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2
CREATIVE TECHNOLOGY LTD AND ITS SUBSIDIARIES
CHAIRMAN’S MESSAGE
Dear Shareholders,
Fiscal 2015 continued to be a challenging year for the Group. While we have introduced a number of new products in the key
product categories, revenue contributions from these products during the year were not signicant enough to offset the decline in
revenues from existing products resulting from the challenging market conditions. The difcult and uncertain market conditions
for the Group’s products continued to adversely affect product sales and the nancial performance of the Group.
Sales for scal year 2015 were US$100 million compared to US$116 million for scal year 2014. Gross prot as a percentage
of sales was 29% in scal 2015 compared to 26% in scal 2014. Net loss for scal 2015 was US$33 million, compared to a net
loss of US$22 million in scal 2014. While sales were lower in scal 2015, operating results for the Group had improved slightly
due to higher gross prot margin and a reduction in operating expenses. However, net results for the year was negatively affected
by higher other losses, comprising mainly foreign exchange losses. Further highlights of the Group’s nancial performance are
detailed in the “Financial Highlights and Review” section of the annual report.
During the year, despite the very challenging market conditions, we continued with the development and introduction of new
products in key product categories, including the Sound Blaster X7, Sound Blaster E-Series, Sound Blaster Roar 2, Creative Outlier
and the Sound BlasterX Professional Gaming Series.
The Sound Blaster X7 is an ultra high-end Sound Blaster that comes with a very high quality USB DAC, Bluetooth and a powerful
high-end audio amplier.
The Sound Blaster E-Series are high performance and portable audio devices with headphone ampliers, comprising the professional-
grade Sound Blaster E5, and the smaller but very powerful Sound Blaster E3 and Sound Blaster E1 audio solutions.
The Sound Blaster Roar 2 is a smaller and feature-packed follow-up to the acclaimed Sound Blaster Roar portable Bluetooth
wireless speaker. Despite being smaller than its predecessor, the Sound Blaster Roar 2 offers more placement options and has
new passive bass radiators.
The Creative Outlier is a new and powerful wireless on-ear headphone with integrated MP3 player that caters for users with active
outdoor lifestyles. The appearance can be customised with a set of colourful acoustic rings.
We have also recently launched the Sound BlasterX Professional Gaming Series, a new line of high-end gaming audio peripherals
for gaming enthusiasts and pro-gamers. The series includes the Sound BlasterX H7 and Sound BlasterX H5 circumaural (over-the-
ear) and the Sound BlasterX P5 in-ear headsets, and the Sound BlasterX G5, an external USB 7.1 HD sound card with built-in
headphone amplier.
Looking ahead, for the current scal year, the Group expects no signicant change in market conditions. In view of the uncertain
and challenging market conditions, the Group is undertaking a restructuring exercise to reduce worldwide headcount and costs.
With a lower cost structure, and the potential revenue growth opportunities provided by the introduction of new products, the
Group is working towards an improvement in nancial performance for the year.
Thank you
Sim Wong Hoo
Chairman & Chief Executive Ofcer