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Creative Technology posts Q1 net loss of US$6.1m

CREATIVE Technology posted a net loss of US$6.1 million for its first quarter ended 30 September, reversing from a profit of US$22.8 million a year ago.

The year-ago quarterly profit was mostly due to gains from the settlement of patent lawsuits and foreign exchange gains.

Sales fell by 18 per cent to US$13.2 million, due to the "uncertain and difficult market conditions which affected the sales of the group's products".

Loss per share stood at US$0.09 for the quarter, compared to earnings per share of US$0.32 a year ago. No dividend was declared.

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In its outlook, the group expects no significant change in the market conditions and said that the overall market for its products remains challenging.

However, revenue is expected to be higher for the holiday season in this quarter compared to the current level. With a small revenue contribution from Super X-Fi products, the group expects an improvement in operating results for the quarter from the current level.

Shipments of Super X-Fi products commenced in the beginning of the current quarter for the Singapore market. Shipments for the US market are expected to commence towards the end of the quarter and revenue contribution for the quarter is not expected to be significant to the overall revenue for the group.