Creative Announces Q3 FY09 Financial Update
SINGAPORE - Apr. 3, 2009- Creative Technology Ltd. today announced that it expects its revenue for the third quarter of its 2009 fiscal year to come in at about US$80 million with gross margin of approximately 10 percent.
The projected revenue and gross margin for the quarter are substantially lower than the same period last year, due primarily to the impact the global economic downturn has had on demand for the Company's products and the Company's decision to close or consolidate certain businesses in order to focus on specific markets that provide the best opportunities to improve its business going forward. In addition the Company continued its efforts to reduce its operating costs going forward. As the Company announced on March 13, it will incur restructuring charges of approximately US$10 million in the third quarter.
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Creative is a worldwide leader in digital entertainment products. Famous for its Sound Blaster® audio cards and for launching the multimedia revolution, Creative is now driving digital entertainment on the PC platform with products like its highly acclaimed ZEN portable audio and media players. Creative's innovative hardware, proprietary technology, applications and services leverage the Internet, enabling consumers to experience high-quality digital entertainment -- anytime, anywhere.