Feeds

Apple deal drives Creative income, revenues skyward

Made more money licensing MP3 player patent than selling MP3 players

Top three mobile application threats

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.

Combat fraud and increase customer satisfaction

More from The Register

next story
Feast your PUNY eyes on highest resolution phone display EVER
Too much pixel dust for your strained eyeballs to handle
Samsung Galaxy S5 fingerprint scanner hacked in just 4 DAYS
Sammy's newbie cooked slower than iPhone, also costs more to build
Microsoft lobs pre-release Windows Phone 8.1 at devs who dare
App makers can load it before anyone else, but if they do they're stuck with it
Report: Apple seeking to raise iPhone 6 price by a HUNDRED BUCKS
'Well, that 5c experiment didn't go so well – let's try the other direction'
Rounded corners? Pah! Amazon's '3D phone has eye-tracking tech'
Now THAT'S what we call a proper new feature
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
US mobile firms cave on kill switch, agree to install anti-theft code
Slow and kludgy rollout will protect corporate profits
AMD unveils Godzilla's graphics card – 'the world's fastest, period'
The Radeon R9 295X2: Water-cooled, 5,632 stream processors, 11.5TFLOPS
Sony battery recall as VAIO goes out with a bang, not a whimper
The perils of having Panasonic as a partner
NORKS' own smartmobe pegged as Chinese landfill Android
Fake kit in the hermit kingdom? That's just Kim Jong-un-believable!
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.