US Market
  • European Market
  • Asian Market
Products
  • AsReader Product Line
  • Customizations for Overseas Markets
  • Local Sales and Support

Competitive Advantage

Strengths

  • Possession of advanced item recognition technology
  • Strength in smartphone integration
  • Global sales network
  • Patent management and IP utilization capabilities
  • Flexible custom development structure
  • Strong capital and business alliances
  • Local expansion capabilities via overseas bases
  • Diverse industry customer base
  • Cloud SaaS service rollout
  • Pioneer in mobile POS market

Competitive Advantages

  • Dedicated terminal integration technology compatible with iOS/Android
  • Flexible production via fabless model
  • IP strategy for RFID and barcode products
  • Reliability from transaction history with major corporations
  • Sales and support network across multiple regions
  • Specialization in high-precision RFID tag reading technology
  • Expansion of cloud-based mobile POS business
  • Pioneer in smartphone-attachable barcode readers
  • Custom software development adding value to item recognition
  • Capital alliances with Itochu Pulp & Paper etc. promoting technology development

Threats

  • Expansion of entry by major electronics manufacturers
  • Need to keep pace with rapid technological innovation
  • Price pressure from intensifying market competition
  • Operational risks of overseas bases
  • Patent litigation and IP risks
  • Risk of investment restraint due to economic fluctuations
  • Disruptions in global supply chains
  • Changes in laws and regulations or certification requirements
  • Rapid technology replacement cycles
  • Challenges in talent acquisition

Innovations

2024: Enhanced Development of AsReader IoT Integration Technology

Overview
Advanced IoT integration functions for item recognition devices to expand real-time data utilization.
Impact
Promotes business efficiency improvements and new service launches

2023: Advanced Image Recognition Algorithms

Overview
Improved image recognition performance using AI to enable multi-industry compatibility.
Impact
Enhances multi-purpose product use and contributes to market expansion

2022: Strengthened Technology License Management for RFID Self-Checkout

Overview
Transferred patent rights to NIP and stabilized revenue base through licensing operations.
Impact
Successfully reduced litigation risks and expanded IP revenue

2021: Expansion of North American Subsidiary Product Line

Overview
US AsReader Corp. strengthened product development to meet local needs.
Impact
Contributed to increased overseas sales ratio

2020: New Features Added to Cloud SaaS Services

Overview
Implemented cloud functions linked with business consulting.
Impact
Improved customer satisfaction and contract renewal rates

Sustainability

  • Promotion of energy-efficient products
  • Active use of recyclable materials
  • Strengthened environmental compliance at overseas bases
  • Contribution to paper resource reduction through digital technology
  • Promotion of employee diversity