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Wednesday, November 01, 2006

Creative post's loss in its Q1

Creative had reported a wider loss then what analysts expected. This is largely due to the Mp3 division as Apple computer's Ipod outsold Zen by 23 to 1. The net loss was US $21 million ($32.8million) or 25 cents per share. This is terrible compared to the previous quarter which ended on 30 September when it posted a profit of US$691,000 per 1 cent per share. Sales also fell 14 per cent to US $241.5 million. After being beaten in the MP3 market, Creative decided to make accessories for the Ipod. It also received US $100 million for the patent lawsuit.

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