Nomura Micro Science (6254) FY2026 Q3 Earnings Report

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Executive Summary

Although the Company secured increases in revenue and earnings, growth in Operating Income fell below growth in Revenue, and the Operating Income margin declined slightly. Revenue was ¥410.5B (+28.9% YoY), Operating Income was ¥46.4B (+18.0%), Ordinary Income was ¥38.9B (+38.1%), and Net Income was ¥28.7B (+38.7%). The Operating Income margin was 11.3%, approximately 1.0pt lower than in the same period of the previous year. While the substantial increase in revenue was driven by the rapid expansion of the U.S. business, profitability-related challenges were also evident in other regions. The fact that growth in Ordinary Income and Net Income exceeded growth in Operating Income was attributable to the recognition of ¥8.3B in foreign exchange gains.

Factors Affecting Earnings

【Revenue】Revenue increased substantially to ¥410.5B (+28.9% YoY). By region, the U.S. surged to ¥84.2B (sales to external customers, +263.7% YoY), becoming the core driver of overall growth. Japan remained solid at ¥188.4B (+11.9%), while South Korea expanded rapidly to ¥70.6B (+161.6%). In contrast, China declined to ¥48.4B (-31.8%) and Taiwan declined to ¥18.9B (-35.2%), resulting in divergent performance across regions.

【Profit and Loss】Operating Income increased to ¥46.4B (+18.0%), securing earnings growth; however, the Operating Income margin declined to 11.3% from approximately 12.3% in the same period of the previous year. Segment profit margins were high in the U.S. at 24.7% and Taiwan at 31.1%, while they were low in Japan at 7.9%, South Korea at 4.0%, and China at 0.4%. In particular, China’s segment profit deteriorated substantially, declining 97.6% YoY. Ordinary Income was ¥38.9B (+38.1%), boosted by ¥8.3B in foreign exchange gains, while ¥17.6B in interest expenses weighed on earnings. Net Income was ¥28.7B (+38.7%), with limited impact from extraordinary gains and losses. In conclusion, the Company achieved increases in revenue and earnings, but a structural decline in the Operating Income margin and profitability disparities among regions were evident.

Segment Analysis

The U.S. accounted for 44.7% of segment profit (¥44.6B, before elimination of intersegment transactions), forming the core of the business. U.S. segment profit expanded rapidly to ¥20.8B (approximately 20.5 times YoY), and, together with the 263.7% increase in sales to external customers, represented the largest driver of growth. Japan’s revenue increased by ¥18.8B, but profit declined to ¥16.9B (-9.7% YoY). South Korea achieved a doubling of revenue but recorded segment profit of ¥2.9B (-10.6% YoY), resulting in higher revenue but lower profit. China’s segment profit nearly disappeared, falling to ¥0.2B (-97.6%), while Taiwan’s profit also contracted to ¥5.9B (-36.3%). Improving profitability in regions other than the U.S. is therefore a challenge for the overall profit margin.

Key Financial Indicators

【Profitability】The Operating Income margin of 11.3% and Net Income margin of 7.0% were both slightly below the same period of the previous year, but remained at favorable double-digit and solid levels, respectively. The gross margin was 22.4%, and the Company maintained a double-digit Operating Income margin even after deducting the SG&A expense ratio of 11.1%.【Cash Flow Quality】Accounts receivable of ¥779.3B accounted for 71.0% of total assets. Annualized DSO was approximately 520 days and the CCC was approximately 501 days, indicating a structural difficulty in converting revenue growth directly into cash collections. Work in process of ¥39.7B accounted for approximately 74.2% of inventories, indicating a high proportion of assets related to projects in progress.【Investment Efficiency】ROE was 7.4%, decomposed into a Net Income margin of 7.0% × total asset turnover of 0.374 × financial leverage of 2.84x. The low asset turnover was a constraining factor on capital efficiency.【Financial Soundness】The Equity Ratio was 35.2% (up from the equivalent of 30.3% in the previous year), and the current ratio was approximately 145.4%. Interest-bearing debt of ¥501.9B consisted entirely of short-term borrowings, and its ratio to cash and deposits of ¥136.6B was only 0.27x. Interest coverage was approximately 2.6x against interest expenses of ¥17.6B, indicating relatively high sensitivity to interest costs.

Cash Flow Analysis

Although cash flow statement data was not disclosed, an analysis of funding trends based on changes in the balance sheet indicates that cash and deposits declined to ¥136.6B from ¥173.3B in the previous year despite the increase in revenue. This reflects the pressure on working capital from the substantial accounts receivable balance of ¥779.3B and inventories, including ¥39.7B in work in process. Short-term borrowings of ¥501.9B remained broadly flat from ¥521.6B in the previous year, indicating the continuation of a structure in which funding needs associated with revenue growth are primarily financed through short-term borrowings. Accounts payable of ¥75.8B was small relative to accounts receivable, and payment terms to suppliers and subcontractors alone were insufficient to absorb the working capital burden. Overall, the increase in revenue has not necessarily translated into an accumulation of cash on hand, and progress in collecting receivables and monetizing work in process will be key to future cash management.

Quality of Earnings

The ¥38.9B increase in Ordinary Income was significantly supported by ¥8.3B in foreign exchange gains recorded as non-operating income. This was the primary reason that growth in Ordinary Income (+38.1%) exceeded growth in Operating Income (+18.0%). Non-operating expenses included ¥17.6B in interest expenses, resulting in a net non-operating loss of ¥7.5B. Extraordinary income was ¥0.2B, mainly from gains on the sale of investment securities, while extraordinary losses were less than ¥0.04B and therefore small. The impact of one-time items on Net Income of ¥28.7B was limited. On the other hand, the presence of substantial accrual items, including accounts receivable of ¥779.3B and work in process of ¥39.7B, indicates that a significant portion of recognized profit has not yet been converted into cash. Monitoring progress in collection and acceptance is therefore important in evaluating earnings quality. Comprehensive income was ¥39.8B, exceeding Net Income of ¥28.7B. The difference was mainly attributable to foreign currency translation adjustments of ¥9.8B, as translation gains on overseas subsidiaries into yen boosted comprehensive income.

Earnings Forecasts and Guidance

The full-year Company forecasts are Revenue of ¥600.0B, Operating Income of ¥62.0B, and Ordinary Income of ¥51.8B. Q3 cumulative progress rates were 68.4%, 74.8%, and 75.1%, respectively. Progress on the profit lines was broadly in line with the standard benchmark of approximately 75%, but Revenue progress was 6.6pt below this level, requiring Revenue of ¥189.5B to be recognized in Q4. This assumes a Q4-weighted recognition pattern consistent with the Company’s plan, and achievement requires an implicit Q4 Operating Income margin of 8.2%. No revisions have been made to the earnings forecasts, and the Company’s plan remains unchanged.

Shareholder Returns

The Q2 dividend was ¥20.00 per share, and the Payout Ratio based on Q3 cumulative Net Income of ¥28.7B was 28.3%. The full-year dividend forecast is ¥70.00, and the forecast Payout Ratio calculated using forecast full-year Net Income of ¥38.4B and approximately 37.99 million average shares outstanding during the period is approximately 69.3%. The forecast Payout Ratio is above the benchmark of 60%. In addition to achieving the full-year plan, working capital management through the collection of accounts receivable and monetization of work in process will affect the financial capacity supporting the dividend. No revisions have been made to the dividend forecast.

Risk Factors

1. Risk of prolonged working capital cycle: Annualized DSO has reached approximately 520 days and the CCC approximately 501 days, while accounts receivable of ¥779.3B accounts for 71.0% of total assets. Delays in the acceptance, billing, and collection of large projects could lead to additional borrowing or deterioration in cash management.

2. Dependence on short-term borrowings and refinancing risk: Interest-bearing debt of ¥501.9B consists entirely of short-term borrowings, and its ratio to cash and deposits of ¥136.6B is only 0.27x. Interest coverage is approximately 2.6x, indicating limited resilience to higher interest rates or changes in refinancing terms.

3. Regional profitability disparities: Segment profit in China declined 97.6% YoY, while Taiwan also declined 36.3% YoY; Japan and South Korea likewise posted lower profit. The structure in which the U.S. accounts for 44.7% of segment profit is a growth engine, but also indicates increasing dependence on a specific region.

Industry Benchmark (For Reference; Compiled by the Company)

Industry Benchmark (manufacturing)

Profitability and Returns

Both the Operating Income margin and Net Income margin exceeded the industry median, placing profitability in the upper tier of the industry.

Growth and Capital Efficiency

The Revenue growth rate substantially exceeded the industry median, positioning the Company among the industry’s most outstanding revenue-growth companies.

※Source: Compiled by the Company

Key Takeaways from the Earnings Results

1. Revenue increased 28.9% YoY and Operating Income increased 18.0% YoY, achieving higher revenue and earnings. Progress against the full-year Operating Income forecast was 74.8%, broadly in line with the standard level. The rapid expansion of the U.S. business (sales to external customers +263.7%) was the core driver of growth.

2. The Operating Income margin of 11.3% exceeded the industry median but declined YoY, with lower profit in China, South Korea, and Japan weighing on the overall margin. Improving profitability in regions other than the U.S. will be a key focus going forward.

3. The working capital structure, characterized by annualized DSO of approximately 520 days, a CCC of approximately 501 days, and complete dependence on short-term borrowings, indicates that revenue growth does not necessarily translate directly into improved cash on hand. The sustainability of the full-year dividend forecast of ¥70.00 (forecast Payout Ratio of approximately 69.3%) will depend on achievement of the earnings plan and progress in collecting receivables.

Theoretical Share Price (Reference Value)

Sensitivity: ¥999–¥1,054 at ±1% in the cost of equity, and ¥1,025–¥1,027 at ±0.1 in ω.

Notes:

• Net assets as of the quarter-end were used (there is a timing discrepancy relative to the full-year forecast).

(Calculation model: Residual Income Model (Ohlson-type, explicit 5-year fade) / Interest rate reference month: 2026-07 / Mechanically calculated solely from publicly disclosed data; this is not a forecast of the market share price or a recommendation of any specific investment action, and does not forecast or guarantee future share prices.)

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This report is an earnings analysis document automatically generated by AI based on XBRL earnings release data. It does not recommend investment in any specific security. The industry benchmarks are reference information compiled by the Company based on publicly disclosed earnings data. Investment decisions should be made at your own responsibility, after consulting a professional as necessary.

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AI Financial Analysis

Executive Summary

FY2026 Q3 earnings were strong at the operating level, with revenue growth led by the US and Korea, although gross-margin dilution, elevated financing costs and an unusually long cash-conversion cycle remain material constraints. Cumulative Q3 revenue rose 28.9% YoY to ¥41.05bn. Operating income increased 18.0% to ¥4.64bn, while operating margin declined 105bp YoY to 11.3%. Gross profit increased 12.3% to ¥9.21bn, but gross margin compressed 331bp to 22.4% as cost of sales grew faster than sales. SG&A expenses rose 7.1% to ¥4.57bn, materially below revenue growth, evidencing favorable operating leverage below the gross-profit line. Ordinary income rose 38.1% to ¥3.89bn and net income increased 38.7% to ¥2.87bn. Net margin improved 49bp YoY to 7.0%, despite the lower operating margin. The principal support for the stronger ordinary-income growth was ¥0.83bn of foreign-exchange gains, equivalent to 17.8% of operating income. This was partly offset by ¥1.76bn of interest expense, which consumed 38.0% of operating income. Interest coverage was consequently only 2.63x, a level that requires monitoring despite positive earnings momentum. The effective tax rate was 26.7%, producing a normal tax burden factor of 0.733. Profit before tax and net income were not materially affected by extraordinary items, as the gain on sale of investment securities was only ¥0.017bn. US segment revenue expanded 263.7% YoY to ¥8.41bn and segment profit increased more than twentyfold to ¥2.08bn, making it the largest profit contributor in the period. Korea also delivered strong revenue growth of 161.6% to ¥7.06bn, while China revenue fell 31.8% and its segment margin weakened sharply. The full-year forecast implies Q4 revenue of ¥18.95bn and operating income of ¥1.56bn; Q3 cumulative progress is broadly consistent with the operating-income target. The financial outlook therefore depends on execution of the large Q4 revenue requirement, collection of receivables, maintenance of US profitability, foreign-exchange conditions and refinancing of short-term borrowings.

Profitability Analysis

The reported DuPont ROE is 9.9%, comprising a 7.0% net profit margin, 0.499x asset turnover and 2.84x financial leverage. The return profile is therefore supported meaningfully by leverage rather than by a high-margin or high-turnover balance-sheet model. The 7.0% net margin is within a solid 5-10% range, but below the 10% threshold generally associated with excellent profitability. Operating margin of 11.3% is also sound, but its 105bp YoY contraction demonstrates that sales growth did not fully translate into operating-margin expansion. Gross margin compressed from 25.7% to 22.4%, the largest adverse change in the earnings structure, indicating that project or geographic mix and/or input and execution costs outweighed revenue scale benefits. Conversely, SG&A increased only 7.1% against 28.9% revenue growth, reducing the SG&A-to-sales ratio from 13.4% to 11.1% and partially offsetting gross-margin pressure. The five-factor decomposition shows a normal tax burden of 0.733 but an interest burden of 0.842, confirming that financing costs materially dilute EBIT conversion into pre-tax profit. Interest expense increased 30.4% YoY to ¥1.76bn, faster than operating income growth. Japan remained the core business by external revenue at ¥18.83bn, but its segment profit declined 9.7% to ¥1.69bn and its segment margin fell from 10.1% to 7.9%. The US became the largest segment by operating-income contribution, generating ¥2.08bn of profit and a 24.6% margin, compared with 4.1% in the prior-year period. Taiwan retained a high 31.1% segment margin, despite revenue declining 35.2% to ¥1.89bn. Korea's segment margin declined from 10.0% to 4.0% as the rapid increase in revenue did not convert proportionately to profit. China generated only ¥0.17bn of segment profit, with margin falling from 10.0% to 0.4%, making margin normalization there a key profitability issue. The US profitability surge is highly favorable, but its sustainability should be assessed through project mix, execution performance and the timing of large system-recognition milestones.

Growth Assessment

Growth is geographically concentrated rather than broad-based. External revenue increased by ¥9.19bn YoY, with the US contributing ¥6.10bn and Korea contributing ¥4.36bn, more than offsetting a ¥2.26bn decline in China and a ¥1.03bn decline in Taiwan. Japan revenue grew 11.9% to ¥18.83bn, providing a comparatively stable domestic base. US segment profit expanded by ¥1.98bn YoY and accounted for 44.7% of consolidated operating income, versus 2.5% in the prior-year period. This concentration substantially raises the importance of continued US project execution. China’s 31.8% revenue decline and near-breakeven segment margin indicate weaker regional earnings conversion and reduce diversification benefits. The addition of the Singapore-based Other segment establishes a new regional platform, although it recorded a ¥0.024bn segment loss in Q3. The company has retained its full-year forecast of ¥60.00bn revenue, ¥6.20bn operating income, ¥5.18bn ordinary income and ¥3.84bn net income. Revenue progress stands at 68.4% of the full-year target, 6.6 percentage points below the standard 75% Q3 run-rate. Operating-income progress is 74.8%, essentially aligned with the standard run-rate, while ordinary-income progress is 75.1% and net-income progress is 74.7%. The implied Q4 revenue of ¥18.95bn is substantially above the average quarterly revenue recognized through Q3, indicating a backend-loaded delivery schedule. The implied Q4 operating margin is 8.2%, below the Q3 cumulative 11.3% margin, suggesting the forecast embeds a more conservative closing-quarter margin profile. Growth quality is supported by operating-income growth and restrained SG&A growth, but the stronger net-income outcome also reflects foreign-exchange gains rather than solely improved underlying operating profitability.

Financial Health

Liquidity is adequate on conventional current-ratio measures, with a current ratio of 145.4% and quick ratio of 145.0%. Working capital totaled ¥31.26bn, indicating that current assets exceed current liabilities by a meaningful amount. However, the composition of liquidity is heavily concentrated in trade receivables of ¥77.93bn, representing 71.0% of total assets and 77.9% of current assets. Cash and deposits were ¥13.66bn, equivalent to only 0.27x short-term borrowings of ¥50.19bn. All reported interest-bearing debt is short term, creating a refinancing-risk exposure because 100% of borrowings mature within the current-liability horizon. The short-term debt ratio is materially above the 40% warning benchmark, and the cash/short-term-debt ratio is below the 0.5x stress threshold. Current assets exceed current liabilities, so there is no immediate current-ratio breach, but the maturity profile depends on timely receivable conversion and continued access to bank financing. Debt-to-equity was 1.84x, below the 2.0x explicit aggressive-leverage warning threshold but elevated for a project-oriented equipment and engineering business. Debt-to-capital was 56.5%, approaching the 60% concern benchmark. Interest coverage of 2.63x is below the 3x concern benchmark, making the funding structure sensitive to interest rates and volatility in operating profit. Equity increased 4.4% YoY to ¥38.66bn, while total liabilities declined 10.9% to ¥71.06bn, modestly improving capitalization. PPE increased 31.1% to ¥6.50bn, but remains only 5.9% of total assets, maintaining an asset-light balance-sheet structure. Contract liabilities fell 68.9% YoY to ¥2.90bn, which reduces the customer-advance funding buffer relative to the prior-year period. Lease obligations of ¥1.66bn are included within non-current liabilities and should be considered alongside debt obligations.

Notable B/S Changes

Property, plant and equipment: +¥1.54bn (+31.1%) to ¥6.50bn - increased investment in operating capacity or project-support infrastructure; still only 5.9% of total assets. Work in process: +¥1.96bn (+97.3%) to ¥3.97bn - reflects a higher volume of projects under execution and increases the importance of timely completion and acceptance. Finished goods inventory: -¥0.23bn (-42.2%) to ¥0.32bn - lowers finished-goods carrying exposure, while the inventory mix remains heavily weighted toward WIP. Contract liabilities: -¥6.43bn (-68.9%) to ¥2.90bn - materially lower customer advances reduce a source of project working-capital funding. Non-current lease obligations: +¥1.16bn (+233.0%) to ¥1.66bn - increases fixed contractual commitments alongside short-term bank borrowing. Total liabilities: -¥8.71bn (-10.9%) to ¥71.06bn - improves capitalization, although the remaining liability structure is dominated by ¥50.19bn of short-term loans.

Cash Flow Quality

Cash-flow quality is principally constrained by working-capital intensity. Annualized receivable days are 520 days, well above the 60-day warning benchmark and the 45-day efficient-manufacturing benchmark. The 501-day annualized cash conversion cycle is also substantially above the 120-day warning threshold. These metrics signal that a large share of reported revenue and earnings remains tied up in customer receivables, heightening collection, milestone-acceptance and project-timing risk. Accounts receivable declined 5.4% YoY to ¥77.93bn, but remains exceptionally large relative to cumulative Q3 revenue of ¥41.05bn. Electronic receivables of ¥0.95bn provide only a limited addition to the receivable base. Working in process increased 97.3% YoY to ¥3.97bn and represents 74.2% of the combined disclosed raw-material, WIP and finished-goods balance. This high WIP mix exceeds the 40% warning threshold and may reflect execution bottlenecks, longer project lead times or revenue-recognition timing. Raw materials were ¥1.06bn and finished goods were ¥0.32bn, consistent with a business model centered on engineered systems and projects rather than inventory-intensive standardized manufacturing. Finished-goods inventory decreased 42.2% YoY, reducing finished-goods obsolescence exposure. The increase in WIP, however, needs to translate into accepted deliveries and collections to support cash realization. Product-warranty provisions rose 51.2% YoY to ¥0.37bn, equivalent to 0.9% of revenue, which remains below the 1% excellent-quality benchmark but should be tracked amid rapid overseas project expansion. Reported earnings contain no material extraordinary distortion, but ¥0.83bn of FX gains contributed to non-operating income. Foreign-exchange gains equal 17.8% of operating income, meaning a meaningful portion of the improvement from operating income to ordinary income is exposed to currency movements. Cash conversion should therefore be evaluated primarily through receivable collection and WIP unwind rather than accounting profit growth alone.

Dividend Sustainability

The interim dividend is ¥20.00 per share. The calculated interim payout ratio is 28.3% of cumulative Q3 net income, indicating that the amount paid to date is conservatively covered by earnings. The unchanged full-year dividend forecast is ¥70.00 per share, implying a ¥50.00 year-end dividend. Based on forecast EPS of ¥100.90, the projected full-year dividend payout ratio is approximately 69.4%. This is above the 60% conservative-sustainability benchmark but remains below 100%, so forecast earnings cover the planned dividend. The implied annual cash dividend requirement is approximately ¥2.66bn based on 37.99 million average shares. This represents roughly 69% of the ¥3.84bn forecast net income. Retained earnings of ¥29.57bn provide a substantial accounting buffer for distributions. Dividend sustainability is nevertheless linked to successful conversion of receivables and WIP into cash because the balance sheet is funded with ¥50.19bn of short-term borrowings. The unchanged dividend forecast signals management confidence in full-year earnings delivery. The principal variables affecting distribution resilience are Q4 project completion, collection timing, interest costs and refinancing conditions.

Risk Assessment

Business risks include US concentration risk: the US generated ¥8.41bn of revenue and ¥2.08bn of segment profit, or 44.7% of consolidated operating income; delays, cost overruns or customer acceptance issues in this market could materially affect group earnings., China profitability risk: revenue declined 31.8% YoY and segment margin fell from 10.0% to 0.4%, exposing the group to continued weakness in regional demand, competitive pricing or project-cost pressure., Project execution and production-cycle risk: WIP rose 97.3% to ¥3.97bn and forms 74.2% of disclosed production inventory, indicating potential bottlenecks or longer conversion periods., Customer collection risk: annualized DSO of 520 days and a 501-day cash conversion cycle indicate long milestone-based collection cycles and sensitivity to acceptance delays., FX risk: foreign-exchange gains of ¥0.83bn were 17.8% of operating income, making ordinary-income performance sensitive to exchange-rate movements..

Financial risks include Refinancing risk is elevated because ¥50.19bn of short-term loans represent 100% of reported interest-bearing debt. This maturity structure is aggressive relative to the 40% warning benchmark and requires ongoing lender support., Liquidity stress is elevated because cash covers only 0.27x of short-term debt. Although the quick ratio is 145.0%, liquidity depends predominantly on receivable realization rather than immediately available cash., Interest-servicing risk is material: interest coverage is 2.63x, below the 3x concern benchmark, while interest expense rose 30.4% YoY to ¥1.76bn., Leverage is elevated, with D/E of 1.84x and debt/capital of 56.5%, reducing tolerance for earnings volatility or a further rise in financing costs..

Key concerns include Highest priority: conversion of the receivable balance into cash and reduction of the 501-day annualized cash conversion cycle., Highest priority: refinancing or extending the maturity profile of ¥50.19bn in short-term borrowings., High priority: sustaining US project margins while avoiding excessive dependence on a single rapidly expanding region., High priority: restoring profitability in China and monitoring whether Korea’s rapid sales growth can generate stronger segment margins., Medium priority: the ¥0.83bn FX gain supported ordinary income; recurrence is not assured., Medium priority: the decline in contract liabilities to ¥2.90bn reduces advance-payment support for project working-capital requirements..

Investment Implications

Key takeaways include Revenue increased 28.9% YoY and operating income rose 18.0%, demonstrating robust demand and execution volume., Gross margin fell 331bp to 22.4%, but disciplined SG&A growth limited operating-margin compression to 105bp., US segment profit of ¥2.08bn became the principal earnings driver, while Japan and China experienced lower segment profits., Net income grew 38.7%, aided by ¥0.83bn of foreign-exchange gains, while ¥1.76bn of interest expense remains a significant earnings drag., Balance-sheet liquidity is adequate by current and quick ratios, but high receivables and fully short-term debt funding create a material cash-conversion and refinancing focus., The full-year operating-income forecast is broadly on run-rate, but achievement requires a large ¥18.95bn Q4 revenue contribution..

Metrics to watch include US segment revenue, segment margin and project acceptance timing, China segment margin recovery from 0.4%, Annualized DSO of 520 days and annualized cash conversion cycle of 501 days, Accounts receivable balance of ¥77.93bn and WIP balance of ¥3.97bn, Short-term loans of ¥50.19bn, cash/short-term-debt ratio of 0.27x and interest coverage of 2.63x, Gross margin following the Q3 cumulative 331bp YoY decline, Foreign-exchange gains relative to operating income, Q4 delivery required to reach the ¥60.00bn revenue forecast.

Regarding relative positioning, The company combines attractive project-led revenue growth and a strong high-margin US contribution with a comparatively asset-light operating base. Relative to a conservatively financed manufacturer, however, its profitability profile is more dependent on working-capital execution, short-term bank funding and selected overseas project outcomes. The 9.9% ROE is respectable but is supported by 2.84x financial leverage, while interest coverage and collection-cycle metrics are weaker than preferred credit-quality benchmarks.