+Singapore's Creative Dn 6% To S$18.80 On Earnings Let-Down
For the full year ended June 30, earnings per share fell 23% to US$1.42 from US$1.84 the previous year. Net income for the year after one-time write-offs fell 19% to US$134.8 million from US$167 million.
Fourth-quarter sales, which were largely within expectations, fell 9.7% to US$253 million, consistent with the group's warning in June.
Some analysts said they were disappointed with Creative's depressed gross margins of 25%, compared with slightly higher than 30% traditionally. Creative, however, seems upbeat on its current financial year. Creative's Chairman Sim Wong Hoo said in a statement: 'Preparing for the year ahead, we have the best product line-up in our history. With the shipment of our much-anticipated Sound Blaster Live! last week; the growing acceptance of our PC-DVD (personal computer-digital video disc) drives; the strength of our speaker business; and the phenomenal popularity of our graphics solutions,
we anticipate a solid financial year ahead.'
At 0244 GMT, Creative has slid 6.5%, or S$1.3, to S$18.70.
-Netty Ismail; 65 -421 -4804; ismail.netty@cor.dowjones.com
(END) DOW JONES NEWS 08 -06 -98
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