Originally posted by ^tamago^:
[b]Creative sinks into red, struggles against
iPod
10 August 2006 1148 hrs (SST) 0348 hrs (GMT)
SINGAPORE - Creative Technology said Thursday it slipped into the
red for the year to June as the digital entertainment products
maker continued to struggle against Apple's iPod in the MP3 player
market.
The Singapore-listed firm chalked up an annual net loss of 118.2
million US dollars compared with a 588,000 dollar profit in the
previous year, amid market forecasts for a full-year loss of
128.7-140.0 million dollars.
Despite the full-year loss, Creative was upbeat the company could
return to profitability by the end of 2006 amid ongoing efforts to
trim expenses and hopes of a boost from the launch of new
products.
"During the fourth quarter, although we posted a loss for the
period and for the year, we made progress towards our goals," said
Craig McHugh, president of Creative Labs Inc.
He also pointed out that operating expenses were reduced by 17
percent from the previous quarter.
"Based on our progress in the fourth quarter, our focus on reducing
our operating expenses, and the market potential for our products,
we are targeting our return to profitability by the end of this
calendar year and continued profitability going forward," he
said.
Sales in the year to June totalled 1.13 billion dollars, down from
1.22 billion dollars in the previous year.
For the fourth quarter ended June, Creative narrowed its losses to
12.7 million dollars from 31.9 million dollars last year, partly
due to a 10-million dollar tax writeback.
Founded in 1981, Creative gained global fame for its SoundBlaster
card that allowed personal computers to be used as home
entertainment units but it has struggled recently after venturing
into consumer electronics.
Creative has targeted the MP3 player market as a key to growth but
has found it difficult to match Apple's iconic iPod which dominates
sales in the crucial US market.
At 10:45 am (0245 GMT), shares of Creative were trading at 8.70
Singapore dollars (5.54 US) each, up five cents from its close on
Tuesday. Financial markets in Singapore were closed Wednesday for a
public holiday. - AFP/ir [/b]
Even if ipod lose the case, creative will still suffer a very
great loss.
