SINGAPORE (Oct 19): Creative Technology swung back into profitability, posting 1Q18 ended Sept earnings of US$22.8 million ($30.9 million), compared to a loss of US$6.21 million in 1Q17.
Other gains saw a US$31.6 million increase to US$32.0 million, compared to US$459,000 last year. This was due to US$31.2 million received from settlement of patent lawsuits and US$0.6 million foreign exchange gain.
However, revenue for 1Q18 dropped 7% to US$16.1 million from US$17.3 million the previous year due to uncertain and difficult market conditions which continued to affect the sales of the group’s products.
Selling, general and administrative expenses in 1Q18 increased by 35% to US$10.5 million compared to US$7.80 million in 1Q17.
This was due mainly to higher legal expenses for on-going litigations. Excluding legal fees, there was no significant increase in selling, general and administrative expenses.
Cash and cash equivalents as at Sept 31 stood at US$92.8 million.
On its outlook, Creative expects no significant change in the market conditions and overall market for its products remains challenging.
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.
Shares in Creative closed at $1.18 on Thursday.
