Sales for the first quarter of fiscal 1997 were US$284.0 million, compared to US$298.7 million for the same quarter last year. Net income for the quarter was US$14.7 million, compared to a net income of US$6.6 million for the same quarter last year. Earnings per share were US$0.17 compared to earnings of US$0.08 per share for the same quarter last year.
"These strong results affirm that our plan to focus on profitability is marching in the right direction," said Sim Wong Hoo, chairman and chief executive officer of Creative Technology Ltd. "The first step of this plan has been to return to profitability with operating expenses and inventory under control. The second step is to focus our resources on the development of new products and technologies that leverage our core strengths."
Recent Announcements
Creative has made a number of announcements in the past several months that reinforce its leadership position in the industry. These announcements include:
Internet Strategy and Interneted Audio:
Creative began shipping its new Interneted Sound Blaster™ line of audio cards which come bundled with powerful Internet software including Internet Explorer™ from Microsoft, Creative WebPhone™ from NetSpeak Corp., and RealAudio Player™ from Progressive Networks.
Internet Partnerships:
Creative entered into partnerships with technology companies - NetSpeak, Seer Systems, Inc., Onlive! Technologies and Progressive Networks. This will enable Creative to greatly expand its product line and integrate advanced audio, video, graphics and communications technology into media-rich Internet solutions for the consumer.
2D/3D Graphics:
Creative announced 3D Blaster PCI™, a 3D game card that provides superior 2D and 3D acceleration for games and entertainment titles as well as multimedia-rich Internet content.
Internet-Ready Multimedia Upgrade Kits:
Creative announced new multimedia upgrade kits targeted at the home PC user that includes high performance CD-ROM drives, the Sound Blaster audio cards along with the hottest Internet applications and multimedia titles for entertainment, education and productivity. These will be available from January.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Except for the historical information contained herein (including our guidance, if any, on future revenues, margins, expenses and earnings), the matters set forth herein are forward looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward looking statements. Such statements are subject to the attached cautionary statements which are provided pursuant to The Private Securities Litigation Reform Act of 1995.
About Creative ...
Creative Technology, Ltd., is the world's leading provider of multimedia hardware and solutions for personal computers, including sound, graphics, communications and video conferencing products with its Sound Blaster technology adopted as the world-wide standard sound platform for PCs.
Founded in 1983, Creative Technology's corporate headquarters are based in Singapore with international subsidiaries and affiliate offices in China, Europe, South Korea, Australia, Malaysia, Japan, Taiwan and the US. The European head office is based at Ruscombe near Twyford in the UK. In January 1994, Creative opened its European operations and technical centre in Dublin, which provides telephone support for European customers in six languages. Creative Labs Europe has grown eight-fold in the past three years with subsidaries in France, Spain, Italy, Germany, UK, Benelux, Denmark and Sweden. The European operation currently employs around 450 staff.
Safe Harbor for Forward Looking Statements:
Except for the historical information contained herein, the matters set forth herein (including our guidance, if any, on future revenues, margins, expenses and earnings) are forward looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward looking statements. Such risks and uncertainties include, among others: potential fluctuations in quarterly results due to the seasonality of Creative's business and the difficulty of projecting such fluctuations; reductions in the price of products sold by Creative, including increases in supply or declines in demand or prices for CD-ROM drives, board and chip-level products, and software products; the short product cycles that characterise most of Creative's products; the increasing proliferation of sound functionality at the chip, OEM and operating system levels; Creative's reliance on sole sources for many of its chips and other key components; the timely ramp, delivery and market acceptance of new products, including Creative's graphics accelerator, video conferencing, CD-ROM drive, communications and Interneted-related products; the availability of operating capital and capital to refinance Creative's outstanding long term debt on acceptable terms; the volatility of share prices for companies in Creative's industry and the effect of those prices or events beyond Creative's control; and other risk factors described in Creative's fillings with the Securities and Exchange Commission over the past twelve months.
Copyright ©1995, 1996
Creative Labs Europe