Creative Technology reported Wednesday a fiscal fourth quarter net loss of US$2.82 million, swinging from a year-ago net profit of US$25.57 million on year-earlier litigation gains and lower sales.
Net sales for the quarter ended 30 June declined 9 percent on-year to US$12.78 million as the “uncertain and difficult market conditions” affected product sales, the sound-technology player said in a filing to SGX.
The loss attributable to equity holders was US$2.83 million for the quarter, swinging from a year-ago profit of US$25.58 million, the filing said.
Other gains for the quarter were US$355,000, mainly on a foreign-exchange gain, down 99 percent from a US$30.67 million gain in the year-ago quarter, the filing said. In the year-ago quarter, Creative posted a US$32.6 million gain from litigation settlement, offset by a US$1.9 million foreign exchange loss.
For the full fiscal year, Creative reported a net loss of US$3.83 million, swinging from a year-ago net profit of US$40.41 million, on net sales of US$54.92 million, down 17 percent on-year.
Other gains for the full year were US$17.16 million, down 73 percent on-year, the filing said, adding the gain was mainly US$17.9 million received from settlement of patent lawsuits, offset by a US$500,000 fair value loss on financial assets and a US$400,000 foreign exchange loss.
In the previous fiscal year, Creative posted other gains of US$64.1 million, mainly on a US$63.8 million gain from litigation settlements.
In its outlook, Creative said it expected revenue to improve in its fiscal first quarter, but it anticipated an operating loss.
“For the current financial year, the coming introduction of a number of new products is expected to provide potential revenue growth opportunities and the group is targeting an improvement in revenue from the current level,” Creative said. “However, the uncertain global economic conditions and the ongoing trade tensions are expected to have a negative impact on the group’s revenue and the extent of such impact is uncertain at this time.”