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Technology Stocks : Creative Labs (CREAF) -- Ignore unavailable to you. Want to Upgrade?

To: CHIP HUNTER who wrote (8969)	1/26/1998 1:36:00 AM
From: Y. Samuel Arai	Read Replies (1) \| Respond to of 13925

Chip: Do you mean this article? ==================================================================== Dow Jones Newswires -- January 25, 1998 Singapore's Creative Tech Shrs Seen Stalling On Asia Fears AP-Dow Jones News Service SINGAPORE -- Despite its release of strong second-quarter earnings over the weekend, the stock of multimedia company Creative Technology Ltd. (CREAF) could fall when trading begins Monday on the Stock Exchange of Singapore, analysts say. 'Prices aren't likely to jump up given the mood of Mr Sim in the conference call,' said John Chan, analyst with G.K. Goh Research Pte. Ltd. 'He said Asia's going down the tubes (and) problems in Latin America will drag profits down. And revenues will be flat.' Creative Chairman and Chief Executive Sim Wong Hoo held a phone conference with analysts in Singapore and the U.S. to announce the company's results. As reported Friday, the company, which is listed in Singapore and on the Nasdaq Stock Market in the U.S., said its net income rose 32% to US$75 million. However, it also said it took a one-time charge of US$60.3 million relating to its purchases of sound-system and speaker maker Cambridge SoundWorks, audio microchip developer Ensoniq and low-end sound-chip maker Opti. Creative's results also showed sales in Asia as a percentage of total sales fell 28% on-the-year to 16.5% as a result of the prevailing Asian turmoil. The company's total sales in the second quarter rose some 2% to US$395 million. Analysts noted that Sim had warned that revenue growth for the rest of the fiscal year could be flat to 5% higher, compared to his forecasts of 10%-15% growth in earlier quarters. While the company's results are positive, analysts said investors are likely to focus on what lies ahead for Creative. Analysts said it's the uncertain road ahead which could stall the company's share price rise. Creative's shares had risen last week by some 7% closing the week at S$33.90, in anticipation of robust earnings, analysts said. The strong results already are reflected in the company's share price, which could start moving more in line with the broader market, which recently has underperformed in comparison with the stock, they add. 'It's in the price,' said an analysts with a local bank-backed broking house who declined to be named, said referring to the earnings. 'There was nothing unexpected. And given this sort of market, there should be almost no potential for a surge.' Analysts also said investors looking at the quarters ahead will realize they are seasonally the company's slowest periods, and expectations of an aggressive boost in the sales of Creative's new products may have to be dimmed. 'There are likely to be no earnings surprises on the upside,' the analyst who requested anonymity said. 'Their new products will take some time to be ramped up.' Some of the new products include PCI audio sound chips, with which Creative aims to provide high-quality sound performance to the low-end market.