Earnings: Creative Narrows Loss

Pointing to weaker than expected sales in Asia and the U.S. on Tuesday, Creative Technology (Nasdaq: CREAF), a maker of MP3 players, still managed to narrow its FY 3Q07 net loss to $23.6 million, with a loss per share of $0.28, compared to a net loss of $114.3 million with a loss per share of $1.38 for the same period last year. Revenues for the quarter came in at $183.8 million, versus revenues of $225.7 million in the prior year. The company also reported:

— During the earnings onference call Craig McHugh, president of Creative Labs, said its personal digital entertainment unit, which includes its line of Zen MP3 players and web cameras, contributed 52 percent of total sales in the period. This compares to 68 percent of revenues that segment contributed last quarter and 60 percent of revenues from PDE in the same quarter of last year.

— McHugh added the company is partnering with Wal-Mart’s download store. “If we look at the Wal-Mart online offering, I think it expands the capabilities that Creative has. They have a vast array of content partners. We are very excited about it short-term and what it could mean long-term

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