Creative Technology warns revenue may be lower than expected in H2

CREATIVE Technology announced Friday (Jul 1) that it expects its revenue for the second half ended June to fall below target to around US$27 million.

The company said H2 FY2022 revenue was negatively impacted by the “uncertain economic conditions resulting from unexpected global events”.

These include pandemic-related lockdowns in China, which added to the ongoing supply chain disruptions, as well as the Russia-Ukraine war and related sanctions, which contributed to the spike in energy costs and inflation rates.

The group said these factors have adversely affected the business environment in many markets for the group’s products.

The company had previously announced that it expects to report an operating loss for H2.

Creative Technology’s sales fell 28 per cent year on year to US$34.1 million in the first half of FY2022, largely due to a global shortage of semiconductors and delays in shipping schedules.

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It had posted a higher net profit of US$1.2 million in H1, up from US$45,000 in the corresponding period a year ago. However, this was on the back of a one-off US$10 million gain from the disposal of a property in the US.