Creative Technology has reported a net loss of US$18.93 million (S$23.57 million) for Q4 of its fiscal year ending June.

The firm suffered a US$19.74 million net loss in the previous quarter, and the latest results puts its net loss for the entire year at US$83.96 million, which is a 77.8 per cent increase from US$47.23 million the year before.

Loss before taxes was US$83.58 million.

For Creative, this means a third consecutive year in pre-tax losses.

Singapore Exchange regulations state that a mainboard company could be put on watch-list if pre-tax losses are suffered for three consecutive years and its average market cap for the last 120 market days falls below S$40 million.

Creative reported a market cap of S$237.1 million on August 8.

Sales for all market regions have fallen in the year, with net sales falling 17 per cent to US$191.78 million from the year before.

The group reported a drop in sales of 13 per cent in the Asia Pacific market, and 26 per cent and 18 per cent in America and Europe.

Currently embroiled in a lawsuit with a vendor over a wireless broadband network project, Creative does not expect an improvement to be registered at the end of the current quarter and is expecting to report an operating loss.

ljessica@sph.com.sg