Creative Technology C76 has reported a loss of US$10.6 million ($14.1 million) for 1HFY2023, reversing from earnings of US$1.24 million recorded in the year earlier.
Revenue in the same period was US$28.2 million, down 17% y-o-y from US$34.2 million.
Besides lower sales, the company incurred higher research and development (R&D) costs.
Creative says that overall business environment remains uncertain with geopolitical tension and inflationary pressure.
“With these uncertain and difficult business conditions, the market for the group’s products remains challenging,” says the company in its earnings commentary.
Creative says that under former chairman and CEO Sim Wong Hoo, a restructuring exercise has resulted in a leaner organisation with a lower cost structure.
Sim, who founded and led the company for four decades, died on Jan 4.
As such, the company is able to “weather the challenges and adverse external impacts to its business environment.”
The company’s management team is also actively setting new strategic directions and developing new capabilities, while “remaining focused on its core strengths to work towards profitability and sustainable growth of the business.”
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Creative is “cautiously optimistic” on its outlook for the second half year of FY2023 with market sentiment and the supply chain environment improving.
With the restructuring, Creative expects revenue to be maintained at current levels but margins to improve and therefore, losses to be reduced.
Creative shares closed Feb 14 at $1.66, down 1.78% for the day.
