The Motley Fool Singapore
2019-09-04 09:57:00
Creative Technology Just Reported a Full-Year Loss. Should We Ring the Alarm Bells?
Creative Technology Ltd (SGX: C76) is a homegrown technology and electronic products company. Founded in 1981, the group was famous for launching the Sound Blaster Pro sound cards in 1989 that make it a global leader back then. Creative has a channel distribution network in more than 80 countries in Asia, North America, and Europe.
In its recent full-year 2019 (FY 2019) earnings report (the group has a 30 June fiscal year-end), Creative reported a 14% year-on-year decline in FY 2019 revenue as well as a loss of US$3.8 million. This was despite a litigation settlement amount of US$17.9 million recognised in the books, which meant losses would have exceeded US$20 million if this was adjusted out from the results.
With such dismal numbers, should investors be worried?
Unable to monetise Supe