Creative Technology

Creative Technology: narrowed its losses for 4QFYJun12, with a net loss of US$18.9m, but widened its full year losses to US$84.0m. This is the co's 3rd consecutive full year loss. 4Q12 revenue decreased 21.9% to US$37.0 m, due to the difficult and uncertain market conditions for the group's products, in the midst of global economic uncertainties, which impacted sales across all three geographical regions. Despite the decrease in sales, operating results in 4Q12 have improved due to reduction in operating expenses by US$14.1m yoy, as a result of the cost cutting actions taken in FY11. The group undertook a restructuring exercise in 4Q11 including worldwide headcount reductions as well as streamlining of certain businesses and product categories. The total restructuring charges were US$10.4m, of which US$4.2m was charged to cost of goods sold, US$2.2m to selling, general and administrative expenses and US$4.0m to R&D expense. 4Q12 loss per share was 0.27 US cents, while a year ago, loss per share was 0.28 US cents. Ytd net loss widened to US$84.0 m from US$47.2 m, while revenue decreased 17% yoy to US$191.8m. Nevertheless, Creative declared a final cash dividend of 5 cts/sh, unchg from last yr. The stock is -2.7% at $3.30. Trades at 1.6x P/B.