Try charging the battery, red led indicates dead battery.
If that doesn't work, connect phone to Sony Update Service/PC Companian and try to restore phone/update phone.
Sony Xperia E dual C1604
CM10 with Dual Sim [4.1.2]
Custom Kernel with CM10 [3.4.0]
ARM Cortex-A5 overclocked at 1.3 GHz
Motorola Charm MB502 - USB powered!
Stock - Eclair [2.1-update1]
ARM Cortex-A8 overclocked at 1.0 GHz