Real Time Communications Industry News

TMCNet:  Moody's Downgrades Sony Again

[November 09, 2012]

Moody's Downgrades Sony Again

(Benzinga Lightning Feed Via Acquire Media NewsEdge) Moody's Investor Service has cut its credit rating for Sony (NYSE: SNE) to Baa3, the lowest investment grade rating. Moody's also put Sony on negative watch. One more downgrade would reduce Sony's debt to junk status.


"Without robust restructuring in the coming 12-18 months, Sony's non-financial services businesses will at best achieve roughly break even, and are also at risk of remaining unprofitable," the rating agency said in a report cited by Reuters.

“Today's downgrade is Sony's third this year by Moody's. Standard & Poor's has cut the company's long-term rating twice so far this year,” Bloomberg noted.

Sony has been struggling with losses in its television business as it has been unable to compete with Samsung Electronics (OTC: SSNLF) and LG Electronics (OTC: LGEAF). In the games business, Sony's Playstation has been struggling against Microsoft's (Nasdaq: MSFT) X-box.

One area where Sony has been making some headway is in mobile phones. In a survey by market research company Canalsys cited by ZDNet, Sony was the number three mobile phone manufacturer during the third quarter, beating out HTC (OTC: HTCXF) and Research in Motion (Nasdaq: RIMM) but well behind market leaders Samsung and Apple (Nasdaq: AAPL).

The Financial Times commented, “Sony has struggled to shift its focus from the increasingly unprofitable business of hardware manufacturing to the sort of integrated design, software and content-distribution model pioneered by Apple.” “Sony would be in even deeper trouble if not for its film and music businesses and its Japanese financial services arm,” the FT continued, “profitable areas whose earnings have partly offset its losses in electronics.” In a related story, Tim Schaaf, president of Sony Network Entertainment, who was recruited from Apple in 2005, has announced that he will be retiring at the end of the year.

Sony's ADR is trading at its lowest level since June 11, 1987.

(c) 2012 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

[ Back To Real Time Communications's Homepage ]

Featured Videos

GenView Real Time Session Manager Demo

Session-based VoIP and rich media services such as video can place unique demands on the network.

GENBAND SPiDR - WebRTC Gateway

Contact GENBAND about the SPiDR™ WebRTC Gateway by clicking here.

A videoconference that calls you

On the busiest of days, who has time to stop and search for that bridge information, to have to dial or hope the link works...only to wait for the chairperson to arrive?

Call Grabber Demo

Move calls seamlessly between phones, soft clients and mobile devices at the push of a button.

Hosted Unified Communications

GENBAND's Hosted Unified Communications is a SMART OFFICE™ solution that enables voice over broadband to Business users, providing flexible migration from legacy services, supporting full regulatory features, and offering advanced services.

Featured Whitepapers

Is Your Network Ready for the Internet of Everything?

The telephone industry is undergoing a dramatic transformation that began with the introduction of IP-based data networks in the early 1990s and then with Voice over Internet Protocol (VoIP) in the late 1990s, and it now includes all forms ofvoice, video, and messaging communications.

Building a Secure and Scalable Multimedia IP Exchange

As fixed and mobile operators increasingly move to IP-based networks, the complexity required to interconnect these networks grows dramatically. Faced with increasing competition from all corners and constant challenge to grow revenues, operators are struggling with the variety and disparities in partner and customer networks.

How Carriers Can Optimize for LTE Roaming

Connectivity between mobile network operators (MNO) in 4G LTE is much more complex than it was in legacy networks.This complexity is primarily due to the change in focus. LTE is not a voice-focused roaming environment, but rather a datacentric environment.

Featured Case Studies

CASE STUDY: Real Time Communications Made Easy Via The Mobile Web

HubRTC offers the world's first WebRTC communication as a service to small and medium businesses, combining browser-based voice, video and messaging over WiFi that works on personal computers and Android smartphones and tablets. Their basic and premium solutions work with existing PBX applications servers, and support rich feature sets including voice mail and visual voice mail, audio and video conferencing, all for a fraction of the cost of old fashioned "phone systems." They have combined their Real Time Communications experts with software, devices and accessories, and cloud platforms to deliver a true office-on-the-run.

CASE STUDY: TW Telecom Accelerates Market Adoption of SIP Trunking Services

tw telecom is one of the top three largest providers of Business Ethernet in the US, connecting approximately 20,000 commercial buildings and third-party data centers to its national fiber network.

CASE STUDY: Embedding Real-Time Communications Into Digital Interactive Publishing Platforms

X-Factor Communications (XFC) is a premium provider of easy-to-use, interactive digital media software and services delivering single point publishing of Mass Notifications, advisories, emergency messages, rich informational content and advertising to any connected device.

Featured Webinars

WebRTC Applications for Service Providers using GENBAND'S SPiDR Gateway


GENBAND's SPiDR WebRTC Gateway provides an intelligent bridge between SIP/IMS based VoIP networks and the open ecosystem of the Internet. WebRTC holds great promise to revolutionize the nature of our daily communications. But what should you, as a service provider, be doing today to take advantage of this movement?

Best Practices in Deploying Hosted IP Telephony


Speaker: Sara Hughes and Mitch Layman

LTE, How Can You Accelerate The Payback? Diameter Signaling Controller


Speaker: Ashish Jain - Director Solutions Marketing