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Creative posts Q4 net loss of US$2.8m on market uncertainty
CREATIVE Technology recorded a net loss attributable to equity holders of US$2.8 million for the fourth quarter ended June 30, compared with a net profit of US$25.6 million in the year-ago period, it said in a results release after market close on Wednesday.
For the current quarter, Creative said it "is targeting an improvement in revenue from the current level" but expects to report an operating loss.
Revenue for the fourth quarter fell 9 per cent to US$12.8 million from US$14.1 million in the year-ago period.
Gross profit margin was 29 per cent in the fourth quarter and full year, compared with 28 per cent the previous year.
However, there was an absence of other gains of US$30.7 million recorded in Q4 2018, due mainly to US$32.6 million gains from litigation settlements.
Loss per share for the quarter was 0.04 US cent, compared with earnings per share of 0.36 US cent in the year-ago period.
Creative recorded a full-year net loss of US$3.8 million, compared with a net profit of US$40.4 million the year before. Full-year revenue was down 17 per cent at US$54.9 million.
Creative said revenue was lower both in the fourth quarter and the full year "due to the uncertain and difficult market conditions which affected the sales of the group's products". Full-year net sales were down 22 per cent in the Asia-Pacific region and 19 per cent in Europe, but increased 5 per cent in the American region.
"For the current financial year, the upcoming introduction of a number of new products is expected to provide potential revenue growth opportunities and the group is targeting an improvement in revenue from the current level," said Creative. "However, the uncertain global economic conditions and the ongoing trade tensions are expected to have a negative impact on the group's revenue and the extent of such impact is uncertain at this time."
Creative shares closed up four Singapore cents or 1.18 per cent at S$3.42 on Wednesday before the results release.