Sony Corporation (“Sony”) and Samsung Electronics Co., Ltd. (“Samsung”) today announced that the two companies have signed agreements to transition the current business relationship with respect to LCD panels.

Under the agreement, Samsung will acquire all of Sony’s shares of S-LCD Corporation (“S-LCD”), the two companies’ LCD panel manufacturing joint venture, making S-LCD a wholly owned subsidiary of Samsung. In consideration for the share transfer, cash consideration of approximately KRW 1.08 trillion* will be paid to Sony by Samsung. Concurrently, the two companies have entered into a new strategic agreement for the supply and purchase of LCD panels with a goal of enhancing the competitiveness of both companies. The agreement also allows Sony and Samsung to continue cooperative engineering efforts focused on LCD panel technology.

For Sony, this transaction will enable it to monetize its shares in S-LCD and aims to secure a flexible and steady supply of LCD panels from Samsung, based on market prices and without the responsibility and costs of operating a manufacturing facility. With whole ownership of S-LCD, Samsung anticipates heightened flexibility, speed and efficiency in both panel production and business operations.

Established in April 2004, S-LCD has continued to deliver advanced and cost-competitive LCD panels to both of its parent companies, contributing to the expansion of the respective parties’ TV businesses, and the large-sized LCD TV market overall. However, LCD panel and TV market conditions have now changed. In order to respond to such challenging conditions and to strengthen their respective market competitiveness, the two companies have agreed to shift to a new LCD panel business alliance.

The share transfer and payment are targeted to close by the end of January 2012, subject to necessary approvals from regulatory authorities.

As a result of this transaction, a non-cash impairment loss of approximately JPY 66 billion is expected to be incurred by Sony in the third quarter of the fiscal year ending March 31, 2012, due to the reevaluation of its S-LCD shares. This loss includes an impact from the fluctuation of exchange rate. Despite this one-time loss, Sony estimates that the transaction will result in substantial savings on and after January 1, 2012 in respect of costs associated with its procurement of LCD panels. The current estimate of the yearly savings in respect of such costs is approximately JPY 50 billion, compared to LCD panel procurement costs estimated for the fiscal year ending March 31, 2012. Neither the one-time loss nor the estimated cost savings were included in Sony’s forecast of consolidated financial results for the current fiscal year ending March 31, 2012, announced on November 2, 2011. Sony is currently reevaluating this forecast, taking into account this transaction and other factors that might affect its full year FY2011 consolidated financial results forecast.

Facts about S-LCD
Established
:April 26, 2004
Capital
:KRW 3.3 Trillion
(Samsung Electronics: 50% plus 1 share, Sony: 50% minus 1 share)

Representative
:Donggun Park, CEO
Location
:Tangjeong, Chung Cheong Nam-Do, South Korea
Production Items
:7th and 8th generation Amorphous TFT LCD
*Note: The final amount of such payment will be determined based on S-LCD’s financial statements as of the end of December 2011.

sony.net

According to report author Dr Windsor Holden, “Many online casinos are now moving into the mobile environment, while bookmakers such as Ladbrokes and Coral have partnered with leading applications providers to launch own brand mobile casinos. Furthermore, the recent success of casino products from mobile-focused companies such as Probability demonstrates the latent demand for these kinds of services.”

However, the report cautions against over-optimism, observing that, recent deregulation notwithstanding, in many markets, including the US, remote casinos are prohibited.

“While it is possible – even probable – that we will see some form of regulatory reform that will permit location-based, mobile casino services in the US by the end of the decade, casino services – mobile, online or otherwise – are illegal in a number of territories and are likely to remain so for some time,” said Holden. “Given the stringent penalties which can be imposed on unlicensed service providers, those wishing to deploy casino-based or other gambling services must ensure strict compliance with local legislation.”

Other findings from the report include:

• Global gross win from mobile casino services will rise from less than $5m in 2007 to $133m in 2012

• The UK currently accounts for more than 60% of total wager on mobile casino services, although this proportion is likely to fall to less 20% by 2012 as adoption accelerates elsewhere

• While adoption of multiplayer casino services is relatively low, average monthly wager levels have already exceeded $100 in several markets

Juniper Research assesses the current and future status of mobile gambling market based on interviews, case studies and analysis from representatives of some of the leading organisations in the growing mobile gambling industry.

Total Revenues	2007	2006	YoY Growth
October	13,100	10,713	22.28%
January through October	92,670	87,074	6.43%

Motorola today reported sales of $8.8 billion for the third quarter of 2007. The GAAP earnings from continuing operations for the third quarter of 2007 were $0.02 per share, which includes net charges of $0.04 per share related to charges associated with previously announced workforce reductions and a write-down of intangible assets.

“We are pleased with the improvement in the financial performance of mobile devices and we look forward to building upon the progress we have made,” said Ed Zander, chairman and chief executive officer.  “We have strengthened our leadership position in broadband video, WiMAX, next generation government and public safety and the enterprise mobility markets. With our focus on these key opportunities and the initiatives we are taking in mobile devices we will further improve our performance and create long-term shareholder value.” 
  
“During the third quarter, we maintained our focus on increasing cash flow, enhancing profitability and driving growth,” said Tom Meredith, chief financial officer. “We are beginning to see improvements in our cash conversion cycle and operating cash flow which will lead to increased financial flexibility.”

Operating Results

Mobile Devices segment sales were $4.5 billion, down 36 percent compared with the year-ago quarter. Excluding highlighted items, the segment incurred an operating loss of $138 million, compared with operating earnings of $843 million in the year-ago quarter. Motorola’s share of the global handset market for the quarter is estimated to be 13 percent.

During the quarter, Mobile Devices:

• Shipped 37.2 million handsets — including more than 900,000 RAZR 2 devices.
• Introduced the MOTO U9 music device, a special edition RAZR 2 for the holiday season, seven new W-Series handsets, and the iC602 dual-mode iDEN/CDMA device.
• Expanded the Z6 line with the introduction of ROKR Z6m and Z6tv.
• Introduced an ultra high speed WiMAX chipset solution, optimized for both size and low power consumption.

Home and Networks Mobility had segment sales of $2.4 billion, up 6 percent compared with the year-ago quarter. Excluding highlighted items, operating earnings were $165 million, compared with operating earnings of $231 million in the year-ago quarter.

During the quarter, Home and Networks Mobility:

• Shipped its two millionth IPTV set-top device, just five months after reaching the one million milestone.
• Strengthened portfolio with several strategic acquisitions including Leapstone Systems, Modulus Video, and Terayon Communications.
• Conducted the world’s first WiMAX 802.16e mobile handoff during the WiMAX World Conference in Chicago.
• Announced plans to divest the embedded communications computing business for $350 million in cash.

Enterprise Mobility Solutions had segment sales of $2.0 billion, up 47 percent compared with the year-ago quarter. Excluding highlighted items, operating earnings were $336 million, compared with operating earnings of $280 million in the year-ago quarter.

During the quarter, Enterprise Mobility Solutions:

• Launched MOTOTRBO, a dual-mode digital 2-way communications platform that integrates voice and data, in key markets in Asia and Latin America.
• Awarded several county-wide public safety contracts in North America.
• Shipped the one millionth MC9000, the industry leading rugged mobile computer.
• Started shipping the MC17 mobile computer, aimed at retail, in-store applications for enhanced personal shopping experiences.

Outlook

The company’s outlook for earnings per share from continuing operations in the fourth quarter is $0.12 to $0.14. This outlook excludes any reorganization of business charges associated with the company’s operating expense reduction initiatives, as well as any other items of the variety highlighted by the company in its quarterly earnings releases.
Consolidated GAAP Results
A comparison of results from operations is as follows: