Creative's Q2 Results Exceed Expectations

Last Fall the company had forecasted revenue of $225-$240 million for the quarter, and therefore these results exceeded most expectations. However, sales were far off of last year's revenues of $427 million. Creative said the year-over-year decline was a result of its "de-emphasis of certain product categories and the difficult economic climate." Net income for the second quarter was $26.3 million (36 cents per share) compared to $26.5 million (33 cents per share) for the same quarter last year. Analysts polled by Reuters had expected net income in the range of $13.0-$21.5 million, so the company fared better than most expected.