UPDATE 1-RESEARCH ALERT-JP Morgan downgrades Sonic Solutions

Wed Jul 23, 2008 12:53pm BST
[-] Text [+]

(Adds details)

July 23 (Reuters) - JP Morgan downgraded digital media software company Sonic Solutions Inc (SNIC.O: Quote, Profile, Research) to "neutral" from "overweight", citing slowing consumer spending.

The brokerage said retail check suggests sales of Roxio products, under which the company sells photo, video, music, and digital-media management applications, could fall short of prior expectations.

The brokerage believes a recovery in OEM revenue is likely to be muted by cyclical tradedowns and head-on competition from Adobe Systems Inc (ADBE.O: Quote, Profile, Research).

OEM (Original Equipment Manufacturer), when used to describe software, is a version of the software bundled with other hardware or software rather than the same software package sold on its own as a retail package.

Shares of Sonic closed at $6.84 Tuesday on Nasdaq. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Anil D'Silva)

 
 
SNIC.O
Last:
Change:
Up/Down:
 
by Name by Symbol