Creative expects Q3 revenue to plummet to US$80m

[makapaaa]

<TABLE cellSpacing=0 cellPadding=0 width=452 border=0><TBODY><TR><TD vAlign=top width=452 colSpan=2>Published April 4, 2009

</TD></TR><TR><TD vAlign=top width=452 colSpan=2>Creative expects Q3 revenue to plummet to US$80m
The company says that it has continued its efforts to reduce operating costs

By ONG BOON KIAT
<TABLE class=storyLinks cellSpacing=4 cellPadding=1 width=136 align=right border=0><TBODY><TR class=font10><TD align=right width=20></TD><TD>Email this article</TD></TR><TR class=font10><TD align=right width=20></TD><TD>Print article </TD></TR><TR class=font10><TD align=right width=20></TD><TD>Feedback</TD></TR></TBODY></TABLE>CREATIVE Technology yesterday said it expects revenue for its FY2009 third quarter to come to about US$80 million - a sharp fall from the previous Q3's figure of US$150.3 million.

<TABLE class=picBoxL cellSpacing=2 width=100 align=left><TBODY><TR><TD></TD></TR><TR class=caption><TD>UNCLEAR FUTURE
Creative blamed the impact of the global economic downturn, which dented demand for the company's products</TD></TR></TBODY></TABLE>If the projection holds, it would be the first time since FY1993 that revenue has dipped under US$100 million in a quarter.
In a statement yesterday, Creative said that gross margin for its Q3, which ended on March 31, is expected to come to about 10 per cent. This compares with 23.1 per cent for the corresponding quarter last year.
On its downbeat projections, Creative blamed the impact of the global economic downturn, which dented demand for the company's products.
It also mentioned its decision to close and consolidate certain businesses in order to focus on specific markets.
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</TD></TR><TR><TD bgColor=#fffff1><TABLE cellSpacing=0 cellPadding=0 width=124 align=center border=0><TBODY><TR><TD vAlign=top>The 28-year-old local tech group is battling one of its toughest periods in recent years.
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</TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE>Creative said yesterday that it has continued its efforts to reduce operating costs. The 28-year-old local tech group is battling one of its toughest periods in recent years.
It posted net losses of US$32.4 million and US$32.2 million for the second and first quarters of its current fiscal year, respectively.
Revenues for both quarters were also lower compared to the previous year.
The company last month announced that it is cutting about 300 jobs worldwide, primarily in Europe and the US. It also said it will incur restructuring charges of about US$10 million for Q3.
Creative shares closed three cents higher yesterday at $3.45. [/FONT]
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[popdod]

See bei cham!

From a high profile local SME turned into MNC...and now risk itself
to become back to SME.

Any retrenchments going on...

:o :( :o

 

[johnny333]

See bei cham!

From a high profile local SME turned into MNC...and now risk itself
to become back to SME.

Any retrenchments going on...

:o :( :o

Still remember back when Creative shares were higher than Apple shares. Back then everyone though that Apple was on the way out but Steve Jobs returned & turn around the company.

Don't see how Creative can survive with the same management & philosophy

 

[singveld]

their doom are seal when every motherboard have built in sound
and they are getting better and better

 

[popdod]

Don't see how Creative can survive with the same management & philosophy

Maybe they gonna make handphone...
like how Sony masok Ericsson...and bcome Sony ericsson.

The first local brand handphone?
cPhone.

:p

 

[scoobyhoo]

Maybe they gonna make handphone...
like how Sony masok Ericsson...and bcome Sony ericsson.

The first local brand handphone?
cPhone.

:p

bro, Mr. Sim ought to thank you for your suggestion - not only concentrate on present core sound products. he should look into the possibilities of integrating his products with other social functions.

 

[Cestbon]

Intel AC97 kill Creative. After more than a decade AC97 still cheap and good.

 

[snrcitizen]

Still remember back when Creative shares were higher than Apple shares. Back then everyone though that Apple was on the way out but Steve Jobs returned & turn around the company.

Don't see how Creative can survive with the same management & philosophy

He's got too many Malaysian PR's hired in the management who are playing dirty politics against each other on a daily basis to have the time to think of new innovations and what is good for the future of the company.

Chartered Semiconducter sama sama, so it is no coincidence where both of these companies are heading.

 

[ah_phah]

ho seh liao, now as long as everybody dun buy creative products, very soon creative gotta lausai n sell their stuff cheap cheap. so, maybe next IT show, they gonna shout "CHEAP BUY, CHEAP BUY, come n buy, come n buy....... good buy, CHEAP BUY, must buy!"

 

[johnny333]

He's got too many Malaysian PR's hired in the management who are playing dirty politics against each other on a daily basis to have the time to think of new innovations and what is good for the future of the company.
.

You'll find politics everywhere but it takes good management to control it. Sim got the right idea with the sound card but thats about it, a one product company.

Must be the Spore environment, bureaucrats & bean counters are barriers to innovation

 

[snrcitizen]

You'll find politics everywhere but it takes good management to control it. Sim got the right idea with the sound card but thats about it, a one product company.

Must be the Spore environment, bureaucrats & bean counters are barriers to innovation

Sim is a techie who needs to hire real good management. However the current batch of PRs hired are just playing dirty politics.

Your comment on S'pore environment has also played a big part in stifling local development. The MIW just want to import MNC's to do development (another attempt at quick fix and glory) and give them all the backing. For locals, wait long long. This has been going on for decades.