Creative Technology Ltd. announced unaudited consolidated earnings results for the second quarter and six months ended December 31, 2015. For the quarter, the company's net sales were USD 26,502,000 compared with USD 31,302,000 a year ago. Profit before income tax was USD 17,039,000 compared with loss before income tax of USD 9,155,000 a year ago. Net profit attributable to equity holders of the company was USD 11,969,000 or USD 0.17 per basic and diluted share compared with net loss attributable to equity holders of the company of USD 9,194,000 or USD 0.13 per basic and diluted share a year ago. Revenue in the second quarter and first half year of fiscal year 2016 was lower due to the uncertain and difficult market conditions which continued to affect the sales of the Group's products.

For the six months, the company's net sales were USD 49,013,000 compared with USD 55,596,000 a year ago. Profit before income tax was USD 3,164,000 compared with loss before income tax of USD 18,998,000 a year ago. Net loss attributable to equity holders of the company was USD 1,958,000 or USD 0.03 per basic and diluted share compared with net loss attributable to equity holders of the company of USD 19,027,000 or USD 0.27 per basic and diluted share a year ago. Net cash used in operating activities was USD 10,912,000 compared with USD 14,420,000 a year ago. Purchase of property and equipment was USD 18,000 compared with USD 60,000 a year ago. Net cash used in operating activities was due mainly to withholding tax payment and lower trade payables. The company reported net asset value per ordinary share USD 1.33 as on December 31, 2015.

Revenue is expected to be lower in the third quarter of 2016 and the Group expects to report an operating loss. A recent settlement of a patent infringement lawsuit by a wholly-owned subsidiary, ZiiLabs Inc., Ltd, is expected to contribute approximately USD 0.14 of earnings per share for the quarter.