Creative Technology posts loss of US$2.8m for Q2FY20

CREATIVE Technology on Thursday said its net loss narrowed from US$4.92 million a year ago to US$2.8 million for the three months ended Dec 31. Sales rose 6 per cent to US$17.2 million, while loss per share worked out to four US cents, down from seven cents in the same period in 2018. For the six months ended Dec 31, revenue was 6 per cent higher at US$31.21 million, while net loss was trimmed to US$8.47 million, from US$11.04 million a year earlier. Looking ahead, Creative warned: "Market conditions for the group's products remain challenging, and the recent outbreak of the novel coronavirus in China may negatively affect market conditions, although the extent of its effect is presently uncertain.

"For the next two quarters, revenue is expected to be lower compared to the current level and the group expects to report an operating loss."

No dividend has been recommended in the second quarter of FY20, as was the case for the corresponding period a year ago.

Creative shares closed five cents lower at S$2.90 on Thursday before the results were announced.