Homepage
PR Newswire
6 years after Creative Technology's pay year, the company is only left with 42mil, or ~35% of its cash hoard at the end of that pay year (excluding ~7mil of financial assets).
Like most tech companies, Creative Technology expenses its R&D and so negative PBIT will be almost 100% dis-accretive to cash position. It holds its inventory for ~6months, collects from its customers within a month (that is really low as I do not remember they operate their own retail storefronts) but pays its subcontractors after 3 months --> As a result, working capital is relatively low wrt to its equity base.
Covid-19 delayed the day of reckoning by a year or two. And it is quite clear it may still have some legs to run in the coming 4-6years. It will probably last another decade if it decides/manages to sell its technology (which is not accounted on the balance sheet). In the absence of an outright sale of the company, good odds Creative Technology could last beyond some of the older VBs.
Revenue/PBT/Cash (in '000 USD)
FY24: 62,779 / (10,721) / 42,122
FY23: 56,236 / (16,549) / 56,320
FY22: 61,324 / (10,201) / 71,294
FY21: 84,467 / (7,538) / 86,202
FY20: 61,155 / (17,585) / 96,770
FY19: 54,924 / (5,437) / 107,766
FY18: 66,071 / 40,461 / 114,817 --> litigation pay year
Like most tech companies, Creative Technology expenses its R&D and so negative PBIT will be almost 100% dis-accretive to cash position. It holds its inventory for ~6months, collects from its customers within a month (that is really low as I do not remember they operate their own retail storefronts) but pays its subcontractors after 3 months --> As a result, working capital is relatively low wrt to its equity base.
Covid-19 delayed the day of reckoning by a year or two. And it is quite clear it may still have some legs to run in the coming 4-6years. It will probably last another decade if it decides/manages to sell its technology (which is not accounted on the balance sheet). In the absence of an outright sale of the company, good odds Creative Technology could last beyond some of the older VBs.
Revenue/PBT/Cash (in '000 USD)
FY24: 62,779 / (10,721) / 42,122
FY23: 56,236 / (16,549) / 56,320
FY22: 61,324 / (10,201) / 71,294
FY21: 84,467 / (7,538) / 86,202
FY20: 61,155 / (17,585) / 96,770
FY19: 54,924 / (5,437) / 107,766
FY18: 66,071 / 40,461 / 114,817 --> litigation pay year