Apple settlement massively boosts Creative’s Q2 profits

“Creative Technology Ltd. Wednesday reported net income of US$92.2 million for the second quarter of its fiscal year, largely due to a one-time licensing payment by Apple Computer Inc,” Sumner Lemon reports for IDG News Service.

“Creative, which makes MP3 players and PC audio components, said net income was sharply higher over the same period one year ago, when it reported net income of US$8.2 million,” Lemon reports.

Lemon reports, “The big jump in net income during the second quarter came largely from a US$100 million licensing payment received from Apple. That payment contributed $82 million in net income, Creative said. Excluding the Apple payment and investment gains, Creative’s net income for the second quarter was $9.9 million.”

Full article here.

Related articles:
Beleaguered Creative Technology suffers third straight quarter of losses – October 30, 2006
Creative does Apple’s dirty work by immediately attacking Microsoft’s Zune – September 17, 2006
Creative Tech: we will pursue all MP3 player- and cellphone-makers that infringe on ‘Zen patent’ – August 30, 2006
Apple investors cheer as Jobs wins again by getting Creative – August 24, 2006
Apple and Creative settle – the bigger picture – August 24, 2006
Analyst: Apple’s relatively small settlement with Creative removes threat hanging over iPod – August 23, 2006
Apple & Creative settle: Apple pays $100M for ‘Zen’ patent, Creative plans iPod accessories – August 23, 2006


  1. After getting the $150 Million from Apple, Creative went nuts.
    Someone recently told me (please don’t quote me) that during the last dinner & dance hosted by creative, every single guest who atteneded got a door gift of about $500 in cold hard cash.

    I’m guessing that Creative was freaking happy their accounts are now in the black for once ever since the introduction of Apple’s iPod that they had to splurge to show it.

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