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Results for the third quarter of fiscal 1999 were:
Results for the first nine months of fiscal 1999 were:
Please note that the comparative results for the first nine months of fiscal 1998 include a gain of US$18.5 million from the sale of quoted investments in the first quarter of fiscal 1998 and a one-time write-off totaling US$60.3 million for in-process technology related to acquisitions in the second quarter of fiscal 1998.
During the quarter, Creative continued its stock buy-back program, repurchasing approximately 4.3 million shares at a cost of US$52.9 million. Because the buyback was ongoing during the quarter, the shares repurchased did not fully impact the number of shares used in earnings per share calculations. Since the inception of Creative's share buy-back program in late November, 1998, the company has repurchased approximately 7.8 million shares at a total cost of US$110.4 million.
Also during the quarter, Creative paid previously announced dividends of US$0.50 per share for a total of US$45.0 million.
"Although we did not meet earnings expectations for the third quarter, we achieved several critical goals that I had set for the company," said Sim Wong Hoo, chairman and chief executive officer of Creative Technology Ltd. "We reported our second consecutive quarter of increased year-over-year revenues, and we further improved our market share position. In U.S. Retail, our speakers moved to #1, and we now hold either the #1 or #2 position in all five of our product categories. Additionally, four major OEMs - Compaq, Dell, Gateway, and Micron - will be shipping Sound Blaster Live! in the current quarter. These achievements create an even stronger foundation for us to move into new markets, such as the recently-announced Nomad MP3 digital audio player, which created great market excitement at the Internet World show and positions Creative as a leader in the explosive internet audio market."
Environmental Audio Garners Top Industry Support
Creative's Environmental Audio technology continues to garner
support from key game developers. Over 45 titles are now available
with support for the Sound Blaster Live! line and Environmental
Audio technology - with an increasing number of titles in development.
For a complete list of titles please visit
http://eax.creative.com/gaming/
Safe Harbor Statement Under the Private Securities Litigation
Reform Act of 1995
Except for the historical information contained herein or in the
accompanying conference call, the statements herein and in the
call (including information on future products, future marketing
efforts, and future revenues, margins, expenses and earnings)
are forward looking statements that are subject to certain risks
and uncertainties that could cause actual results to differ materially
from those set forth in the forward looking statements. Such
statements are subject to the attached cautionary statements which
are provided pursuant to The Private Securities Litigation Reform
Act of 1995.
Creative Technology Ltd. develops, manufactures and markets a
wide array of advanced multimedia solutions for the PC, entertainment,
education, music and productivity tools markets. Creative's products
are marketed through the OEM, systems integrator and retail channels
under a variety of trademarks, including the "Blaster"
family name. With the new Sound Blaster PCI
standard, Creative has produced a solution that utilizes a combination
of hardware and software for near-perfect compatibility with existing
DOS and Windows titles. Creative's corporate headquarters and
primary manufacturing are based in Singapore, with sales, distribution
and research and development being carried out through an extensive,
global network of subsidiaries located in North America, Europe,
Asia and Africa.
Sound Blaster and Blaster are registered trademarks and PC-DVD
Encore, DeskTop Theater, 3D Blaster and Graphics Blaster are trademarks
of Creative Technology Ltd. Cambridge SoundWorks is a registered
trademark of Cambridge SoundWorks, Inc. All other products mentioned
herein are trademarks of their respective owners and are hereby
recognized as such.
Safe Harbor for Forward Looking Statements:
Except for the historical information contained herein and in
the accompanying conference call on today's date, the matters
set forth herein and in the accompanying conference call (including
our guidance on future revenues, margins, expenses and earnings)
are forward looking statements that are subject to certain risks
and uncertainties that could cause actual results to differ materially
from those set forth in the forward looking statements. Such
risks and uncertainties include, among others: potential fluctuations
in quarterly results due to the seasonality of Creative's business
and the difficulty of projecting such fluctuations; reductions
in the market value of products sold by Creative, including increases
in supply or declines in demand or prices for CD-ROM or DVD drives,
board and chip-level products, and software products; the short
product cycles that characterize most of Creative's products;
the increasing proliferation of sound functionality at the chip
and operating system levels; Creative's reliance on sole sources
for many of its chips and other key components; the timely ramp,
delivery and market acceptance of new products, including Creative's
next generation audio, graphics accelerator, CD-ROM and DVD drives
and communications products; the volatility of share prices for
companies in Creative's industry and the effect of those prices
or other events beyond Creative's control; and other risk factors
described in Creative's filings with the Securities and Exchange
Commission over the past twelve months.