[ image disabled ] Fourth Quarter Financial Results Creative has just released their financial results for the fourth quarter of the 2007 fiscal year. Like most previous quarters, they didn't come out on the positive side. They've reported a net loss of $19.3 million. Due mainly to the $100 million settlement with Apple, Creative reported a net income of $28.2 million for the fiscal year. SINGAPORE – Aug. 8, 2007– Creative Technology Ltd., a worldwide leader in digital entertainment products, today announced financial results for the fourth quarter of fiscal year 2007 and the full 2007 fiscal year, ended June 30, 2007. All financial results are stated in U.S. dollars. Net loss for the fourth quarter was $19.3 million, Net income for the 2007 fiscal year was $28.2 million, with earnings per share of $0.34, including a $100 million paid-up license from Apple for its use of the ZEN Patent in its products. This compares to a net loss of $118.2 million with a loss per share of $1.42 for the previous fiscal year. read the full report HERE Q4 Conference Call Summary I just finished listening to Creative's conference call, and here's a quick summary of the highlights:
My Thoughts:: A lot was said during this call, but the biggest thing that stuck out at me was the continued decreases in the US market. This is a crucial area for Creative, and they seem to be losing a little bit of ground here every quarter. Their success in Europe is great, but Microsoft will eventually be bringing the Zune to that region, and that can't be good for Creative. I'm pleased to see them moving away from HD players and focusing on flash. They've just released the first mainstream 16GB player and at a great price. An obvious sign of their ability to compete with Apple, Sandisk and others. With rumors of a Zen Vision:M replacement coming soon, you have to wonder if Creative will follow what they're preaching and release it as a flash player. I know many of you out there would love to have a thinner ZVM with 16GB's or higher inside. Apple is rumored to be doing the same. Let's just hope Creative beats them to the market.
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| Im_Numba_1
Aug 07 (2007) 09:43PM ![]() | dam that suck for the share holder, but creative has to advertise to the American public if they want some dam business |
| Ashra
Aug 07 (2007) 09:58PM | seriously. its like they actually dont understand why they cant sell in amerca, but if they would just pull their head out of their you know whats and start putting up some commercials (like the ones that are right on their players!!) they would probably beat out Apple and Microsoft over night. |
| kickenchicken
Aug 07 (2007) 10:09PM | blah, i've kind of lost hope of seeing an X-Fi dap ![]() |
| Im_Numba_1
Aug 07 (2007) 10:09PM ![]() | they just need to invest a little money towards advertising and they would at least a dollar a share |
| Raider Red
Aug 07 (2007) 10:34PM | but last qtr the loss was at something like 24mil, so 19's a tad better... |
| Illmatic016
Aug 07 (2007) 11:04PM | at the focus on flash players...I don't have a problem with flash, but I refuse to buy a flash player until they become 30+ GB. (which may be within the next couple years actually). 16 GB just isn't enough for me. |
| ashxcore
Aug 08 (2007) 01:09AM | You know, I think I'm going to make some flyers for Creative and put them up. lol |
| mdscriber3
Aug 08 (2007) 02:01AM | I'm wondering if because of this news if now is the time to purchase a 60GB Zen Vision M, seeing as Creative wants to focus now on flash players? My 30GB ZVM is almost full with less than 1GB left. |
| kickenchicken
Aug 08 (2007) 02:29AM | what Illmatic and Pam said. 16gb would not be sufficient for me, i only have 3 gigs left on my 30gig zen. But, maybe there getting the picture, people here in the US usually go for the things that were on Tv (iPod, Zune) than for things that are in most electronic stores, but NO advertising whatsover. if i hadnt discovered the Zen Line by Creative, id be listening to an iPod right now. i mean, even PAYING bestbuy, Circuit City, Walmart to advertise for them in store (like the big signs MS payed walmart to display when the Zune because available. ) |
| moorey
Aug 08 (2007) 02:37AM | but are your players actually full of music or videos? in the past flash player have mostly only worked with audio and therefore high capacities weren't an issue for MOST people. though i do agree that for some people (read: audiophiles) even 60gb isn't enough |
| Varuna
Aug 08 (2007) 03:04AM | WELL.. it is a little better actually.. But Not GOOD enough.. They launched 2 new players (stone and Stone Plus) since the previous results and its just a little difference ! I Personally DONT like the the Apple and Creative Deal. Neither Do I like Apple selling Creative technologies and Creative allowing other companies integrating them ! X-Fi should be something solely to Creative so that They can maximize all the potential it has (player wise and in other devices), and maybe after that let other companies participate. [You know Apple is really clever ] And.... THE ZEN V PLUS IS NOT A PLAYER TO CARRY YOUR WHOLE MUSIC LIBRARY WITH YOU ! I BET YOU PEOPLE Dont Even listen to Half (or even 1/4ths ) of your music ! Thats cause it's meant to be like that !! If I clean up my ZVM with the files i really would listen to some day.. and the ones I can go on without listening.. 16 GB would be more ! Plus most of the space would be with High Res pics and Videos..... |
| Varuna
Aug 08 (2007) 03:08AM | Creative should just Advertise.. Advertise.. and Advertise.. ! Tell me guys, How many people apart from us Zennists (and a couple of others) know that a 16 GB player has been announced and its of great value for the features and the built quality you get.. .??? In Tech Blogs, Rumors have made big big pages under Apple's maybe new 16 GB player.. Anyways... I agree with ashxcore.. WE should do sumthing ![]() |
| makaveli
Aug 08 (2007) 06:10AM | i agree with everyone that they need to advertise....i wish they would advertise more. their players overall are great, the zen vision m being in my opinion one of the best ever produced in the audio player marker, but hardly much advertising went on. it really frustrates me when they dont seem to try and push sales by some sort of major marketing campaign. |
| tmc
Aug 08 (2007) 07:48AM | Creative is abandoning a core market in HD based players. Many of whom live at this website are ZVM owners. There has to be a reason why Apple can sell a two codec hit at almost twice the price and Creative can't sell a similar form factor multi-codec PMP (ZVM) at nearly half the price and still make money. This is a failure of "execution" of a business plan. Granted, the US economy is in a bit of a slump, but the problem is consumers are relatively uneducated SHEEP. Why have they been buying products that cost more, of inferior quality, and do less for them than others? If creative can't figure that out then many of us will be looking to other makers for our next players (no, not apple). Let me know when they get up to 80gb flash players! Because 60gb isn't even enough anymore. Flash is just not keeping up with mini HD.. mini HD density will push 200gb (while 3.5" desktops push past 1tb). Flash will be stuck at the sub 100gb mark for nearly 5 years, plenty of breathing room left in mini-HD technology. Creative needs to give customers a REASON to choose their brand again! Most consumers remember them as the sound card maker whom allowed themselves to slip into obsolescence. If Apple can rise like the Phoenix to cult status, what is Creative waiting for? A buyout by a deep pocketed white knight? Intel? Samsung? another flash memory maker? Many companies have their own problems right now so this isn't likely. |
| master
Aug 08 (2007) 08:09AM ![]() | For those who are interested in the Conference Call, the link of the transcript is HERE . And, 30GB+ for Flash based is possible, the only problem is price. There will be X-Fi DAP in the pipeline. [ edited Aug 08 (2007) 08:10AM ] |
| barrycuda
Aug 08 (2007) 08:13AM | i remember this last year and i suggested that someone make a petition to send to creative with signatures from all epizenter members who strongly URGE creative to advertise in the U.S. and nobody here liked my idea and said it wouldent make any difference, it wouldent work, etc.. but now people are still saying the same thing over and overand over and creative doesnt have a clue why the U.S. sales are down. duh! i think they need to see the supporters they do have in the U.S. to help push them to make commercials, ads, etc.. i bet if they ran that panda ad on U.S. tv, they would see an increase in sales almost immediately! it's such a different commercial that really would stand out on U.S. tv. it's so weird and different, it makes the "hip" ipod commercials look very boring. |
| Dominic
Aug 08 (2007) 08:26AM | See the thing about all you people screaming for advertising is that WoM is much much much more powerful. Creative does NO advertising in Europe, period, yet they are well known and well respected, this is because word has gotten around that Creative make great DAP's and have a great Customer Care service. Obviously cultural differences play a major here and so I can understand all these cries for advertising. It seems the average American is more effected by what they see on the TV, hence the Paris Hilton phenomenon, than what they hear from their peers, or on the other spectrum, they listen to their peers but their peers just go by what they see on TV. One thing is for sure, most of the best TV comes from America and since Americans are so influenced by it perhaps Creative should advertise on that medium, but TV advertising is very expensive and from Creatives POV, why through more money down the drain? If Creatives American sales do not pick up I can see them officially leaving the region, of course you'd be able to buy their products on line, they just would not be supported. Sad times ahead unless something happens. |
| davinp
Aug 08 (2007) 08:42AM | Creative needs to do more adversting in the US. Advertise in newspapers and magazines. I'm constantly seeing TV advertisements for the iPod Some ideas: - Why their player is better than the iPod - do a marketing blitz - trade in your iPod for a Zen America is so obsessed with the iPod, that they don't give Creative a chance. Because of poor sales, companies don't make accessories for the Zen, just the iPod. [ edited Aug 08 (2007) 08:43AM ] |
| UncleFester
Aug 08 (2007) 11:10AM | It's clear why Creative is bombing -- they don't have a strong content partner. You ZVM owners are smart, imaginative and skilled enough to fill your players with movies, shows, DRM-free music and photos, but 99 percent of the population can't or won't do it. I hope they make inroads in being a "preferred player" for Amazon's new music/movie download service. |
| Zensen
Aug 08 (2007) 11:30AM ![]() | 16 GB is just not enough and to be honest. If it ever becomes as thin as say a motrola razr or a ipod. It better feel good as i find holding either the razr or Ipod to be the most uncomfortable thing ever. The zen is really not that heavy or that hard to carry around. Sheesh! Also Creative has other areas other than mp3 players. How's their sound card division and what not going. Is there mp3 player market really suffering that much to not turn over a profit? |
| mdscriber3
Aug 08 (2007) 12:49PM | Yeah, I'm strongly considering upgrading to the 60GB ZVM (fatty version, not willing to pay the premium for the slim import) and giving my daughter my pink 30GB ZVM for this reason, Zensen. |
| SlimDan22
Aug 08 (2007) 12:58PM | im kinda pissed that they plan on fasing out the hd players this is what made me stop buying from Iriver and going to creative personally i dont like flash players at the moment the limited amount of space is what turns me off even 16gbs isnt enough for me though but i dont just buy a mp3 player to listen to music i want to whole expeience and it seems flash players offer poor video support in my opinion |
| SlimDan22
Aug 08 (2007) 01:03PM | i also think creatives problem is they have too many players i know its good to offer choices but in there situation as a business they need to focus on a handful of really good DAPs and advertising apple didnt sell all there ipods from word of mouth |
| Raider Red
Aug 08 (2007) 01:10PM | except now the entire market is trending to flash players. the capacity is now there for bigger flash players. |
| kickenchicken
Aug 08 (2007) 02:32PM | This is WHAT CREATIVE SHOULD FOCUS ON. Zen Vision:M, Zen V Plus, Zen Stone. all the others are in a market thats EXTREMELY saturated (Zen nano, Stone Plus, Muvo line). And Dominic is right, people here in the US tend to go for things that are on Tv than for things that arent, even though they are better. if Creative cant afford Tv advertising, what about MAJOR newspapers and Magazines? (Sacramento Bee here in Ca, New york Times, and others) and even try doing street teams (hire people give em supplies to go out and let me test them out, advertise for them, set up booths around the Us, make them all colorful and shiny (i would go for it if was just shiny ) They really need to do some serious firing in the marketing department, and the design department, if they phase out there HD line, im out. i not only use my Vision:m for music, but also for video, i have 3 gigs left out of 30 gig ZVM, i want a 60gig so i can fit ALL my content, and it wouldn't fit then since i have tons of movies on my computer)They need to make there commercials/ads SIMPLE, simple for those non tech savvy people, like the Ipod commercials, you dont see them advertising there battery and specs. just a bunch of cool colors and shadows. (i agree, the panda one, the Zen Stone ads are GREAT ONES, there fun, (Stone one if hip) color ful, and a cute panda! they need to make there players appeal to ALL crowds. |
| TomRemixed
Aug 08 (2007) 02:47PM | I seriously doubt phasing out the HD players would be a good business strategy. |
| drakest1
Aug 08 (2007) 03:08PM | This is bad that they're looking to phase out HD players. I for one cannot imagine using something like the ZVW, since it's too video-centric for me, and flash players just don't have the capacity to cut it. I'm definitely not a happy camper. d. |
| kickenchicken
Aug 08 (2007) 03:09PM | i would be a happy camper IF they released a 30+gig flash player. |
| drakest1
Aug 08 (2007) 03:16PM | Yeah, thinking about it. If one of their upcoming flash players had similar specs to the current ZVM -- good video format support, pictures, USB hosting, screen size -- with at least 30GB capacity, then I'd be a happy camper too. d. |
| Cotton
Aug 08 (2007) 04:30PM | I wouldn't upgrade for a 32gig flash player. Yes, ideally I want flash (despite the slow speed synching), but what I really want is more capacity. Unless the next gen zen takes me to 64gb flash, or much higher on an HDD, then I'm going to have to go with the next gen iPod. |
| Im_Numba_1
Aug 08 (2007) 04:54PM ![]() | 64 gb flash man that would be sweet |
| Dilligas
Aug 09 (2007) 12:22AM | If it were a 16 or 32 GB flash-based ZVM replacement that could be expanded with SDHC (with 8 GB cards currently on the market and 16 GB cards on the horizon), I would be interested. If it had traditional DAP dimensions, the full-sized cards could fit while keeping capacities high and costs low. It would need to be able to play content off of the card though (not like the CF on the ZVW). |
| Ricardo Dawkins
Aug 09 (2007) 02:31PM | why they blame the Zune when Apple is beating them to the pulp ? Come on, Creative. There are more players than Apple and Microsoft on the DAP market. Sandisk is giving the America populace a run for their money. |
| ssjmichael
Aug 09 (2007) 02:46PM ![]() | Because Zune has taken over their spot in the HD market, while iPods have not. Those looking for an iPod alternative in stores like Best Buy/Circuit City would more than likely get a ZVM in the past, but now they'd be more likely to get a Zune. There aren't many other competitors in the HD market that have actually reached major retailers like those three. The only other player I've seen is Archos, and they're not exactly competing for the #2 spot in HD's like Creative and Microsoft are. [ edited Aug 09 (2007) 02:47PM ] |
| Ricardo Dawkins
Aug 09 (2007) 04:32PM | Microsoft will not only release Zune in Europe, they will release flash player sooner or later. I hope Creative make a more *creative* excuse when that date arrive. |
| ashxcore
Aug 09 (2007) 04:41PM | Hypothetically, if we were to make our own ads/fliers for Creative's products, posting them on bulletin boards at school, telephone lines, hanging them on abandoned buildings (whoops, that's just for inner-city folks, like me! XD), etc. the sales could increase. It would be like a revolution of sorts... *rallies for the cause* Maybe some of us would make the news! Tearing down Apple's empire an ad/flier at a time!! |
| tmc
Aug 10 (2007) 12:01PM | Blame it one the Zune?! WTF! Creative has only themselves to blame for not differentiating their product from the competition. How much money did Creative spend on advertising, promotions, and product placement? A mere drop in the bucket compared to the competition, many of whom already have long standing relationships with the consumer.. What this may mean is that the technology will become too expensive to make a profit in the ZVM form factor so the players will have to get bigger (ZVW) to become more feature rich.. (wifi, xfi, touchscreen, browser capable, maybe even gps). If this is where Creative is heading, it may be fort the best, but I'll have to make my decision whether to stick with a creative product or select their competition 2008-2009 (when I'll be due for another one). BTW: the price cuts for the ZVM all the way to $149 were a suicidal move which didn't gain Creative market share... (you only cut prices when your prepared to release a NEW PRODUCT version or your competition does first) Especially when Creative is competing with two DEEP POCKETED companies: Apple and Microsoft... Sandisk is no slouch either... (#3 behind Toshiba, Samsung) |
| faithkhinich
Aug 19 (2007) 12:15AM | also it would be nice if Creative will make HD players slimmer |