Creative Technology Cuts Outlook

The company cites weaker-than-expected overall market demand for MP3 players.
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Creative Technology

(CREAF)

cut its fourth-quarter sales outlook, citing weaker-than-expected overall market demand for MP3 players and lower average selling prices.

The Singapore-based maker of digital entertainment products for PCs expects sales for the quarter ending June 30 of about $300 million, up 50% from a year ago. Creative had originally planned for revenue growth of about 65% to 80%, or $330 million to $360 million.

Creative also reduced its gross margin forecast and said it expects to report an operating loss for the quarter.

Shares of Creative were down 43 cents, or 6%, to $6.99 in early trading Monday.