Creative Expects Loss of $60 Million

Creative disclosed Wednesday that it expected to report a loss for the quarter ending March 31, which it blamed on falling prices of flash memory. The Singapore-based electronics marker will post a loss of between $55 to 65 million on revenue of $220 to 230 million. The company said the loss figures did not include a non-cash impairment charge of $25 million and $9 million to refocus its graphics business during the quarter.

Creative has struggled to stay competitive with Apple in digital media, and that has taken a toll on the company’s bottom line, say analysts. “The sharp drop in memory prices had a significant negative impact on sales in March and resulted in lower revenues and gross margins and inventory write-downs in the period,” Creative said in a statement.

News source: betanews


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