Singapore-listed Creative Technology sank deeper into the red in the second quarter on the back of lower revenue.

The group recorded a net loss of US$4.9 million (S$6.7 million) for the three months to Dec 31 compared with a net loss of US$4.2 million a year earlier.

Turnover fell 22 per cent to US$16.2 million due to "uncertain and difficult market conditions, which affected sales", it reported on Thursday night. Gross profit fell 18 per cent to US$4.8 million.

Loss per share came in at seven US cents compared with six US cents a year earlier. No dividend was declared for the quarter.

Creative said it expected no significant change in market conditions, which remained challenging.

Revenue was likely to be lower in this non-holiday season quarter, and the group expected to report an operating loss.

Revenue contribution from Super X-Fi products for the quarter was not expected to be significant to overall group turnover, it added.

In February, wholly-owned subsidiary ZiiLabs settled certain patent infringement lawsuits filed in the United States.

"The settlement sum of US$17.9 million will be recognised by the group as other income in the current quarter. This will offset the operating loss and is expected to result in a net profit for the current quarter," said Creative.

Creative shares fell 10.51 per cent to $4.94 yesterday.