“Creative Technology Ltd., whose music players compete with Apple Inc.’s iPods, reported its fourth loss in five quarters after sales in the U.S. and Asia were lower than the company expected,” Mark Lee reports for Bloomberg.
“The net loss narrowed to $23.6 million in the fiscal third quarter ended March 31, from $114.3 million a year earlier, the Singapore-based maker of Zen and MuVo music players said today. The loss a year earlier was widened by a $41.6 million one-time restructuring charge for a unit,” Lee reports.
“Creative said today that job cuts will help operating expenses fall 20 percent by the end of September. The company is seeking to boost sales and profit by supplying Cupertino, California-based Apple with iPod accessories and providing outsourced production,” Lee reports.
“Creative received $100 million from Apple in October after the two companies settled a patent dispute over content- navigation technology used in iPods. The payout helped Creative post a record $92 million net income in the three months to Dec. 31, the first profit in four quarters. As part of the resolution, Creative would become a supplier of accessories for Apple’s iPod, the two companies said,” Lee reports.
Lee reports, “The iPod had about 72.7 percent share of the digital music player market in the U.S. in January, according to research company NPD Group Inc. Sandisk Corp. had 8.9 percent, while Creative’s share was 2.9 percent.”
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