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News
Delayed Apple Payment Helps Creative
Monday, October 30th, 2006 at 2:00 PM - by Brad Cook
Creative Technology on Tuesday said that it received its US$100 million patent lawsuit settlement from Apple on Oct. 6, which means that it will be applied to the current quarter, rather than the previous one. While the company received the money later than it expected to, Creative said that the delayed payment will help its bottom line because of lower-than-expected taxes, according to IDG News.
Creative had expected the money to add $0.85 per share to its financial results for the quarter ending Sept. 30, but now it expects $0.98 per share to be added to its current quarter profits. Last quarter, the company lost $21 million, compared to a $700,000 loss last year, on revenue of $241.5 million, which was down from $280.2 million a year ago. Creative did not say why the payment was delayed.
Creative and Apple traded lawsuits earlier this year over the patent Creative said it owned on the interface used by the iPod. A settlement was announced in August, at which time Apple CEO Steve Jobs remarked: "Creative is very fortunate to have been granted this early patent. This settlement resolves all of our differences with Creative, including the five lawsuits currently pending between the companies, and removes the uncertainty and distraction of prolonged litigation."
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