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Investor CentralCreative Technology Ltd. - Will the win against Apple result in a one-time or recurring payment?
Wednesday, 17 February 2016 - Creative has stopped paying dividends and is reducing its research and development efforts as part of cost cuts throughout the organisation.
Investor Central. Asian insights for global investors. We ask the tough questions of Asian companies to which global investors need answers.
1. Will the win against Apple result in a one-time or recurring payment?
Creative said on 30 October 2015 that its subsidiary Ziilabs has won its patent infringement lawsuit against Apple.
The lawsuit, filed in 2014against Apple and Samsung, alleged that certain products of Samsung such as the various Galaxy phones and tablets and laptops, and Apple, including the various ranges of the iPhone and iPad, iMac and MacBook Pro, infringe a number of ZiiLabs patents.
ZiiLabs owns more than 100 US patents in the graphics, processor and 3D spaces.
The dispute with Samsung is not yet resolved.
Apple will take a license for Ziilabs' patents.
Creative said the license payment will contribute about US$0.23 of earnings per share to its quarter ending 31 December 2015 (Q2FY16).
Based on Creative's Q1FY16 issued and paid up capital of 70.3 mln shares, this works out to about US$16 mln.
But is this a one-time license payment or a recurring one?
2. What is its best-selling product?
Creative has many products in its catalogue - the Soundblaster sound cards, headphones, speakers and web cameras.
What is its best-selling product of the past year?
What is the "next big thing" it has in the pipeline?
Has it thought about reducing its catalog and focusing instead on the better selling products?
(Read the full story to get all 8 questions)
We have invited the company (yochong@ctl.creative.com) to an on-camera interview, and/or to reply to our questions in writing.
At the time of publication we have not received a reply (which is why you are seeing this message).
We will update this report if we do.
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