Creative accounting looks bleak

Zen and MuVo music player manufacturer, Creative Technology, returned net losses of $31.7 million in its fourth quarter ended June 30, up from a loss of $19.3 million a year earlier.

Sales dropped 16 per cent to $139.5 million, the company said, warning of lower sales ahead on account of “adverse economic conditions” and increased future competition – prinicipally from Dell’s potential move back into the market.

Sales of personal digital entertainment products such as music players fell to 50 per cent of the company’s total in the last quarter,

The company estimated sales at $130 million to $140 million for the three months ending September 30, falling from $184.6 million a year earlier.

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