Our economy seems to get worse every day. Stocks are extremely volatile at the moment and investors are getting scared. Welcome to Creatives world. Creative has been dealing with tough financial times for the last three years, and according to their latest Annual report it isn't getting better.
Sales are down 20% from last year, going from $915 million to $737 million. Overall they ended in the red with a net loss of $20 million for the year. So what should shareholders do? Creative's CEO, Sim Wong Hoo wants you to hold on tight and bear with the company during their rough times. In the report, he provides insight on their adversities and on a new direction for the company. Here are excerpts from his message:
CHAIRMAN’S MESSAGE
Dear Shareholders,
Creative is a company that is known to thrive in adversity. The adversities we are now facing, both internally and externally, will serve to propel us forward, albeit more carefully.
We have a very clear vision of what we want to achieve. We just have to be a lot more focused. We are finally seeing the light ahead of us. The path ahead could undoubtedly still be thorny and challenging, but we have the technology and financial resources to clear the way.
The vision I am talking about is to create a totally new Creative, with a new product line and a new business model, whilst leveraging on the technologies we have mustered over the years, which will again see Creative set a new trend in the industry and open up new opportunities for all.
I am very excited about this new vision, which we will unveil in the next quarter, and anxiously awaits to tell you about it.
.....
In July 2008, Creative repaid the entire $100 million outstanding balance of its syndicated term loan. With this repayment, Creative is now practically debt-free, with no outstanding bank borrowing. This has positioned us well to take advantage of the opportunities offered by the new product line and business model that I mentioned earlier.
Finally, I would like to thank all of you for your patience with Creative. We need this wide breathing space to prepare the company for the exciting opportunities ahead. I believe it will be something you will be very proud of. To Believe in the Impossible.
Thank you.
Sim Wong Hoo
Chairman & Chief Executive Officer
I've set my hopes high for Creative too many times only to see them fall short. Yet, this passionate message certainly resonates a bit excitement inside of me. What new product line would bring this sinking ship afloat? We'll find out as early as next quarter, but I'd love to hear some predictions from our members here.
Keep Hope Alive!
Annual Report 2008 (PDF file)
comment: 43 | Wednesday, October 22 (2008) 02:20PM | Posted by:
ssjmichael
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