Creative Technology back in the black thanks to US$32 million in other gains

Creative’s chief executive Sim Wong Hoo with the Sonic Carrier. Creative Technology posted a net profit of US$22.8 million for the three months to Sept 30, marking a big turnaround from a net loss of US$6.2 million in the same period a year earlier
Creative’s chief executive Sim Wong Hoo with the Sonic Carrier. Creative Technology posted a net profit of US$22.8 million for the three months to Sept 30, marking a big turnaround from a net loss of US$6.2 million in the same period a year earlier.PHOTO: ST FILE

SINGAPORE - Gains from the settlement of patent lawsuits gave Creative Technology a decisive push into the black for the first quarter.

The technology company posted a net profit of US$22.8 million for the three months to Sept 30, marking a big turnaround from a net loss of US$6.2 million in the same period a year earlier.

This was despite sales slipping 7 per cent to US$16.1 million, due to the uncertain and difficult market conditions that continued to affect the sales of the group's products, said Creative in its earnings report on Thursday.

The firm racked up US$32 million in other gains, including US$31.2 million received from the settlement of patent lawsuits and a US$600,000 foreign exchange gain.

Selling, general and administrative expenses, however, rose 35 per cent due mainly to higher legal expenses for on-going litigations.

Earnings per share came in at 32 US cents, down nine US cents from previously. Net asset value per share stood at US$1.39 as at Sept 30, compared with US$1.06 as at June 30.

Creative shares closed flat at $1.18 on Thursday, before the results were released.