Forex losses add to Creative Technology's woes

SINGAPORE - Sound card maker Creative Technology's net loss widened to US$9.8 million (S$12.3 million) from US$5.5 million in the first quarter.

Revenue for the three months to Sept 30 slumped by 20.1 per cent to US$24.3 million.

The higher net loss was due mainly to other losses of US$3.6 million compared to other gains of US$1.4 million in the same period last year.

Selling, general and administrative expenses in the first quarter fell by 12 per cent, mainly due mainly to lower level of sales.

Research and development expenses shrank by 18 per cent as a result of cost cutting actions taken by management in the fourth quarter of the last financial year.

Other losses of US$3.6 million were due mainly to foreign exchange loss of US$3.3 million.

Loss per share worsened to 0.14 US cent from 0.08 cent previously while net asset value per share slipped to US$1.84 compared to US$1.93 as at June 30.

Creative expects no major improvement in the difficult and uncertain market conditions, and the overall market for its products remains challenging.

However, revenue is expected to be higher for the holiday season in the second quarter compared to the current level and the group expects an improvement in operating results for the quarter from the current level.