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Creative Technology Q1 losses widen on foreign exchange loss
CREATIVE Technology has widened its first-quarter net losses to US$9.8 million for the three months ended Sept 30, 2014, compared to its US$5.5 million net losses a year ago.
The higher net losses was due mainly to an "other losses" component of US$3.6 million, which mostly stemmed from a foreign exchange loss of US$3.3 million.
"The functional currency of the company and its subsidiaries is predominantly the US dollar and accordingly, gains and losses resulting from the translation of monetary assets and liabilities denominated in currencies other than the US dollar are reflected in the determination of net income or loss," it said.
In Q1, cash and cash equivalents held by Creative in Singapore dollar, euro, British pound and Japanese yen suffered an exchange loss as they depreciated against the US dollar.
Net sales also fell 20 per cent to US$24.3 million, due to the uncertain and difficult market conditions which continued to affect the group's product sales, it said.