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Creative Technology on Tuesday night posted a net loss for the three months ended September 30, attributing the slack to sluggish sales.
The three months slump in performance reverses from the previous quarter’s profit of US$22.8 million. Gains from the previous quarter came about through foreign exchange conversion gains and profit made from the settlement of patent lawsuits.
Due to “uncertain and difficult” market conditions, revenue for the quarter fell by 18% from a year ago's US$16.1 million to US$13.2 million, Creative said.
The company expects no significant change in the problematic market conditions and said the overall market for its products remains challenging.
But Creative thinks the year-end festive period is likely to provide some respite, helped by the sales of its Super X-Fi products. Operating performance for October to December is expected to improve from the earlier quarter, it said.
In spite of the bearish report, the stock defied expectations to stay in the green as investors remain optimistic in the potential of the firm’s new products.
The tech firm announced the sales for its Super X-Fi audio devices in the United States on Monday, claiming that 99% of customers in Singapore are satisfied with the products. The announcement sent the firm’s stock soaring 12.5% to close at S$6.09 on Monday.
At 10.40am Singapore time on Wednesday, Creative’s shares were trading higher, up 0.66% or S$0.04, to S$6.11.