Yahoo Finance Creative Technology reports smaller loss of US$4.1 mil for 1HFY2024
For the 2HFY2024, Creative says it expects to see higher revenue and GPM as well as a lower operating loss.
Creative Technology has reported a smaller loss of US$4.07 million ($5.47 million) for the 1HFY2024 ended Dec 31, 2023, 62% better than the US$10.6 million loss in the same period the year before.
Net sales rose by 13% y-o-y to US$31.8 million, due to higher revenue from the launch of new products.
Gross profit surged by 63% y-o-y to US$9.6 million as gross profit margin (GPM) stood at 30%, up from the 21% in the 1HFY2023.
No dividends were declared.
Cash and cash equivalents stood at US$52.1 million.
In its Feb 7 statement, the company says it has developed a business plan that will grow its revenue and margins despite the challenging business environment on the whole due to geopolitical tensions, high business costs and subdued market demand.
It adds that its strategy to grow the headphone business is “progressing on track”.
“We are the front runner in introducing MEMs technology in headphones by launching the Aurvana Ace series, which has gained global recognition. We will continue to exploit technology to transform the mass market and further establish our position in the headphone business with a series of new MEMs and Super X-Fi products being planned for launch in the current year,” it adds.
For the 2HFY2024, Creative expects to see higher revenue and GPM. It also expects to see an improvement in operating results and a lower operating loss.
In a separate filing, Creative announced several redesignations.
With effect from Feb 7, Song Siow Hui will become CEO from interim CEO. Song became the company’s interim CEO when founder, chairman and previous CEO, the late Sim Wong Hoo died on Jan 4, 2023. Song was previously the president of Creative Technology C76’s creative labs business unit.
Lee Kheng Nam will now become non-executive independent chairman of the company from acting chairman while Ng Kai Wa will become the company’s non-executive independent vice-chairman from acting vice-chairman.
Shares in Creative closed 4 cents lower or 3.03% down at $1.28 on Feb 7.
See Also:
Click here to stay updated with the Latest Business & Investment News in Singapore
Union Steel reports earnings of $7.0 mil, 27.7% higher y-o-y
Thomson Medical earnings down 91% y-o-y to $2.0 mil in 1HFY2024
Raffles Education reports 1HFY2024 earnings of $2.1 mil, 66% lower y-o-y
Get in-depth insights from our expert contributors, and dive into financial and economic trends
