SINGAPORE (Jan 30): Audio product maker Creative Technology has reported a slight improvement in its revenue, and a narrower loss for the 2Q ended Dec 31, 2019.
Revenue in the period increased by 6% y-o-y to US$17.2million ($23.4 million), from US$16.2 million in the year-earlier period. Losses narrowed from US$4.9 million to US$2.8 million.
A write-back of a provision made earlier helped put back US$620,000 into the bottomline.
The company said that its gross margin in the second quarter was 28%, two percentage points lower from the 30% year earlier. It blames higher US tariffs for increasing its cost of sales for certain products made by the company in China and sold to the US.
Creative Technology expects revenue for the next two quarters to be lower, and to report an operating loss. It notes that market conditions for its products remain challenging.
"The recent outbreak of the novel coronavirus in China may negatively affect market conditions, although the extent of its effect is presently uncertain,” the company says.
As at Dec 31 2019, the company had a cash balance of just shy of US$100.8 million, which works out to the equivalent of US$1.43 per share.
On Jan 30, Creative Technology shares dropped five cents to $2.90, valuing the company at $217.5 million.
