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Creative Technology swings into black with Q3 net profit of US$10m

GAINS of US$17.9 million received from the settlement of patent lawsuits meant that Creative Technology was back in the black for the third quarter.

As a result, net profit was US$10 million, a reversal from a net loss of US$3.8 million in the previous year, the group said in a Singapore Exchange filing on Tuesday evening. Earnings per share came in at US$0.14, a reversal from a loss per share of US$0.05 in the previous year.

However, for the three months ended March 31, revenue was US$12.7 million, down 15.3 per cent from US$15.2 million posted in the preceding year.

Revenue recorded for the third quarter of fiscal 2019 was lower due to the uncertain and difficult market conditions which affected the sales of the group’s products, Creative said.

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Gross profit for the period stood at US$3.69 million, down 13 per cent from the US$4.23 million in Q3 of fiscal 2018. Meanwhile, gross profit margin for the third quarter stood at 29 per cent, which the company said was in line with sales mix.

While profitable in the third quarter, Creative is in the red for the nine months ended March 31, with a net loss of US$1.01 million, a reverse from a net profit of US$14.84 million in the preceding period. Revenue for the first nine months of fiscal 2019 stood at US$42.14 million, a 18.9 per cent dip from the US$52 million posted in fiscal 2018's first nine months.

Net asset value per share dipped to US$1.58 as at March 31, from US$1.61 nine months ago.

No dividends have been recommended in the third quarter. Dividends were also not recommended for the year-ago period.

Creative Technology shares closed S$0.06 or 1.4 per cent down at S$4.20 on Tuesday.