Japanese Tech Stock Weekly Summary

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

Media, Entertainment and Gaming

• Online game operator GameOn Co. disclosed that Neowiz Games Corp. has become its largest shareholder, with the South Korean firm holding a 34.2 percent stake in terms of voting rights. Neowiz acquired GameOn shares through a tender offer. The report also indicated that a South Korean investment firm that launched the tender offer jointly with Neowiz became GameOn's second-largest shareholder, holding a stake of 25.8 percent.

Internet

• Kyocera Corporation (KYO) announced that it will introduce a new external modem for the iBurst wireless Internet access system. Industry observers said the iBurst concept is getting the attention of the industry with its full-mobile, all-IP, end-to-end Internet system. The modem is expected to transfer data at speeds up to two megabits per second (2Mbps), a rate twice as fast as that offered by current iBurst modems. Kyocera said the new product will be available in March 2008. Kyocera’s iBurst system provides commercial Mobile Broadband Wireless Access [MBWA] services in 11 countries worldwide, including Australia, Malaysia, Lebanon, Norway, Kenya, the U.S and Canada.

Software

• Convergence, a Honolulu-based health-care technology company, announced that it has entered into a five-year distribution agreement in Japan for its patient data management software. Under the agreement, Convergence and Tokyo-based Itochu Corp will jointly distribute and license its CCT Clinical Data Warehouse solutions software, which manages patients' health data for medical groups, hospitals and clinics. Itochu, which has invested US$2 million in Convergence to become an equity partner, will also offer consulting services to Japanese clients. Convergence also maintains offices in San Francisco, Tokyo and Berlin.
• Tokyo-based Access Co., a maker of mobile phone software, announced its plan to develop Linux-based applications with NEC Corp. (NIPNY) and Matsushita Electric Industrial Co. (MC) for NTT DoCoMo Inc. (DCM) handsets. The report placed the availability of the software by March 2010. Access is developing an open-source operating system called Access Linux Platform for hand-held devices to win share from Symbian Ltd. and Microsoft Corp. (MSFT) in the smart phone market, which comprises 104 million unit handsets globally.

Hardware

• Toshiba announced its plans to enter the market for solid-state drives [SSDs] for notebooks next year, with the company aiming to sell by May three lower-priced products. With the move to launch SSDs, Toshiba and STEC (STEC), its rival, will be the only two firms delivering flash memory notebook drives based on multi-level cell [MLC] technology. Industry observers note that MLC drives hold more data than single-cell drives that are more commonly used in notebooks, and are less expensive, making them attractive to more consumers and businesses. MLC technology enables the storage of 2 bits of data per memory cell, versus 1 bit with single-level cell technology. With the technology, manufacturers can deliver twice the memory at about the same price, but MLC drives are not as fast as SLC devices and do not retain data as long.
• Minicom Advanced Systems, headquartered in Jerusalem, Israel, announced the expansion of its partnership with NEC Display Solutions. Under the new agreement, the joint Minicom and NEC venture, which began in February of 2006 with the announcement of the integration of the DS Vision 3000 receiver with NEC's line of display screens, will now widen to incorporate Minicom receivers in a total of seven different models of NEC screens.

Information Technology

• DATATRAK International, Inc. (DATA), a technology and services company focused on global eClinical solutions for the clinical trials industry, reported that it has signed an enterprise agreement and marketing alliance with NTT DATA Corporation. The group will enable NTT DATA to become a value-added-reseller of the DATATRAK eClinical product suite to the Japanese clinical trials market. This relationship consists of a five-year enterprise subscription license agreement, with the enterprise license and implementation services initially worth a minimum of approximately US$2.4 million to DATATRAK.
• Sun Microsystems, Inc. (JAVA) announced that Japan has selected Sun to create an open web 2.0 architecture which is expected to provide better IT leverage in the delivery of government services to citizens. With this move, Japan joins Singapore and Norway on the growing list of governments that have already turned to Sun for efficient, scalable architectures that manage global information flow and help maximize productivity. According to media sources, the Japanese government has been looking for ways to provide electronic government services for many years, which led to the formulation of the "New IT Reform Strategy" in January 2006. The strategy aims at making 50 percent of all applications and filings for government agencies to be submitted online by 2010. Sun was chosen to create an integrated and inherently secure network, called Trusted Network, which will help enable a one-stop service infrastructure. The complete Sun solution is comprised of OpenSolaris OS, Sun Java System Identity Manager software, Sun Java Composite Application Platform Suite and Sun Ray thin clients.

Ventures/Investments

• According to media sources, Hitachi (HIT) is thinking of opening an R&D center in Israel, with the firm looking to the areas of nanotechnology and software for chip production as the focus. Chairman of Hitachi High Technologies Corporation said that Hitachi might also set up a center in Singapore, with the plan of having Israeli, Singaporean and Japanese engineers working together in different technology-based projects. Hitachi High Technologies manufactures electronic equipment and materials for semiconductor production, laboratory equipment.

Disclaimer: IRG is not responsible for the accuracy of the news compiled within this article, which is based on publicly available information.