Singapore’s Creative Technology did not record a US$100 million patent settlement from Apple as anticipated for the first quarter of its 2007 fiscal year. Creative will book the payment in the current quarter, noting that lower-than-expected taxes on the payment will boost its revenue, the company said Tuesday.
Creative, which makes MP3 players and other products,
settled a patent dispute with Apple
in August. Under the terms of that deal, Apple agreed to pay Creative a one-off payment of $100 million. Initially, Creative expected this payment would contribute $0.85 per share to the company’s results during the first quarter, which ended on Sept. 30.
Instead, Creative received the payment from Apple on Oct. 6 and will account for the results during the current quarter. Creative did not explain why the payment was not received as expected during the first fiscal quarter. However, a lower tax rate on the payment means Creative will record an after-tax profit of $82 million, or $0.98 per share, on the settlement during the current period, it said.
The company needs the boost. Creative recorded loss of $21 million for the first fiscal quarter, compared to a loss of $700,000 during the same period last year. In addition, the company’s revenue during the period fell to $241.5 million from $280.2 million one year ago.