Creative Technology Announces Third Quarter Fiscal 2001 Results

Apr 26, 2001, 01:00 ET from Creative Technology Ltd.

    SINGAPORE, April 26 /PRNewswire/ --
 Creative Technology Ltd. (Nasdaq:   CREAF), the worldwide leader in digital
 entertainment products for the personal computer and the Internet, today
 announced financial results for the third quarter of fiscal year 2001, ended
 March 31, 2001.  All financial results are stated in U.S. dollars.
     Sales for the third quarter were in line with the Company's expectations
 at $263 million.  This compares to sales of $330 million for the same quarter
 of last year.
     The Company reported a net loss for the quarter of $101.0 million or
 $1.27 per share.  This includes one-time charges of $31.0 million and a
 write-down of investments of $75.4 million, which accounted for a combined
 $106.4 million or $1.34 per share.  Excluding these charges, the Company would
 have reported net income for the quarter of $4.6 million or $0.06 per share.
 Comparative results for the third quarter last year were net income of
 $88.3 million and earnings per share of $1.01.  This included net investment
 gains of $70.6 million or $0.80 per share.
     The third quarter one-time charges include a previously announced
 restructuring charge totaling $19.8 million, which comprises $7.8 million
 applied to cost of goods sold and $12 million of operating expense charges.
 Also included in operating expenses is a one-time charge of $11.2 million
 resulting from the write-off of the remaining value of the assets previously
 acquired from Aureal Semiconductor. The Company also took a $75.4 million
 write-down against its investment portfolio.  This includes a previously
 announced $65 million write-down of privately held technology companies,
 consistent with the Company's prior announcement; and a net unrealized loss of
 $10.4 million on quoted investments, reflecting the further worsening of
 public equity markets at the end of the quarter.
     Sales for the first nine months of fiscal year 2001 were $994.4 million,
 compared to $1.036 billion for same period in the previous year.  Net loss for
 the first nine months of fiscal year 2001 was $56.9 million, or $0.72 per
 share, including the previously noted one-time charges and write-down of
 investments totaling $106.4 million in the quarter, and net investment gains
 of $2.9 million from the previous two quarters.  This compares to net income
 for the first nine months of the previous year of $143.6 million or $1.66 per
 share, including net investment gains of $84.2 million.
      "Between the difficulty of the economic climate and the restructuring of
 our businesses, this was a challenging quarter," said Craig McHugh, president
 of Creative Labs, Inc.  "However, we achieved some important successes during
 the period.  We made significant reductions in our operating expenses that
 will better position us going forward.  At the same time, we met our revenue
 target as we continued to generate strong demand for retail audio products.
 We substantially reduced our inventory level, achieving our target of net
 inventory of $200 million at the end of the quarter.  And, excluding the
 effect of the restructuring charges on cost of goods sold, we met our margin
 guidance of 27%."
     "During the quarter, we sustained, for the first time, a net loss from our
 investment portfolio," said Creative Chairman and CEO Sim Wong Hoo.  "The
 $75 million write-down from our investment portfolio should be taken in the
 perspective that we posted realized gains of $103.4 million in fiscal year
 2000, including $70.6 million for the same quarter last year.  Many of our
 investee companies were hit hard by the downturn in the private and public
 equity markets, causing us to write-down our holdings.  However, we do believe
 that a number of our investee companies continue to show promise, both
 strategically and financially."
     "At the same time, we took serious actions to better position Creative in
 a tough marketplace," continued Sim.  "These actions, including measures to
 reduce the cost of our products and aggressive pricing on the NOMAD Jukebox,
 position us to increase market share and solidify our leadership position in
 the strategic digital audio player market.  The digital audio player market
 represents huge potential; and, with our lower cost structure, we plan to
 drive this market and capitalize on it."
     During the quarter, Creative continued its share buy-back program,
 repurchasing approximately 892,000 shares at a cost of $8.6 million.  Subject
 to market price and conditions, and securities law restrictions, the Company
 plans to continue its buyback program.
 
     Recent Announcements
 
     -- Creative shipped the Sound Blaster(R) Live!(TM) for Macintosh(R),
 providing Power Mac(TM) G3 and G4 users the quality of digital surround sound.
     -- Creative shipped the 6GB NOMAD(R) Jukebox C-Series portable digital
 audio player at a compelling $269 Internet price point, along with the 32MB
 NOMAD II C-Series portable digital audio player for $129.
 
     Awards & Accolades
 
     -- Sound Blaster Live! Platinum 5.1 earned the "Stamp of Approval" from
 Computer Games Magazine and the "Editor's Choice" from PC Gamer.  Sound
 Blaster Live! X-Gamer 5.1 and MP3+ 5.1 won "Editor's Choice" awards from PC
 Gamer.
     -- The NOMAD II MG won the "Kick Ass Award" from Maximum PC.
     -- Cambridge SoundWorks(R) Desktop Theater(TM) 5.1 DTT3500 Digital
 speakers garnered the "Editor's Choice" from Computer Gaming World, and the
 "Stamp of Approval" from Computer Games Magazine.  Cambridge SoundWorks(R)
 FourPointSurround(TM) FPS2000 Digital speakers also won the "Editor's Choice"
 Award from Computer Gaming World.
 
             Listen to Creative's Q3 FY01 Analyst Conference Call:
 
     Link to Q3 earnings conference call live on April 26th at 4:00 p.m. PDT
 via Creative's Investor Relations Web site: http:/www.creative.com/investor .
 Replay available from shortly after the end of the conference call until
 5/3/01 via link from the IR web site or by calling 800-633-8284, reservation
 # 18596093.
     Creative is the worldwide leader in digital entertainment products for the
 personal computer and the Internet.  Famous for its Sound Blaster(R) and for
 launching the multimedia revolution, Creative is now driving digital
 entertainment on the PC platform with products like its highly acclaimed
 NOMAD(R) Jukebox.  Creative's innovative hardware, proprietary technology,
 applications and services leverage the Internet, enabling consumers to
 experience high-quality digital entertainment -- anytime, anywhere.
     This announcement refers to products and pricing sold in the United States
 of America.  Pricing and product availability is subject to change.
     Sound Blaster and the Creative logo are registered trademarks and Live! is
 a trademark of Creative Technology Ltd. in the United States and/or other
 countries.  Cambridge SoundWorks is a registered trademark of Cambridge
 SoundWorks, Inc. in the United States and/or other countries.  NOMAD is a
 registered trademark of Aonix and is used by Creative Technology Ltd. and/or
 its affiliates under license.  All other brand and product names are either
 trademarks or registered trademarks of their respective holder and are hereby
 recognized as such.
 
     Safe Harbor for Forward-Looking Statements Under The Private Securities
      Litigation Reform Act of 1995:
     Except for the historical information contained in this press release and
 on the corresponding conference call, the matters set forth in this press
 release (including all references to future financial performance, products
 and marketing efforts) and the call are forward-looking statements within the
 meaning of the "safe harbor" provisions of The Private Securities Litigation
 Reform Act of 1995. Readers of this press release and listeners to the call
 are cautioned not to place undue emphasis or reliance on these forward-looking
 statements which reflect management's analysis, judgement, belief or
 expectation only as of the date of this press release.  These forward-looking
 statements are subject to certain assumptions, risks and uncertainties that
 could cause actual results to differ materially from those set forth or
 implied in the forward looking statements.  Such assumptions, risks and
 uncertainties include, among others:  the cost-cutting measures Creative plans
 to take will be insufficient; reduction or cancellation of sales orders for
 Creative products or other unexpected or unplanned events that could cause
 Creative to miss its revenue guidance or negatively impact its margins; the
 timely development, ramp, shipment, delivery, and market acceptance of new
 products, including Creative's next generation audio, personal digital
 entertainment appliances, including the WebCam line of products and
 specifically, the NOMAD and NOMAD Jukebox line of products, CD-ROM, CD-RW and
 DVD drives, and communications products; the increasing proliferation of sound
 functionality in new products from new and existing competitors and at the
 application software, chip and operating system levels; reductions in the
 market value of products sold by Creative, including increases in inventory or
 declines in demand or prices for storage devices, digital entertainment
 appliances, board and chip-level products, software, speakers, and other
 products; reductions in revenues and gross margins due to numerous factors,
 including declines in average selling prices of Creative's products, failure
 to reduce costs, divestments of low margin businesses, and increased
 inventories and pricing pressure from competitors; the short product cycles
 that characterize most of Creative's products; fluctuations in the value and
 liquidity of Creative's investee companies, including any losses that may
 result from the recent trend of increased volatility for technology stocks and
 potential price reductions of carrying values of our investee companies;
 potential fluctuations in quarterly results due to the seasonality of
 Creative's business and the difficulty of projecting such fluctuations; the
 vulnerability of certain markets to current and future currency fluctuations,
 including the exchange rate of the Euro; labor shortages or work stoppages;
 credit shortages; effects of restricted fuel availability and rising costs of
 fuel; Creative's reliance on sole sources for many of its chips and other key
 components; component shortages which may impact Creative's ability to meet
 customer demand; Creative's ability to protect its proprietary rights; the
 timing or completion of a subsidiary IPO and/or the valuation that would apply
 in the event of a consummation of a subsidiary IPO; the volatility of share
 prices for companies in Creative's industry and the effect of those prices or
 other events beyond Creative's control, including adverse changes in general
 economic conditions; and other risk factors described in Creative's filings
 with the Securities and Exchange Commission over the past twelve months,
 including without limitation, Creative's Annual Report on Form 20-F and the
 Form 6-K dated January 19, 2001.  Creative urges you to consider all such
 factors.  Creative undertakes no obligation to publicly release the results of
 any revisions to such forward-looking statements which may be made to reflect
 events or circumstances after the date hereof or to reflect the occurrence of
 unanticipated events.
 
                              CREATIVE TECHNOLOGY LTD.
                            CONSOLIDATED BALANCE SHEETS
                                    (In US$'000)
 
                                                            (Unaudited)
                                                     March 31,        June 30,
                                                      2001             2000
     ASSETS
 
     Current Assets:
       Cash and cash equivalents                     $144,140       $285,757
       Marketable securities                            2,514         21,156
       Accounts receivable, net                        96,513         98,923
       Inventory                                      193,409        230,616
       Other assets and prepaids                       19,572         34,942
        Total current assets                          456,148        671,394
 
     Property and equipment, net                      103,213         96,751
     Investments                                      179,136        395,888
     Other non-current assets                           7,243         12,426
 
                                                     $745,740     $1,176,459
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
 
     Current Liabilities:
       Accounts payable                               $67,879       $183,299
       Accrued liabilities                             84,326        103,756
       Income taxes payable                            45,671         48,350
       Other current liabilities                        3,722          4,575
        Total current liabilities                     201,598        339,980
 
      Long term obligations                            26,640         27,051
 
      Minority interest in subsidiaries                30,759         30,790
 
     Total shareholders' equity                       486,743        778,638
 
                                                     $745,740     $1,176,459
 
                           CREATIVE TECHNOLOGY LTD.
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                     (In US$'000, except per share data)
                                 (Unaudited)
 
                                   Three months ended     Nine months ended
                                        March 31,             March 31,
                                    2001       2000        2001         2000
 
     Sales, net                   $263,030   $330,022   $994,424  $1,035,889
 
     Cost of goods sold            199,205    228,444    723,608     734,418
 
 
     Gross profit                   63,825    101,578    270,816     301,471
 
     Operating expenses:
 
      Selling, general and
       administrative               55,685     64,167    183,851     194,009
 
      Research and development      11,380     16,538     41,591      43,968
 
      Restructuring and other
       charges                      23,231         --     23,231          --
 
 
 
     Total operating expenses       90,296     80,705    248,673     237,977
 
     Operating income             (26,471)     20,873     22,143      63,494
 
     Gain (loss) from
      investments, net            (75,360)     70,632   (72,502)      84,232
 
     Interest income and
      other, net                     1,090      (542)      2,233       4,232
 
 
     Income before income taxes
      and minority interest      (100,741)     90,963   (48,126)     151,958
 
     Provision for income
      taxes                           --     (2,327)     (8,409)     (7,468)
 
     Minority interest in
      (Income)                      (289)      (317)      (398)        (881)
 
 
     Net income                $(101,030)   $ 88,319  $(56,933)     $143,609
 
     Basic earnings
      per share:                  $(1.27)      $1.09    $(0.72)        $1.75
 
     Weighted average
      ordinary shares
      outstanding ('000)           79,299     81,339     79,370       82,249
 
     Diluted earnings per
      share:                      $(1.27)      $1.01    $(0.72)        $1.66
 
     Weighted average
      ordinary shares**            79,299     87,697     79,370       86,281
      and equivalents
      outstanding ('000)
 
    ** In computing the diluted earnings per share for the current quarter and
 mulative year to date, 1.402 million and 2.641 million of potentially
 lutive shares were not included since the company was in net loss position.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X23656392
 
 

SOURCE Creative Technology Ltd.
    SINGAPORE, April 26 /PRNewswire/ --
 Creative Technology Ltd. (Nasdaq:   CREAF), the worldwide leader in digital
 entertainment products for the personal computer and the Internet, today
 announced financial results for the third quarter of fiscal year 2001, ended
 March 31, 2001.  All financial results are stated in U.S. dollars.
     Sales for the third quarter were in line with the Company's expectations
 at $263 million.  This compares to sales of $330 million for the same quarter
 of last year.
     The Company reported a net loss for the quarter of $101.0 million or
 $1.27 per share.  This includes one-time charges of $31.0 million and a
 write-down of investments of $75.4 million, which accounted for a combined
 $106.4 million or $1.34 per share.  Excluding these charges, the Company would
 have reported net income for the quarter of $4.6 million or $0.06 per share.
 Comparative results for the third quarter last year were net income of
 $88.3 million and earnings per share of $1.01.  This included net investment
 gains of $70.6 million or $0.80 per share.
     The third quarter one-time charges include a previously announced
 restructuring charge totaling $19.8 million, which comprises $7.8 million
 applied to cost of goods sold and $12 million of operating expense charges.
 Also included in operating expenses is a one-time charge of $11.2 million
 resulting from the write-off of the remaining value of the assets previously
 acquired from Aureal Semiconductor. The Company also took a $75.4 million
 write-down against its investment portfolio.  This includes a previously
 announced $65 million write-down of privately held technology companies,
 consistent with the Company's prior announcement; and a net unrealized loss of
 $10.4 million on quoted investments, reflecting the further worsening of
 public equity markets at the end of the quarter.
     Sales for the first nine months of fiscal year 2001 were $994.4 million,
 compared to $1.036 billion for same period in the previous year.  Net loss for
 the first nine months of fiscal year 2001 was $56.9 million, or $0.72 per
 share, including the previously noted one-time charges and write-down of
 investments totaling $106.4 million in the quarter, and net investment gains
 of $2.9 million from the previous two quarters.  This compares to net income
 for the first nine months of the previous year of $143.6 million or $1.66 per
 share, including net investment gains of $84.2 million.
      "Between the difficulty of the economic climate and the restructuring of
 our businesses, this was a challenging quarter," said Craig McHugh, president
 of Creative Labs, Inc.  "However, we achieved some important successes during
 the period.  We made significant reductions in our operating expenses that
 will better position us going forward.  At the same time, we met our revenue
 target as we continued to generate strong demand for retail audio products.
 We substantially reduced our inventory level, achieving our target of net
 inventory of $200 million at the end of the quarter.  And, excluding the
 effect of the restructuring charges on cost of goods sold, we met our margin
 guidance of 27%."
     "During the quarter, we sustained, for the first time, a net loss from our
 investment portfolio," said Creative Chairman and CEO Sim Wong Hoo.  "The
 $75 million write-down from our investment portfolio should be taken in the
 perspective that we posted realized gains of $103.4 million in fiscal year
 2000, including $70.6 million for the same quarter last year.  Many of our
 investee companies were hit hard by the downturn in the private and public
 equity markets, causing us to write-down our holdings.  However, we do believe
 that a number of our investee companies continue to show promise, both
 strategically and financially."
     "At the same time, we took serious actions to better position Creative in
 a tough marketplace," continued Sim.  "These actions, including measures to
 reduce the cost of our products and aggressive pricing on the NOMAD Jukebox,
 position us to increase market share and solidify our leadership position in
 the strategic digital audio player market.  The digital audio player market
 represents huge potential; and, with our lower cost structure, we plan to
 drive this market and capitalize on it."
     During the quarter, Creative continued its share buy-back program,
 repurchasing approximately 892,000 shares at a cost of $8.6 million.  Subject
 to market price and conditions, and securities law restrictions, the Company
 plans to continue its buyback program.
 
     Recent Announcements
 
     -- Creative shipped the Sound Blaster(R) Live!(TM) for Macintosh(R),
 providing Power Mac(TM) G3 and G4 users the quality of digital surround sound.
     -- Creative shipped the 6GB NOMAD(R) Jukebox C-Series portable digital
 audio player at a compelling $269 Internet price point, along with the 32MB
 NOMAD II C-Series portable digital audio player for $129.
 
     Awards & Accolades
 
     -- Sound Blaster Live! Platinum 5.1 earned the "Stamp of Approval" from
 Computer Games Magazine and the "Editor's Choice" from PC Gamer.  Sound
 Blaster Live! X-Gamer 5.1 and MP3+ 5.1 won "Editor's Choice" awards from PC
 Gamer.
     -- The NOMAD II MG won the "Kick Ass Award" from Maximum PC.
     -- Cambridge SoundWorks(R) Desktop Theater(TM) 5.1 DTT3500 Digital
 speakers garnered the "Editor's Choice" from Computer Gaming World, and the
 "Stamp of Approval" from Computer Games Magazine.  Cambridge SoundWorks(R)
 FourPointSurround(TM) FPS2000 Digital speakers also won the "Editor's Choice"
 Award from Computer Gaming World.
 
             Listen to Creative's Q3 FY01 Analyst Conference Call:
 
     Link to Q3 earnings conference call live on April 26th at 4:00 p.m. PDT
 via Creative's Investor Relations Web site: http:/www.creative.com/investor .
 Replay available from shortly after the end of the conference call until
 5/3/01 via link from the IR web site or by calling 800-633-8284, reservation
 # 18596093.
     Creative is the worldwide leader in digital entertainment products for the
 personal computer and the Internet.  Famous for its Sound Blaster(R) and for
 launching the multimedia revolution, Creative is now driving digital
 entertainment on the PC platform with products like its highly acclaimed
 NOMAD(R) Jukebox.  Creative's innovative hardware, proprietary technology,
 applications and services leverage the Internet, enabling consumers to
 experience high-quality digital entertainment -- anytime, anywhere.
     This announcement refers to products and pricing sold in the United States
 of America.  Pricing and product availability is subject to change.
     Sound Blaster and the Creative logo are registered trademarks and Live! is
 a trademark of Creative Technology Ltd. in the United States and/or other
 countries.  Cambridge SoundWorks is a registered trademark of Cambridge
 SoundWorks, Inc. in the United States and/or other countries.  NOMAD is a
 registered trademark of Aonix and is used by Creative Technology Ltd. and/or
 its affiliates under license.  All other brand and product names are either
 trademarks or registered trademarks of their respective holder and are hereby
 recognized as such.
 
     Safe Harbor for Forward-Looking Statements Under The Private Securities
      Litigation Reform Act of 1995:
     Except for the historical information contained in this press release and
 on the corresponding conference call, the matters set forth in this press
 release (including all references to future financial performance, products
 and marketing efforts) and the call are forward-looking statements within the
 meaning of the "safe harbor" provisions of The Private Securities Litigation
 Reform Act of 1995. Readers of this press release and listeners to the call
 are cautioned not to place undue emphasis or reliance on these forward-looking
 statements which reflect management's analysis, judgement, belief or
 expectation only as of the date of this press release.  These forward-looking
 statements are subject to certain assumptions, risks and uncertainties that
 could cause actual results to differ materially from those set forth or
 implied in the forward looking statements.  Such assumptions, risks and
 uncertainties include, among others:  the cost-cutting measures Creative plans
 to take will be insufficient; reduction or cancellation of sales orders for
 Creative products or other unexpected or unplanned events that could cause
 Creative to miss its revenue guidance or negatively impact its margins; the
 timely development, ramp, shipment, delivery, and market acceptance of new
 products, including Creative's next generation audio, personal digital
 entertainment appliances, including the WebCam line of products and
 specifically, the NOMAD and NOMAD Jukebox line of products, CD-ROM, CD-RW and
 DVD drives, and communications products; the increasing proliferation of sound
 functionality in new products from new and existing competitors and at the
 application software, chip and operating system levels; reductions in the
 market value of products sold by Creative, including increases in inventory or
 declines in demand or prices for storage devices, digital entertainment
 appliances, board and chip-level products, software, speakers, and other
 products; reductions in revenues and gross margins due to numerous factors,
 including declines in average selling prices of Creative's products, failure
 to reduce costs, divestments of low margin businesses, and increased
 inventories and pricing pressure from competitors; the short product cycles
 that characterize most of Creative's products; fluctuations in the value and
 liquidity of Creative's investee companies, including any losses that may
 result from the recent trend of increased volatility for technology stocks and
 potential price reductions of carrying values of our investee companies;
 potential fluctuations in quarterly results due to the seasonality of
 Creative's business and the difficulty of projecting such fluctuations; the
 vulnerability of certain markets to current and future currency fluctuations,
 including the exchange rate of the Euro; labor shortages or work stoppages;
 credit shortages; effects of restricted fuel availability and rising costs of
 fuel; Creative's reliance on sole sources for many of its chips and other key
 components; component shortages which may impact Creative's ability to meet
 customer demand; Creative's ability to protect its proprietary rights; the
 timing or completion of a subsidiary IPO and/or the valuation that would apply
 in the event of a consummation of a subsidiary IPO; the volatility of share
 prices for companies in Creative's industry and the effect of those prices or
 other events beyond Creative's control, including adverse changes in general
 economic conditions; and other risk factors described in Creative's filings
 with the Securities and Exchange Commission over the past twelve months,
 including without limitation, Creative's Annual Report on Form 20-F and the
 Form 6-K dated January 19, 2001.  Creative urges you to consider all such
 factors.  Creative undertakes no obligation to publicly release the results of
 any revisions to such forward-looking statements which may be made to reflect
 events or circumstances after the date hereof or to reflect the occurrence of
 unanticipated events.
 
                              CREATIVE TECHNOLOGY LTD.
                            CONSOLIDATED BALANCE SHEETS
                                    (In US$'000)
 
                                                            (Unaudited)
                                                     March 31,        June 30,
                                                      2001             2000
     ASSETS
 
     Current Assets:
       Cash and cash equivalents                     $144,140       $285,757
       Marketable securities                            2,514         21,156
       Accounts receivable, net                        96,513         98,923
       Inventory                                      193,409        230,616
       Other assets and prepaids                       19,572         34,942
        Total current assets                          456,148        671,394
 
     Property and equipment, net                      103,213         96,751
     Investments                                      179,136        395,888
     Other non-current assets                           7,243         12,426
 
                                                     $745,740     $1,176,459
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
 
     Current Liabilities:
       Accounts payable                               $67,879       $183,299
       Accrued liabilities                             84,326        103,756
       Income taxes payable                            45,671         48,350
       Other current liabilities                        3,722          4,575
        Total current liabilities                     201,598        339,980
 
      Long term obligations                            26,640         27,051
 
      Minority interest in subsidiaries                30,759         30,790
 
     Total shareholders' equity                       486,743        778,638
 
                                                     $745,740     $1,176,459
 
                           CREATIVE TECHNOLOGY LTD.
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                     (In US$'000, except per share data)
                                 (Unaudited)
 
                                   Three months ended     Nine months ended
                                        March 31,             March 31,
                                    2001       2000        2001         2000
 
     Sales, net                   $263,030   $330,022   $994,424  $1,035,889
 
     Cost of goods sold            199,205    228,444    723,608     734,418
 
 
     Gross profit                   63,825    101,578    270,816     301,471
 
     Operating expenses:
 
      Selling, general and
       administrative               55,685     64,167    183,851     194,009
 
      Research and development      11,380     16,538     41,591      43,968
 
      Restructuring and other
       charges                      23,231         --     23,231          --
 
 
 
     Total operating expenses       90,296     80,705    248,673     237,977
 
     Operating income             (26,471)     20,873     22,143      63,494
 
     Gain (loss) from
      investments, net            (75,360)     70,632   (72,502)      84,232
 
     Interest income and
      other, net                     1,090      (542)      2,233       4,232
 
 
     Income before income taxes
      and minority interest      (100,741)     90,963   (48,126)     151,958
 
     Provision for income
      taxes                           --     (2,327)     (8,409)     (7,468)
 
     Minority interest in
      (Income)                      (289)      (317)      (398)        (881)
 
 
     Net income                $(101,030)   $ 88,319  $(56,933)     $143,609
 
     Basic earnings
      per share:                  $(1.27)      $1.09    $(0.72)        $1.75
 
     Weighted average
      ordinary shares
      outstanding ('000)           79,299     81,339     79,370       82,249
 
     Diluted earnings per
      share:                      $(1.27)      $1.01    $(0.72)        $1.66
 
     Weighted average
      ordinary shares**            79,299     87,697     79,370       86,281
      and equivalents
      outstanding ('000)
 
    ** In computing the diluted earnings per share for the current quarter and
 mulative year to date, 1.402 million and 2.641 million of potentially
 lutive shares were not included since the company was in net loss position.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X23656392
 
 SOURCE  Creative Technology Ltd.