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Creative Technology posts Q2 net loss of US$4.9m on lower revenue
CREATIVE Technology sank deeper into the red for its second quarter ended Dec 31, dragged down by lower revenue. The group recorded a net loss of US$4.9 million, compared to a net loss of US$4.2 million a year ago.
Turnover decreased 22 per cent to US$16.2 million due to "uncertain and difficult market conditions which affected the sales of the group's products", it said in a Singapore Exchange filing. Gross profit fell 18 per cent to US$4.8 million.
Loss per share came in at S$0.07 compared to S$0.06 a year ago. No dividend was declared for the quarter.
Creative said that it expects no significant change in the market conditions and overall market for the group's products remains challenging. Revenue is expected to be lower in this non-holiday season quarter, and the group expects to report an operating loss. Revenue contribution from Super X-Fi products for the quarter is not expected to be significant to the overall revenue for the group, it added.
In February, wholly-owned subsidiary ZiiLabs Inc settled certain patent infringement lawsuits filed in the US.
"The settlement sum of US$17.9 million will be recognised by the group as other income in the current quarter. This will offset the operating loss and is expected to result in a net profit for the current quarter," said Creative.
The counter shed S$0.02 to close at S$5.52 before results were released.