informa
/
1 min read
News

Creative Revenues Down; Company Shifts Focus To High-End Products

Creative Technology announced financial results for fiscal Q1, posting sales of $182.3 million, down steeply from $304.4 million last year.
For the quarter, the company posted a net loss of $12.8 million ($0.17 per share). In Q1 last year Creative posted net income of $17.6 million ($0.21 per share). The biggest impact on the company's results came from losses associated with its venture capital investment portfolio. Excluding the effect of these investment write-offs, the company would have seen a net profit of $3.6 million ($.05 per share). Going forward, the company said it plans to concentrate on high-end products and low manage operating costs closely. "As we announced in last quarter's earnings release, we have taken major steps to refocus Creative on our core audio and personal digital entertainment products, and to de-emphasize lower margin products," said Craig McHugh, president of Creative Labs, Inc. "Executing upon this strategic shift was...to reduce operating expenses a further 11% to $55 million; to reduce inventory levels to $131 million; and to improve operating profit sequentially from the previous quarter."

Latest Jobs

Treyarch

Playa Vista, California
6.20.22
Audio Engineer

Digital Extremes

London, Ontario, Canada
6.20.22
Communications Director

High Moon Studios

Carlsbad, California
6.20.22
Senior Producer

Build a Rocket Boy Games

Edinburgh, Scotland
6.20.22
Lead UI Programmer
More Jobs   

CONNECT WITH US

Register for a
Subscribe to
Follow us

Game Developer Account

Game Developer Newsletter

@gamedevdotcom

Register for a

Game Developer Account

Gain full access to resources (events, white paper, webinars, reports, etc)
Single sign-on to all Informa products

Register
Subscribe to

Game Developer Newsletter

Get daily Game Developer top stories every morning straight into your inbox

Subscribe
Follow us

@gamedevdotcom

Follow us @gamedevdotcom to stay up-to-date with the latest news & insider information about events & more