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News
Apple Feeds Creative’s Bottom Line
Tuesday, January 30th, 2007 at 2:00 PM - by Jeff Gamet
iPod competitor Creative Technology put US$92.2 million into the bank for its second quarter thanks to a $100 million licensing payment it received from Apple Inc. The one-time payment was part of a settlement over a patent dispute involving technology used in iPod media players.
Creative reported $425 million in revenue for the quarter, up from $391 million for the same quarter last year, according to Digit. The $100 million payment from Apple translated into $82 million in net income, boosting Creative's net income up from the $9.9 million it earned without the settlement.
The patent dispute stemmed from Creative's claim that Apple was using MP3 player interface technology in the iPod without permission. As part of the licensing deal, Apple can recoup some of the money it paid should Creative license its interface patents to other companies.
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