Feeds

Apple deal drives Creative income, revenues skyward

Made more money licensing MP3 player patent than selling MP3 players

Choosing a cloud hosting partner with confidence

You can see now why Creative Technology's now so pro-iPod - last month it announced a range of 'Made for iPod'-branded accessories. Its latest financial results, posted last night, show a massive upswing in revenues thanks, we'd say, to Apple's move to license Creative's key MP3 player patent.

The effect: an additional $82m net income during Q2 FY2007 on top of the $9.9m Creative earned selling its own Zen MP3 players, its X-Fi sound enhancement hardware, speakers and so on. The year-ago quarter yielded comparable earnings of $6.9m once investment gains made in both quarters are excluded.

Revenues for the period were $424.4m, up from $390.8m in Q2 FY2006. Apple's licence contributed $100m in revenues, making for a gross margin of effectively 82 per cent.

Creative sold 2.5m MP3 players in the quarter, a figure dwarfed by the 21m iPods Apple shifted in the same period. So you can see why Creative wanted that licence signed. Apple agreed to the deal in August 2006. Creative had been threatening Apple for some time, but finally placed the matter in the hands of the lawyers in May 2006. A few days later, Apple counter-sued.

Intelligent flash storage arrays

More from The Register

next story
Chipmaker FTDI bricking counterfeit kit
USB-serial imitators whacked by driver update
Xperia Z3: Crikey, Sony – ANOTHER flagship phondleslab?
The Fourth Amendment... and it IS better
Don't wait for that big iPad, order a NEXUS 9 instead, industry little bird says
Google said to debut next big slab, Android L ahead of Apple event
Microsoft to enter the STRUGGLE of the HUMAN WRIST
It's not just a thumb war, it's total digit war
A drone of one's own: Reg buyers' guide for UAV fanciers
Hardware: Check. Software: Huh? Licence: Licence...?
The Apple launch AS IT HAPPENED: Totally SERIOUS coverage, not for haters
Fandroids, Windows Phone fringe-oids – you wouldn't understand
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.