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Creative Technology reverses into black in Q3 on gain from lawsuit settlement
CREATIVE Technology on Thursday said it reversed into the black for the third quarter, lifted by gain from a settlement in a patent lawsuit, but said it is expected to report an operating loss.
Net profit for the three months ended March 31, 2016, stood at US$4.04 million. This reversed from a net loss of US$11.7 million in the same period a year ago.
The company recorded US$12.5 million in gains from a settlement in a patent lawsuit.
But gross profit fell 20 per cent to US$5.2 million, with margins felling slightly. Revenue was weaker due to "uncertain and difficult market conditions".
"The group expects no significant change in the market conditions and revenue in this quarter is expected to be comparable to the current level," it said in its financial statement. "The group expects to report an operating loss."