Creative Technology reports fiscal 3Q swung to a net profit

U.S. one-dollar and five-dollar currency notes; taken September 2018.U.S. one-dollar and five-dollar currency notes; taken September 2018.

Creative Technology reported Tuesday a fiscal third quarter net profit of US$10.03 million, swinging from a year-earlier net loss of US$3.76 million, amid gains from a patent lawsuit settlement.

Net sales for the quarter ended 31 March fell 15 percent on-year to US$12.72 million as “uncertain and difficult market conditions” affected sales of the company’s products, Creative said in a filing to SGX after the market close.

Total expenses increase 21 percent on-year in the quarter to US$11.44 million amid legal expenses for patent litigation, Creative said.

The other gains of US$17.3 million in the fiscal third quarter were mainly due to US$17.9 million received from the settlement of patent lawsuits, the filing said.

For the nine-month period, Creative reported a net loss of US$1.0 million, swinging from a net profit of US$14.84 million in the year-ago period.

In its outlook, Creative said it expected no significant change in market conditions.

“Revenue in this quarter is expected to be comparable to the current level, and the group expects to report an operating loss,” it said.

 

 

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