Akihabara News (Tokyo) — Autonomous Control Systems Laboratory (ACSL) is Japan’s largest drone manufacturer and the only one with a stock market listing, but it is still struggling to achieve profitability.
In its latest financial report issued earlier this month, covering the January-March 2022 period, ACSL reported that its quarterly sales reached a record high of ¥952 million (US$7.5 million)–or over ¥1.3 billion (US$10.6 million) if its sales backlog was factored in.
Nevertheless, the profit margin on its drone sales was only about 14%. When R&D and operating expenses are accounted for, the firm suffered a net financial loss of about ¥400 million (US$3.2 million) during the quarter.
ACSL expects that these losses won’t get much worse during the course of this year, pinning its hopes on what it calls its four “application-specific” drone models.
Leading the pack is Soten, its aerial photography drone, which aims for a high standard of data security. The first units shipped in March, and by the end of that same month 475 had been sent to buyers.
ACSL has been hoping that data security allegations surrounding drones manufactured by the Chinese giant DJI will give them an opening to penetrate both the domestic and international markets.
An earlier ACSL drone model, the Fi4, is built for the inspection of sewers and drains, and they anticipate racking up sales in this niche market as well.
A third model–for which orders are now being taken–is the AirTruck delivery drone. Prototype versions are already operating in some rural parts of Japan as part of the SkyHub grocery delivery service. The AirTruck is noted for its easy loading process, capacity to carry a 5 kilogram payload, and the soft deposit of packages.
Finally, a fourth application-specific model designed for inspection of smokestacks and water-pressure towers is slated for release sometime later this year.
Looking beyond Japan, ACSL partnered last May with a firm called Aeroarc with ambitious plans to enter the India market. The partners anticipate that low manufacturing costs and concerns about Chinese drones will produce many new opportunities.
ACSL, however, is at this stage declining to make any specific financial projections regarding its potential India operations, which still need to gain official approvals.
ACSL’s managers project optimism about the future, declaring that the world has entered an “Era of the Drones” and that most macroeconomic factors suggest a bright future ahead.
On the other hand, it should also be noted that investors have not yet been equally enamored of its prospects. In May 2019, ACSL stock price reached a peak of ¥5,050 (US$39.90) per share, but it has steadily declined to only ¥1,905 (US$15.05) at the present time, a slide of over 62%.
ACSL was founded as a startup in November 2013, gained listing on the Tokyo Stock Exchange Mothers market in December 2018, and currently boasts about 75 employees.
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