Creative Posts $48 million Q4 Loss, Cites 3Dlabs Acquisition

The company cited write-downs of technology investments and a one-time charge of $26 million related to the acquisition of graphics company 3Dlabs as contributors to the results. The results are nonetheless an improvement on the company’s $73.4 million (94 cents per share) loss in the same period a year ago, but are still a steep drop from third-quarter profits of $15.1 million. Revenue for the fourth quarter was $182.6 million, down from $233.3 for the same period last year. 3Dlabs contributed revenue of $6.8 million for the period from May 15, on operating expenses of $6.1 million. Creative plans to leverage 3Dlabs' high-end graphics technology portfolio to release mass-market products in the current financial year, in hopes of replicating their success in the soundcard business with products like SoundBlaster.