Continuing woes deepen Creative Technology's Q2 loss

Homegrown sound card maker Creative Technology reported a net loss of US$9.2 million (S$12.4 million) for the second quarter to Dec 31 and a 17 per cent fall in sales to US$31.3 million. -- PHOTO: BLOOMBERG
Homegrown sound card maker Creative Technology reported a net loss of US$9.2 million (S$12.4 million) for the second quarter to Dec 31 and a 17 per cent fall in sales to US$31.3 million. -- PHOTO: BLOOMBERG

SINGAPORE - Homegrown sound card maker Creative Technology has posted another dismal quarter.

Net loss for the second quarter to Dec 31 widened to US$9.2 million (S$12.4 million) from US$4.1 million while sales tumbled by 17 per cent to US$31.3 million.

Loss per share worsened to 0.13 US cent from 0.06 US cent previously.

For the first six months, net loss surged to US$19 million from US$9.6 million in the same period last year.

Net asset value per share shrank to US$1.69 from US$1.93 as at June 30.

Revenue in the second quarter and first half year was lower due to the uncertain and difficult market conditions which continued to affect the sales of the group's products.

Gross profit margin was in line with the sales mix.

The write-down for inventory obsolescence in the second quarter and first half year was for certain existing products following the introduction of new product models.

Research and development expenses in the second quarter and first half year fell by 22 per cent and 20 per cent, respectively, due mainly to cost cutting actions taken by management.

On its prospects, the overall market for the Creative's products remains challenging and for this quarter the group expects no major improvement in the difficult and uncertain market conditions.

"Revenue is expected to be lower in this quarter compared to the current level and the group expects to report an operating loss," Creative warned.