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CREATIVE Technology reported a net loss of US$14 million for its fourth quarter ended June 2009, including a provision of US$12.8 million for potentially unrecoverable loans due from a former subsidiary, compared with a net profit of US$116.2 million a year ago.
This brings net loss in FY2009 to a total US$137.9 million, compared with net profit of US$128.2 million in FY2008. The previous year included a gain of US$147.9 million from the sale of Creative's headquarter office and restructuring charges of US$11.2 million.
Net sales for the fourth quarter of FY2009 decreased by 38 per cent to US$86.06 million, while net sales for FY2009 decreased by 37 per cent to US$466.1 million.
The decrease in net sales was primarily a result of lower revenues from personal digital entertainment (PDE) which included sales of digital audio players and digital cameras.
Creative said that it had focused on a complete restructuring of its worldwide sales and marketing operations in FY2009.
The restructuring efforts have resulted in a significant reduction of fourth quarter operating expenses compared to the same quarter last year. The reductions were primarily in selling, general and administrative expenses as Creative has sharply reduced its international head count and infrastructure costs.
Looking forward, Creative said that it will intensify its focus on marketing its new Zii Platform. 'As a result of these marketing efforts, operating expenses will increase. The overall market for Creative's current products remains difficult and unpredictable, but Creative is targeting to further reduce its losses in the current quarter.'
It declared a dividend per share of 10 Singapore cents for FY2009. No dividend was paid in FY2008.
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