Creative Technology rakes in $47 million in net profit from gains, licensing income

HOMEGROWN Creative Technology has roared back into the black in the second quarter, with a net profit of US$38.1 million (S$46.9 million).

Sales for the three months ended Dec 31 rose by 10.1 per cent to US$65.6 million.

The improvement in net results was due mainly to the US$20 million licensing income and other gains of US$26.3 million.

Thanks to the licencing income, gross profit margin amounted to 47 per cent.

If it was excluded, gross profit margin would have been 24 per cent.

Creative, famed for its sound blaster cards used in computers, also managed to reduce expenses.

Selling, general and administrative expenses decreased by 12 per cent, due mainly to lower level of sales and cost cutting actions taken by management.

Research and development expenses fell by 15 per cent, also due mainly to cost cutting measures.

Earnings per share amounted to 54 US cents, reversing from loss of 49 US cents previously while net asset value per share climbed to US$2.58 compared to US$2.12 as of June 30, last year.