SINGAPORE (Aug 24): Creative Technology sunk into losses of US$22.9 million ($31.2 million) in FY17 from earnings of US$2.7 million in FY16 on the absence of other gains.
In FY16, the group recorded net other gains of US$40.2 million due mainly to US$33.5 million proceeds from settlements in patent lawsuit, US$2.7 million gain on disposal of investments, US$5.2 million from writeback of subcontract accruals and US$0.9 million impairment loss on investments.
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Net other losses in FY17 comprised mainly US$1.3 million gain on disposal of investments, offset partially by US$0.7 million impairment loss on investments and foreign exchange loss of US$0.7 million.
Sales for the full year fell 17% to US$70 million from US$84.6 million a year ago due to the uncertain and difficult market conditions which continued to affect the sales of the group’s products. Net sales in FY17 decreased across the three geographical regions by 11%, 34% and 19% in Asia Pacific, the Americas and Europe regions, respectively.
Looking ahead, Creative expects no significant change in the market conditions and overall market for the group’s products remain challenging.
Shares in Creative closed 2 cents higher at $1.22 on Wednesday.
