Creative blames flash memory for net loss

The firm blamed a drop in flash memory prices as it wrote off excess stock it had, and also said the fact it restructured its 3D Labs workstation business had a negative effect.

The drop in flash memory prices was "precipitous" at the end of the quarter.

It sold $225.7 million of kit in the quarter, which ended for Creative on the 31st of March, compared to $333.8 million last year. In the equivalent period in 2005 it turned in a net profit of $15.9 million. µ

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Creative winds down ATI business