Creative Technology Shares Rise After 58 Percent Drop in First-Qtr
Profit
Creative Technology Rises After 58% Decline in 1st-Qtr Profit
Singapore, Oct. 28 (Bloomberg) -- Creative Technology Ltd.'s shares rose 3.7 percent after the world's biggest maker of devices that enhance audio in personal computers said its first- quarter profit fell 58 percent, matching analysts' expectations.
Given tough global economic conditions, '' it's a strong quarter,'' said Russell Tan, an analyst at DBS Investment Research Pte.
Creative shares in Singapore rose 70 cents to S$19.50. The company said last night its profit for the quarter ended Sept. 30 fell to $21.5 million, or 23 cents a share, from profit before a gain of $51.6 million, or 55 cents, a year ago. Earnings met the average estimate of seven analysts polled by First Call Corp.
Analysts said the decline stemmed from a delay in the shipment of its new sound cards called ''SoundBlaster Live.'' In the first quarter a year earlier, its new sound card product had been in the market for seven months.
The company met Wall Street's expectations by ''overcoming difficult
economic conditions,'' Sim Wong Hoo, chairman and chief executive said in a statement.
Creative Technology had to slash prices on its sound and graphics cards to try to reduce inventory levels and deal with increased competition. It also has been hurt by slowing growth in demand for personal computers.
Creative Technology's stock surged 16 percent earlier this month after the company won approval from the Singapore Stock Exchange to buy back
9.3 million shares.
Creative Technology's U.S. shares rose 3/4 to 12 1/8. It disclosed results after the close of U.S. trading.
In the year-ago period, Creative had a gain of $18.5 million, or 19 cents a share, for the sale of investments, resulting in net income of $70.1 million, or 74 cents a share. There were no gains or charges in the most recent quarter. |
