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CREATIVE Technology remains mired in red ink but a narrowing of its loss in the fourth quarter against those of the previous three quarters suggest that things are looking up for the sound-card maker.
Net loss for the three months ended June 30 was US$14 million (S$20 million), reversing from a profit of US$116.2 million in the corresponding period last year.
The loss would have been marginal if provisions amounting to US$12.8 million were excluded for loans due from a former subsidiary that Creative divested itself of in 2007.
Revenue was 38.3 per cent lower at US$86.1 million, owing to lower sales from personal digital entertainment which included sales of digital audio players and digital cameras.
For the full year, net loss totalled US$137.9 million, against a profit of US$128.2 million previously, on the back of a 36.7 per cent slump in revenue to US$466.1 million.
Net profit last year was substantially boosted by a one-off gain of US$147.9 million from the sale of Creative's headquarters office building.
Some of Creative's numbers may confuse its followers as the company has transitioned from reporting its financial statements under the US GAAP to the Singapore financial reporting standards, following its delisting from Nasdaq.
Full-year loss per share was US$1.88 against earnings of US$1.55 previously while net asset value per share fell to US$4.30 from US$5.71.
During the year, Creative undertook a complete restructuring of its worldwide sales and marketing operations.
Looking ahead, it will intensify its focus on marketing its newly developed Zii platform, a new-fangled type of computer chip technology that will allow electronic device manufacturers to make more powerful and cheaper products.
Shares of Creative have rocketed this week, puzzling analysts and the stock exchange regulator alike.
Since last Monday, the stock has soared by 78 per cent to $6.77 in a trading frenzy.
Despite the red ink, Creative is recommending a final dividend of 10 cents a share.
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