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

To: Dennis G. who wrote (13450)	2/1/1999 12:51:00 AM
From: Marc	Read Replies (1) \| Respond to of 13925

<<No matter how bad you think it will get, it will always get worse.>> Like the quote Dennis. I also remember a CC some time back some IR people over at CREAF were correcting false infos that was said on SI about the new SBL. Why aren't they responding to all those bloomberg articles that makes no F* senses. Last year they were all not taking** into account the write off and saying the earning were very low and now they like to compare this year earning to earning before the charge last year. ========================================= Creative Technology Falls After 19% Decline in 2nd-Qtr Profit Singapore, Feb. 1 (Bloomberg) -- Creative Technology Ltd.'s shares fell as much as 15.4 percent after the world's biggest maker of sound cards for PCs, said fiscal second-quarter earnings fell 19 percent because of price cuts and weak new product sales. ''The fall in share prices wasn't unexpected,'' said Stephen Chan, an analyst at Kay Hian Pte. Ltd. ''With smaller earnings outlook, falling gross margins, and flat revenues going forward, the (current) share prices won't be supported.'' Creative shares fell as much as 15.4 percent, or S$3.90, in early trading to S$21.40. About 973,500 shares changed hands, compared with a six month average of 21.6 million shares. Net income for the period ended Dec. 31 fell to $60.6 million, or 64 cents a share, from profit before charges of $75.0 million, or 79 cents, a year earlier. Profit matched the average estimate of seven analysts polled by First Call Corp. Sales rose 8.5 percent to $428.7 million from $395 million. Creative has struggled with falling prices even as it unveiled new products to enhance audio on PCs. There had been optimism that the new products would offset falling prices and rising inventory, which hurt results in the past two quarters. Competition Analysts estimate that graphics products account for almost a fifth of the Singapore company's sales. The competition comes as rivals, such as Diamond Multimedia Systems Inc., cut prices to sell excess products, forcing Creative to match those prices. In its second quarter, Creative unveiled its latest sound card model, called ''Soundblaster Live,''which is expected to bring in as much as 20 percent of fiscal 1999 sales. Sound cards account for about half of Creative's profit, analysts estimate. In the year-ago quarter, charges totaling $60.3 million resulted in net income of $14.7 million, or 15 cents a share. There were no gains or charges in the most recent quarter.