Creative has announced a net loss of US$32.4M ending last quarter while the revenue is slightly higher at $155.7M compared to $141.2M the previous quarter. The loss is expected and the COO of Creative has hinted on more difficult times ahead of the company.
Looking at the balance sheet in details, Personal Digital Entertainment business still contributes more than 50% of the revenue and it is no doubt Creative will continue to put more emphasis into it. Their soundcard business, on the other hand, has been pretty stagnant while their speakers and headphones business is seeing some declines.
It seems it would take a miracle to turn around Creative's book right now. However, the recent announcement of the Zii platform could inject some hope into the business. Now, what is left to be done for Creative is to get as many developers on board Zii platform and develop innovative products based on Zii.
Certainly, we would be waiting patiently for the first Zii product to be out. It is rumored to be a touchscreen PMP with computing and WiFi functionalities out somewhere in Q2. I would reckon and hope that it is using embedded Linux so software developers could write apps to run on it. Creative is moving towards Open Source which is one step in the right direction.
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