Feeds

Creative posts $100 million Q3 loss

But has still managed some 'important successes' apparently

  • alert
  • submit to reddit

Gartner critical capabilities for enterprise endpoint backup

Creative Technology - the folk behind the SoundBlaster cards - has posted a $101 million loss for its third quarter, compared to a net income of $88.3 million in Q3 last year.

It's not the company's fault though, claims president Craig McHugh. This loss included one-off charges of $31 million and the stock market nobbled its investments, which fell $75.4 million. With losing this money, it would actually just have made money, the company said.

Sales fell from $330 million last year to $263 million this year, but these were in line with expectations, the company said.

As for the nine months of fiscal 2001, sales are down to $994.4 million from $1.036 billion last year.

"Between the difficulty of the economic climate and the restructuring of our businesses, this was a challenging quarter," said Craig. "However, we achieved some important successes during the period. We made significant reductions in our operating expenses that will better position us going forward. At the same time, we met our revenue target as we continued to generate strong demand for retail audio products. We substantially reduced our inventory level, achieving our target of net inventory of $200 million at the end of the quarter."

The company's chairman and CEO SimWong Hoo was naturally upset about losing over $70 million on their investments: "During the quarter, we sustained, for the first time, a net loss from our investment portfolio." But here comes the excuse: "The $75 million write-down from our investment portfolio should be taken in the perspective that we posted realized gains of $103.4 million in fiscal year 2000." That's alright then.

Creative also bought back about 892,000 of its shares for $8.6 million. ®

The essential guide to IT transformation

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer quits Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.