Feeds

Creative posts $100 million Q3 loss

But has still managed some 'important successes' apparently

  • alert
  • submit to reddit

New hybrid storage solutions

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 next step in data security

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Protecting users from Firesheep and other Sidejacking attacks with SSL
Discussing the vulnerabilities inherent in Wi-Fi networks, and how using TLS/SSL for your entire site will assure security.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.