GCA Corp. lowered its consolidated earnings forecast for the fiscal year ended Dec. 31, 2017, as its U.S. business saw a drop in the volume of transactions and revenue.
The company said Jan. 31 it now expects its net income to come in at ¥1.38 billion, down 42.5% from its previous forecast of ¥2.4 billion. The company expects revenues to come in at ¥19.75 billion, down 1.2% from its previous forecast of ¥20 billion, while its operating income is expected to clock in at ¥2.04 billion, down from the previous forecast of ¥3.6 billion.
The company said the decline was driven by a 50% drop in announced, negotiated technology M&A transactions for the entire market in the U.S. in 2017. Also contributing to the decline were a number of engaged transactions that were pushed into 2018. The company's Japan region also saw a drop in transaction volume and revenue.
As of Jan. 31, US$1 was equivalent to ¥109.27.
