Creative sinks into the red with US$9.1m H2 loss

CREATIVE Technology has sunk into the red with a net loss of US$9.1 million for its second half ended June 30, 2020 compared with a net profit of US$7.2 million a year ago.

This was mainly due to other losses of US$1.1 million for the second half of the year, versus other gains of US$17.7 million for H2 FY2019, the mainboard-listed company said in a regulatory filing on Thursday night.

Other losses for the second half of FY2020 were mainly due to fair value loss on financial assets, while other gains for the year-ago period were mainly attributable to US$17.9 million received from the settlement of patent lawsuits, which were partially offset by fair value loss on financial assets, Creative said.

Loss per share stood at US$0.13 for the half year period, versus earnings per share of US$0.10 in the preceding year.

Revenue for H2 rose 17 per cent to US$29.9 million, from S$25.5 million a year earlier. This was due to an increase in sales from new products launched during the financial year, Creative said.

No dividend was declared for the half year, unchanged from a year ago.

For the full year ended June 30, net loss widened to US$17.6 million, from a loss of US$3.8 million last year. Revenue for the full year rose 11 per cent to US$61.2 million, up from US$54.9 million a year ago.

Shares in Creative closed flat at S$2.74 on Thursday, before its results announcement.