Creative Posts Record Q2 Revenues But Income Falls

SINGAPORE (01/28/2000) - Multimedia systems vendor Creative Technology Ltd. posted revenue of US$436.8 million for the second quarter of its fiscal 2000 year, ended Dec. 31, 1999. This is the highest quarterly revenue in the company's history, 1.9 percent higher than the $428.7 million reached in the second quarter last year, the company said in a statement yesterday.

Nasdaq-listed Creative, best known for its Sound Blaster PC audio/video card range and its Nomad and Lava MP3 music products, posted net income of $44.5 million in the quarter, 26 percent lower than the equivalent quarter last year.

Creative incurred about $16 million of operating expenses in advertising, marketing, R&D and infrastructure to develop its Internet-related businesses in the second quarter, the company said.

Sales for the first six months of fiscal 2000 were $705.9 million, compared to $707.7 million for the same period last year.

Creative has invested over $70 million in 20 start-up companies in a move to broaden its market reach to embrace the Internet, chief executive officer Sim Wong Hoo said in the statement. Creative's stock fell 31 cents to $16.93 during yesterday's trading on Nasdaq.

Singapore-based Creative can be contacted at +65-895-4717 or on the Web at http://www.ctlsg.creaf.com/.

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