Creative reduces H1 loss to US$1.2 million as restructuring lowers expenses

[SINGAPORE] Creative Technology posted a net loss of US$1.2 million for the six months ended Dec 31, 2025, narrowing from a loss of US$6.1 million in the year-ago period.The home-grown electronics company attributed the improvement to lower payroll and related expenses following a restructuring exercise undertaken in FY2025, which resulted in a leaner and more efficient cost structure, it said in a bourse filing on Thursday (Feb 12).The latest loss included interest income of US$200,000 and other net gains of US$100,000.Creative has not recorded a full-year profit since FY2016. Its restructuring involved cutting its workforce by 14 per cent last March. Net sales for the first half of FY2026 fell 9 per cent to US$34.2 million, from US$37.4 million a year earlier. The decline was mainly due to trade and geopolitical tensions, as well as the company’s efforts to streamline its product offerings and improve gross margins. The lower revenue was partially offset by a 19 per cent reduction in total expenses to US$11.7 million compared with the corresponding period in FY2025.Research and development (R&D) expenses fell 52 per cent year on year, largely due to lower headcount following the restructuring exercise aimed at sharpening the company’s R&D focus.Looking ahead, Creative expects revenue in the next half year to be lower in line with its historical seasonal trends and anticipates reporting an operating loss for the period.The company said market conditions are expected to remain challenging amid “adverse macroeconomic environment arising from the uncertain US trade policies and ongoing geopolitical tensions that led to cautious consumer demand”.Creative is currently led by chief executive officer Sim Li Ern, nephew of founder Sim Wong Hoo, who died in 2023. Sim Li Ern was appointed CEO last month and assumed the role of chairman earlier this month.Under Sim Wong Hoo who founded the firm in 1981, Creative grew substantially in the 1990s and put Singapore on the world map with its wildly popular Sound Blaster card, launched in 1989.The product was a game changer in allowing multimedia content to come alive on a personal computer. They were outselling competitors by a ratio of seven to three through the 1990s due to their affordability and quality. More than 400 million units of the product have been sold since.Creative became the first Singapore company to list on Nasdaq in 1992. It is also the first Singapore firm to wage war with Apple over portable music players. Creative launched its Nomad MP3 player in 1999, two years before Apple unveiled the iPod.Creative shares closed at S$0.72 on Thursday, down S$0.005 or 0.7 per cent, prior to the results announcement.