Creative Technology has reported earnings of US$1.2 million ($1.7 million) for the 1HFY2022 ended December, 27.5 times higher than earnings of US$45,000 in the same period the year before.
Earnings per share (EPS) came in at 2 US cents.
The surge in earnings is mainly due to the US$9.7 million netted in other gains, compared to the US$2.8 million in the 1HFY2021. The higher figure was attributable to the US$10.0 million gain on disposal of a US property by a wholly-owned subsidiary and offset by a foreign exchange loss of US$0.3 million.
Creative Technology’s net sales fell 28% y-o-y to US$34.2 million, due to the global shortages of semiconductors and delays in shipping schedules.
During the period, the company had faced shortages of certain products due to components unavailability and shipping disruptions.
Gross profit fell 27% y-o-y to US$11.6 million, although gross profit margin (GPM) inched up by 1 percentage point to 34%. GPM for the 1HFY2022 was affected by the sharp increase in freight costs and spike in prices of some semiconductor components.
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In spite of that, the higher GPM was due to a better sales mix of products with higher margins.
Net profit for the 1HFY2022 surged to US$1.2 million from US$100,000 before.
As at end-December, cash and cash equivalents stood at US$87.2 million.
No dividends were recommended for the period.
Looking ahead, Creative Technology says it expects to report an operating loss for the 2HFY2022, while targeting to keep its revenue at its current level.
The on-going supply chain disruption has continued to affect the company’s operating performance, where it continues to face shortages of certain products due to the unavailability of certain components.
As at 9.06am, shares in Creative Technology are trading 10 cents higher or 4.48% up at $2.33.
