Japanese Tech Stock Weekly Summary

The following is excerpted from IRG's weekly stock report:

Media, Entertainment and Gaming

• Sony (SNE) announced that it is closing its Portable-TV (P-TV) service in Japan, a service that is seen as the equivalent of what the company is bringing to UK and Ireland. Earlier, the company announced that it has entered into a deal with Sky Television to bring on-demand video to PlayStation Portable owners in the two countries. The service is also expected to widen to cover Europe in the future. All of P-TV's downloadable media is DRM-protected (Digital Rights Management) and only accessible for a limited amount of time - ranging from 5-30 days. Media sources, however, indicated that Sony has plans to bring improved service, which is similar, in the future for Japanese clients.

Internet
• Openwave Systems Inc. (OPWV), the leading provider of independent software products and services for the communications industry, announced that SoftBank Telecom, the fixed-line telecommunications segment of SoftBank group (SFTBF.PK) and one of Japan's largest telecommunication companies, has selected Openwave Rich Mail, an AJAX-based Adaptive Communications solution that provides a dynamic web interface for broadband and mobile communications solutions. SoftBank Telecom recently launched its Rich Mail services to provide an innovative and feature-rich messaging experience to its ODN and SpinNet Internet customers. Openwave Rich Mail is designed for carrier-scale deployment by broadband and mobile operators around the world and enables operators to brand and personalize their messaging and Internet offerings. SoftBank Telecom is one of the largest ICT (Information & Communication Technology) solution companies in Japan with a nationwide fiber-optic network. With headquarters in California, Openwave Systems Inc. offers IP-based handset-to-network solutions that enable the rapid launch of information, communication and entertainment services.

Software
• Oki Japan announced the introduction of its iris recognition software or Iris Authentication Middleware for Windows Mobile and Symbian-based mobile phones. With the software, a user can register with an eye. Taking only seconds, the system works by allowing the application to use the camera to lock and unlock the phone.

• FutureDial Incorporated, a provider of mobile device management solutions to wireless carriers around the world, announced that the company and one of its major shareholders – Sun Corporation in Japan – have completed the acquisition of all of the assets of Cellebrite Mobile Synchronization, Ltd, an Israel-based provider of mobile content transfer solutions previously held by private investors. Financial details of the Cellebrite buyout deal were not disclosed. Founded in 1999, FutureDial is a privately held software company focused on developing mobile device content management solutions that increase both revenue and customer satisfaction for leading wireless carriers.

• Paisley, the leading provider of governance, risk and compliance [GRC] software solutions announced its move to widen its operations in Japan by entering into a partnership with eSolia, a globally minded, Tokyo-based bilingual information technology management firm. The company provides high-quality, business-focused consulting, project and outsourcing services to a variety of blue-chip foreign and Japanese organizations in Japan and abroad. Under the agreement, Paisley, known for its financial controls management software will team with eSolia to help Japanese businesses address the requirements of the J-SOX or the Financial Instruments and Exchange Law. In the alliance, the two companies will jointly offer an accelerated implementation program that enables organizations to achieve J-SOX compliance in 90 days.

Hardware
• Observers believe Hitachi Ltd. (HIT) could be first to market a digital video camcorder based on Blu-ray Disc. The company said that it is set put two such cameras on sale at the end of this month in Japan and later this year in North America. The cameras will use a new variety of Blu-ray Disc that is 8 centimeters in diameter. Hitachi Maxell said it will put the 7.5G-byte discs on sale in August. The DZ-BD70 will be based solely on the discs and the DZ-BD7H is a hybrid model with 30G-byte hard disk drive. The company said it to launch both cameras in Japan on August 30th. Even as Hitachi has not really decided on a price in Japan, the device is already being advertised online for US$1,362 for the DZ-BD70 and US$1,567 for the DZ-BD7H. They will be available in North America in October and will cost US$1,299 and US$1,499 respectively.

• Pioneer Corp. (PNCOF.PK) announced that it will launch its first full high-definition plasma TVs in October, a move that may enable it to join its rivals such as Matsushita Electric Industrial Co. (MC) Ltd. in the market. Pioneer's plasma operations went through a quarterly loss in April-June, with the company affected by intense competition in the flat TV market, where plasma televisions are losing market share to rival liquid crystal display [LCD] models. Pioneer's new 50- and 60-inch full high- definition sets, featuring an ability to recreate deeper black than conventional models, are expected to sell for US$6,060 and US$8,340 in Japan, compared to Matsushita's 50-inch full high-definition plasma TVs, which sell for US$3,811.

Telecommunications
• Nippon Telegraph & Telephone (NTT), Japan's biggest telecommunications company, reported a 3.4 percent rise in its group net profit for the April-June quarter, which the company ascribed to a diminished tax payment bought about by NTT DoCoMo’s share buyback. The company’s net profit climbed to 149.5 billion yen (US$1.2 billion) from 144.6 billion yen (US$1.2 billion) the same period a year earlier. NTT DoCoMo is the company’s subsidiary. The company's group revenue registered a 1.5 percent decline to 2.5 trillion yen (US$21.8 billion) from 2.6 trillion yen (US$22 billion) even as revenue from broadband Internet access services posted a growth. NTT’s group operating profit also posted a 17 percent drop to 299.2 billion yen (US$2.5 billion) from 359.1 billion yen (US$3 billion), the decline brought about by higher marketing and other operational costs in the mobile phone and system integration businesses. The company retained its outlook for the fiscal year through March, with the forecast of a group net profit reaching 460 billion yen (US$3.8 billion) on revenues of 10.7 trillion yen (US$90.1 billion).

• Jupiter Telecommunications, Japan’s largest MSO (Multi-Systems Operator), announced the merger of its three subsidiary companies: J-COM Kanto, Chofu Cable and J-COM Setamachi. The merger is expected to form the country’s largest MSO, with some 520,000 households served. The company also calls the move a “strategic consolidation” expected to enhance group competitiveness.