Creative Technology reports fiscal 1Q net loss narrowed

Singapore two-dollar bills

Creative Technology reported Wednesday its fiscal first quarter net loss narrowed to US$5.67 million, from US$6.10 million in the year ago period as higher sales were offset by a larger foreign exchange loss and higher depreciation.

Net sales for the quarter ended 30 September rose 6 percent on-year to US$14.01 million, the company said in a filing to SGX.

Total expenses for the quarter declined 7 percent on-year to US$9.39 million, Creative said.

Creative posted a foreign exchange loss of US$957,000, wider than the US$301,000 loss in the year-ago quarter, mainly on the depreciation of the Singapore dollar, the euro, the British pound and Japanese yen against the U.S. dollar.

Depreciation rose to US$481,000 for the quarter, from US$52,000 in the year-ago period, on changes to accounting for leases, the filing said.

Selling, general and administrative expenses fell 10 percent on-year to US$6.09 million, mainly on lower legal expenses for on-going litigation, Creative said.

The company issued a cautious outlook.

“The group expects no significant change in the uncertain global economic conditions and the on-going trade tensions, and the overall market for the group’s products remains challenging,” Creative said. “However, revenue is expected to be higher for the holiday season in this quarter compared to the current level and the Group expects an improvement in operating results for the quarter from the current level.”

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