It says US tariffs and global trade tensions weakened consumer sentiment, which dragged on revenue
[SINGAPORE] Creative Technology said that revenue for its second half of the financial year ended Jun 30 is likely to be US$30 million, which is below its target.
In a bourse filing on Friday (Jul 11), the company said that its revenue was “negatively impacted by the uncertain macroeconomic conditions and weakening consumer sentiments resulting from the US trade tariffs and global trade tensions. These factors have adversely affected the business environment in many markets for the group’s products”.
It added that it expects to report a similar level of operating loss as that in the first half.
At the same time, the home-grown electronics company said that it is ramping up initiatives to boost revenue growth while optimising resources.
It will announce details of the financial results for the full year ended Jun 30 in August.
The profit guidance comes less than two weeks after the company said that its chief executive officer Freddy Sim will step down from his role on Jul 11 for health reasons, shortly after taking on the top job in May.
The board will look for a new CEO, Creative said in a bourse filing on Jun 30.
Creative’s shares rose S$0.005, or 0.6 per cent to close at S$0.83 before the profit guidance.
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