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March 25, 2008 |
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SINGAPORE CREATIVE: Selling Headquarters for SGD$250 Million Singapore's Creative Technology Ltd. agreed to sell and lease back its headquarters in the city-state for SGD$250 million, Reuters reports. According to the report, the company said in a statement it was expected to reap a gain of SGD$200 million from the deal. The gain would be treated as a deferred gain that would be amortized and recognized in its income statement over the lease term of five years, the report notes. Koh Gui Qing at Reuters writes that the deal was likely to be completed by the end of June. The building's buyer was not named, the report adds. Singapore-based Creative Technology Ltd. -- http://www.creative.com -- makes digital entertainment products, including portable audio players, PC sound cards, graphics accelerator cards, and digital cameras. The company also makes modems and CD and DVD drives for PCs. Subsidiaries include Cambridge Soundworks, Creative Labs, and E- MU/ENSONIQ. Tough competition in the electronics market has hurt Creative, causing it to incur recurring losses. The company reported a net loss of US$114.33 million in the three months to March 31, 2006, reversing the year-ago profit of US$15.91 million due to one-time charges and a drop in flash memory prices, which led to an inventory writedown. The company is also facing ongoing disputes with several companies in the United States. Creative also periodically receives licensing inquiries and threats of potential future patent claims from a variety of entities, including Lucent Technologies, MPEG LA, Dyancore Holdings, Advanced Audio Devices and Nichia Corporation. |
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