UPDATE 1-RESEARCH ALERT-JP Morgan downgrades Sonic Solutions
(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)
© Thomson Reuters 2009. All rights reserved. | Learn more about Thomson Reuters
