Guys HEE HAA...Also good news on Creaf:
10/27 by Multimedia Week,
Creative Technology Ltd,s stellar third quarter earnings are an indication that building components for sub-$1000 sub PCs is not the only way to profit,particularly if you can keep expenses low and gross margins high.
While PC makers selling through retail are struggling to sell high-end multimedia desktops in volume,Creative had a bang-up quarter,largely due to aftermarket sales of the peripherals and the company expects revenue gains from sale of its second-generation DVD kit in the current quarter.
"They are selling a lot of the AWE64 at a high margin"said Jeff Lin
an analyst with Nation"s Bank Montgomery Securities.
This product line was introduced at Comdex a year ago and already has surpassed the company's flagship sound blaster 16 in revenue.
Craig Mchugh,Creative's vice president and general manager,told
Multimedia Week a significant cut in operational expenses came from a change in manufacturing.The company now houses sales and manufacturing under a single factory in Singapore as a way to "save costs per square foot"Other savings came from leveraging R&D from companies Creative has investments in,including Cambridge and 3Dlabs.
Nation Bank"s Lin also said the company is pretty well positioned to make the transition in sound chips and that the company's name,not just the sound blaster moniker,still carries a lot of weight with PC-savy buyers at retail.
Look for Creative to debut PCI products at Comdex next month,including a motherboard connector that allows OEMs to add the technology while maintaining sound blaster compatibility.Sim Wong Hoo said Creative has met with many Taiwanese companies that wew worried about putting the chip on the motherboard.
"We have convinced most of them to put the connector onto the motherboard,"he said.
For the full report refer to Comdex news.
Good Luck |
