Creative Technology narrows loss to US$5.7 million as expenses exceed gross profit

MAINBOARD-LISTED Creative Technology has posted a first-quarter loss of US$5.7 million for the period ended September, 7 per cent lower than the US$6.1 million red-ink for the corresponding period a year ago.

But revenue is expected to be higher for the holiday season in the second quarter of FY2020, with improvement also expected in the operating results, said Creative Technology in a statement released on Wednesday. 

The company reported revenue of US$14 million for the quarter, 6 per cent higher than the US$13.2 million a year ago. But its expenses amounting to US$9.4 million exceeded gross profit of US$4 million. This was in spite of a 10 per cent decline in selling, general and administrative expenses, mainly due to lower expenses for ongoing litigations.

This resulted in a net loss after tax of US$5.7 million. Therefore, loss per share was US$0.08 for the quarter, marginally better than the US$0.09 loss for the corresponding period a year ago.

Also, net asset value per share was lower at US$1.48 as at Sept 30, versus US$1.56 a quarter ago.

The company has declared no dividend, as was for the same period last year.

The counter ended 11 Singapore cents or 3.29 per cent lower at S$3.23 on Wednesday, before the financial results were released.