Creative Webcam Design

Creative has announces a breakthough in webcam design. Please refer to the press release

Press Release

Creative Announces a Breakthrough in Webcam Design
Wednesday September 14, 7:00 am ET

WebCam Live! Motion Combines Motorized Pan-N-Tilt Movement with a Wide-Angle Lens to Deliver MaxView Unmatched 200-Degree Horizontal and 105-Degree Vertical Views

MILPITAS, Calif., Sept. 14 /PRNewswire-FirstCall/ -- Creative (Nasdaq: CREAF - News), a worldwide leader in digital entertainment solutions, today announced a breakthrough in webcam design with the WebCam Live!® Motion. Featuring MaxView(TM), a combination of motorized Pan-n-Tilt and a ViewPlus(TM) 76-degree wide-angle lens, in addition to Smart Face Tracking, the WebCam Live! Motion quietly and smoothly follows user movements during video instant messaging. Capable of capturing high-resolution panoramic images with one easy click, the WebCam Live! Motion is now available for only US$149.99 at http://www.us.creative.com/.

The WebCam Live! Motion auto Pan-n-Tilt feature gives users the freedom of movement during video instant messaging with friends, family or business colleagues. The WebCam Live! Motion automatically follows users' natural movements during conversations, so they don't have to continually make manual adjustments to stay centered in the field of view. Users can select Smart Face Tracking so the WebCam Live! Motion follows the movements of one person, or they can leave it off to include the whole group. Ideal for broadband users, the Creative WebCam Live! Motion incorporates true high-speed USB 2.0 for delivering crisp, high-resolution video at up to twice the video frame rates of USB 1.1 cameras.

"We previewed the WebCam Live! Motion to the media in New York and San Francisco, and the journalists got really excited about how our WebCam physically moves to follow motion during video instant messaging, and how it quietly spans the room to take panoramic pictures," said Sim Wong Hoo, chairman and CEO of Creative. "And as much as we heard about the great performance, we also heard a lot of comments about how cool the WebCam Live! Motion looks."

The WebCam Live! Motion features a high-quality CCD sensor, and it delivers video at VGA 640x480 quality and software-enhanced still images of up to 1.3 megapixels. An ultra-smooth, exceptionally quiet precision Pan-N-Tilt motor enables the camera to deliver fluid video without distracting motor noise.

The WebCam Live! Motion looks great on any desktop or notebook monitor. Available in either pearl white or charcoal gray with a luminescent blue glowing ring on each side, the WebCam Live! Motion commands attention as it sits atop any desktop or notebook PC. The patent-pending Multi-Attach base easily and securely attaches the webcam to any flat panel, CRT monitor or notebook display for optimal positioning during video instant messaging.

Creative WebCam Center

The WebCam Live! Motion includes Creative's comprehensive WebCam Center application, which enables the following:

• Capture of live video or images, including a Panoramic feature that enables capture of a full 200-degree view of any space at high resolution;
• Remote monitoring -- for remotely capturing images of home or office which can be automatically uploaded to a website;
• Motion detection -- to record video of any movement near the WebCam Live! Motion and e-mail an alert that motion has been detected. The video can then be broadcast or saved to the PC;
• Time lapse video -- captures and replays snapshots taken over a period of time, enabling quick replay of a flower blooming or other event that would be difficult to capture in real time.

The Creative WebCam Center also enables video and pictures to be sent during conversations on Yahoo Messenger with a simple click of a button. Creative's complete line of webcams work seamlessly with Yahoo! Messenger and other popular instant messaging software, including AIM, MSN Messenger, and Windows Messenger, and come with a dedicated, high-quality microphone or headset to provide superior voice quality and clarity during video instant messaging.

All Creative webcams ship with the award-winning SightSpeed(TM) software for unparalleled, seamless video and audio sync over broadband during video calls, video e-mail, and text messaging. Creative webcams also include software from My Orb to allow users to remotely monitor their home from any Internet-enabled mobile phone, PDA or PC. The Live! Motion webcam includes One-Click Panoramic Photo Snap software for automatically taking several continuous still photos and stitching them together to create a high-resolution panoramic picture.

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Comment: Recently, Creative has been introducing a lot of new products like Zen Vision, the new XiFi soundcard series and now with this new webcam design. Although, this launch of webcam does not have much impact compared to the Zen and XiFi but with the increasing use of broadband and alot of young users keen on video messaging, it may be a silent product that help Creative capture upcoming market. The present webcam in the market just provide basic feature.

GTC : 1H05 Results

Results for 1H05 fm SGX,

Singapore, September 5, 2005 – Newly-listed Global Testing Corporation Limited (“GTC” or the “Group”), a company specialising in mixed signal and logic IC testing, today reported that revenue was down 12% to US$11.7 million for the quarter ended June 30, 2005 (“2QFY2005”), compared to 2QFY2004. Net profit decreased by 55% to US$2.5 million, compared to US$5.4 million recorded in the previous corresponding period.

On a half-yearly basis, Group revenue was down 14% from US$23.4 million in 1HFY2004 to US$20.0 million in 1HFY2005. Net profit declined 67% to US$2.5 million in 1HFY2005 from US$7.6 million in 1HFY2004. Mr Yang said: “On the back of a strong 2QFY2004 performance which coincided with the peak of the last semiconductor cycle, our interim results were impacted during the half year under review. This is in line with our earlier guidance in our IPO prospectus that Group’s net profit is expected to be lower year-on-year for the first half of FY2005, compared to the previous corresponding period. New designs for mobile handsets and digital handheld devices fueled volume growth and inventory build-up.”

On a sequential basis, Group revenue rose to US$11.7 million in 2QFY2005, up 42% from US$8.3 million in 1QFY2005. The Group’s net profit surged 6025% to US$2.5 million in 2QFY2005. Mr Yang commented: “Our strong growth in the second quarter of 2005 compared to the first quarter was driven by the rapid recovery in the semiconductor industry. We also successfully increased our revenue share for some of our existing major fabless customers such as Realtek and Sunplus.”

Capital expenditure (“capex”) committed in 2QFY2005 was US$12.8 million, principally for new capabilities and production equipment. Total capex committed in 1HFY2005 was US$15.8 million.

Gross margin for 2QFY2005 remains at a healthy level of 43.8% compared to 55.1% in the previous corresponding period, despite a decrease in utilization rate in 2QFY2005. However, the Group’s gross margin improved on a sequential basis from 33.1% in 1QFY2005 to 43.8% in 2QFY2005. This was mainly due to the Group’s better product and improved machine utilization rates, which rose from 56% in 1QFY2005 to 80% in 2QFY2005.

Basic earnings per share registered was 0.35 US cent in 2QFY2005. Net asset value per share was 11.38 US cents as at June 30, 2005.

Growth Strategies

Going forward, the Group believes that its growth in 3QFY2005 will be driven by increased wafer testing opportunities as its customers are guiding for a rapid increase in total wafer volume during the period. The demand for consumer IC testing, such as DVD chips, STB chips, HDD (hard disk drive) controller IC, gaming applications IC and LAN IC, is also expected to be strong.

Mr Yang said: “We expect our gross margin in 3QFY2005 to improve further with higher machine utilization rates, compared to the average of 80% recorded in 2QFY2005, as well as increasing wafer testing volume from major foundry customers and improving average selling prices. We expect these positive trends to continue, based on our customers’ current forecasts.”

Going forward, the Group intends to embark on a concerted sales strategy to focus on the provision of higher margin wafer sorting of mixed signal semiconductors to fabless companies and integrated device manufacturers. “We plan to leverage on our strong capabilities in wafer sorting and consumer mixedsignal IC testing to tap on these opportunities brought about by the growth in the trend of outsourcing semiconductor testing services by IDMs and fabless companies,” added Mr Yang. In addition, the Group plans to extend its capabilities to meet the demand for testing of larger wafers such as 12 inch (300 mm) wafers. The Group intends to utilize part of its IPO proceeds to purchase new factory premises, plant and equipment and construct ancillary facilities to handle this demand.

Comments - Results bad compared to last year, but improved fm Q1 and expected to improve further in Q3. At least, still profitable

Creative Technology : Q4 FY05 Results

SGX Announcement dated 10-Aug-05,

CREATIVE ANNOUNCES Q4 FY05 RESULTS
Revenues up over 50 Percent Year-Over-Year on 260 Percent Increase of MP3 Unit Sales; Company Reports Loss Primarily Attributable to Lower-than-Expected Selling Prices and Inventory Write Downs

SINGAPORE – August 11, 2005 – Creative Technology Ltd. (NASDAQ: CREAF), a worldwide leader in digital entertainment products, today announced financial results for the fourth quarter and fiscal year 2005, ended June 30, 2005. All financial results are stated in U.S. dollars.

Sales for the fourth quarter were up 51 percent year-over-year, coming in at $305.4 million, up from $201.8 million in revenue for the same quarter last year.

Sales for the 2005 fiscal year were up 50 percent year-over-year, coming in at $1.224 billion, up from $814.9 million for the 2004 fiscal year.

For the fourth quarter, net income was a loss of $31.9 million with EPS of a $0.38 loss per share, including an investment gain of $9.3 million. Excluding the investment gain, net income for the fourth quarter was a loss of $41.2 million with EPS of a $0.49 loss per share. This compares to net income for the same period last year of $6.6 million with EPS of $0.08, including an investment loss of $0.2 million.

Net income for the 2005 fiscal year including investment gains of $74.4 million and a noncash impairment charge on 3Dlabs of $65.2 million, was $0.6 million with EPS of $0.01. Net income for the 2005 fiscal year excluding investment gains of $74.4 million and a non-cash impairment charge of $65.2 million, was a loss of $8.6 million, EPS of a loss of $0.10 per share. Net income for the same twelve months last year including the benefit of a $12.2 million tax write-back and investment gains of $72.6 million was $134.2 million with EPS of $1.61. Net income excluding the benefit of a $12.2 million tax write-back and investment gains of $72.6 million was $49.4 million with EPS of $0.59.

“Our Q4 unit shipments of MP3 players were up more than 260 percent year-over-year. However, this high growth was below our aggressive expectations for the period,” said Craig McHugh, president of Creative Labs, Inc. “We had set our targets higher for unit volume and average selling prices for our MP3 players than we achieved in the period. Missing our targets caused us to miss our revenue goals and we were not able to reduce our inventory levels as rapidly and as much as we had expected. During the quarter, there was a decline in the value of certain components in our inventory, including flash memory and hard drives, so we needed to take an inventory write down. Even though we increased overall revenues 50 percent year-over-year, the lower-than-expected selling prices for MP3 players and the inventory write-downs negatively impacted gross margins in the period. These factors combined with currency losses resulted in our loss in the period. While we are very disappointed that we reported a loss for the fourth quarter, we believe we can get closer to break-even in the current quarter and that we can return to profitability by the end of this calendar year. We plan to return to profitability by continuing to grow our MP3 business and growing our audio business following the launch of the new Sound Blaster® X-Fi™ and the new Xtreme Fidelity™ audio standard, which we introduced this week.”

“While we continue to work diligently through our inventory position and are very focused on returning to profitability, we are not hesitating in driving our company forward,” said Sim Wong Hoo, chairman and CEO of Creative. “Just this week, we introduced what I believe will be the future direction of audio – the new Xtreme Fidelity audio standard and its first incarnation in products, the Sound Blaster X-Fi sound cards. Over the last month we have toured the world demonstrating the new Xtreme Fidelity standard and the Sound Blaster X-Fi to the press, and the response has been phenomenal. The new Xtreme Fidelity literally wowed people as we clearly demonstrated how the Sound Blaster X-Fi family of ultra high performance sound cards can dramatically enhance MP3 and CD music, virtually any music or audio, accelerate gaming, and provide an amazing headphone experience.”

“Over the past seven years we have relentlessly and painstakingly built our EAX standard to become the unified audio standard for the PC platform,” continued Sim. “Xtreme Fidelity will be the fifth generation of this well-established PC audio standard, where virtually all existing games and media content under the Windows platform can be instantly enhanced without any modification.”

“We also showed the press the award-winning Zen™ Micro Photo MP3 player and the new Zen Vision, our music, photo and video player, due to be released soon,” continued Sim. “We received overwhelmingly positive responses to these exciting new products from some of the toughest and most astute reviewers. With the Zen Vision, you can now carry all of your music, all of your photos and all of your favorite videos in the palm of your hand. I believe we now have the sexiest, most appealing and most versatile digital music, photo and video player in the world. We believe that we will greatly strengthen our product offerings in our key product categories in time for this holiday season. By next year you can expect the Xtreme Fidelity standard to be included in some of our high-end digital media players. With our huge arsenal of audio products, technologies and intellectual property, you can expect Xtreme Fidelity to proliferate into all kinds of audio products going forward.”

Comments - Much worse than expected. More losses expected this quarter before it return to profitability next quarter. I expect share price to continue to drop then. Will re-evaluate again after next quarter results, unless price drop below $10 :D

Reports (added on 12-Aug)

• DBSVickers dated 12-Aug,
  CREAF’s 4QFY05 earnings would be within expectation if we exclude the S$20m inventory write-down. If we also exclude investment gain, net loss would be US$12m. No specific guidance was offered but the Group targets to breakeven this quarter and return to profitability in the Christmas quarter. The fall in its investment value has resulted in a lower historical BVPS of S$11.40. New products were announced and we see a potential blockbuster in X-Fi, an audio chip processor that could have numerous applications. With the stock trading near book value and the Christmas quarter approaching, we believe downside risk is limited while earnings momentum should pick up from the trough. As such, we upgrade the stock to a HOLD but trim our DCF derived price target to $14.00.



• CIMB-GK dated 12-Aug,
  We believe Creative will continue to face ferocious competition in MP3 products. We understand that Apple’s new iPod mini and iPod are due for release this Christmas. Other players such as Samsung, Sony, and iRiver have also been launching new products. Another threat may come from MP3-enabled handphones. Creative is now pinning its hopes on its new audio product, the X-Fi, which provides a more realistic surround experience with headphones or multi-channel speakers for all types of digital entertainment. However, we are more cautious and have modelled moderate growth. We have slashed our FY06-07 net profit forecasts by 76-79% to reflect lower gross margin assumptions. Our unchanged target price of S$8.45 is based on 0.8x P/BV, which appears to be the trading support in the last five years.

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Disclaimer : The above info is for reference only, not an inducement to buy or sell.

Creative Technology

Yet another chart fm ShareKing,



Another Chart for TC to comment :)

Report fm GKGoh dated 25-April here
Report fm OCBC dated 22-April here
Report fm Kim Eng dated 22-April here

All 3 recommended SELL when the share price was $16+. OCBC stated a fair value of $14, which is the Book Value. Kim Eng had a 6-mth tgt price of $12.50.

Comments : I am not vested here but am looking to buy some Creative shares. However, as there's been a change in Creative business strategy, to focus on MP3 business, I have put that on hold. Reasons being their MP3 business is not growing (stagnant at 2Mil sets for last 2 Quarters), Low Margin (3%+ vs 15% previously) and Large Inventories (2mths) buildup. I'll wait for their next Quarter results for directions.