04-08-2011, 08:27 AM
(This post was last modified: 23-10-2013, 03:07 PM by CityFarmer.)
A very long and extended fall from grace, which is still continuing till this day, compared to its Sound Blaster heydays.....sad. At its peak, Creative (I believe) traded at $25 per share.
Aug 4, 2011
Worsening losses at Creative Technology
THERE is no end in sight to the flow of red ink at Creative Technology.
The home-grown company, famed for its Sound Blaster cards, yesterday reported a worsening of its fourth-quarter net loss to US$19.7 million (S$23.8 million), from US$11.7 million a year ago.
This takes its net loss for the year ended June 30 to US$47.2 million, up from US$38.8 million in the previous year.
The mainboard-listed company also gave a gloomy assessment of its near-term prospects.
'For the current quarter, operating expenses are expected to be lower as a result of a restructuring exercise,' it said.
'However, with the challenging overall market for the group's products, the group expects to report an operating loss.'
Fourth-quarter revenue shrank to US$47.4 million from US$59.2 million, while sales for the full year fell by 16.1 per cent to US$231 million.
Creative explained that it continued to be affected by the difficult market for its products, particularly those relating to personal digital entertainment.
The fall in revenues was seen across all three geographical regions in which it operates: the Asia-Pacific, the Americas and Europe.
Gross profit margin was slashed to 7 per cent in the fourth quarter, compared with 24 per cent in the same period last year, due primarily to restructuring charges of US$4.2 million.
The restructuring charges comprised mainly employee severance costs, inventory write-downs and other charges relating to the discontinuance of certain businesses.
If the effect of these charges were excluded, gross profit margin in the fourth quarter would have been 16 per cent.
Full-year loss per share widened to 68 US cents, from 56 US cents previously, while group net asset value per share slipped to US$3.47 from US$4.16.
Looking at its current financial year, Creative noted that there was higher uncertainty in the global economic environment and the overall market for the group's products remained challenging.
'The group will continue to take steps to reduce operating expenses to bring them in line with the group's revenue and gross margins, targeting to return to profitability by the end of this calendar year,' it said.
Despite a horrible year, Creative will continue to pay a final dividend - at 5 cents a share, down from 10 cents last year.
Creative shares yesterday fell 12 cents, or 4 per cent, to $2.85. The results were announced after the market closed.
Aug 4, 2011
Worsening losses at Creative Technology
THERE is no end in sight to the flow of red ink at Creative Technology.
The home-grown company, famed for its Sound Blaster cards, yesterday reported a worsening of its fourth-quarter net loss to US$19.7 million (S$23.8 million), from US$11.7 million a year ago.
This takes its net loss for the year ended June 30 to US$47.2 million, up from US$38.8 million in the previous year.
The mainboard-listed company also gave a gloomy assessment of its near-term prospects.
'For the current quarter, operating expenses are expected to be lower as a result of a restructuring exercise,' it said.
'However, with the challenging overall market for the group's products, the group expects to report an operating loss.'
Fourth-quarter revenue shrank to US$47.4 million from US$59.2 million, while sales for the full year fell by 16.1 per cent to US$231 million.
Creative explained that it continued to be affected by the difficult market for its products, particularly those relating to personal digital entertainment.
The fall in revenues was seen across all three geographical regions in which it operates: the Asia-Pacific, the Americas and Europe.
Gross profit margin was slashed to 7 per cent in the fourth quarter, compared with 24 per cent in the same period last year, due primarily to restructuring charges of US$4.2 million.
The restructuring charges comprised mainly employee severance costs, inventory write-downs and other charges relating to the discontinuance of certain businesses.
If the effect of these charges were excluded, gross profit margin in the fourth quarter would have been 16 per cent.
Full-year loss per share widened to 68 US cents, from 56 US cents previously, while group net asset value per share slipped to US$3.47 from US$4.16.
Looking at its current financial year, Creative noted that there was higher uncertainty in the global economic environment and the overall market for the group's products remained challenging.
'The group will continue to take steps to reduce operating expenses to bring them in line with the group's revenue and gross margins, targeting to return to profitability by the end of this calendar year,' it said.
Despite a horrible year, Creative will continue to pay a final dividend - at 5 cents a share, down from 10 cents last year.
Creative shares yesterday fell 12 cents, or 4 per cent, to $2.85. The results were announced after the market closed.
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