Creative 2008 Annual Report Download - page 10

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10
MANAGEMENT’S฀DISCUSSION฀AND฀ANALYSIS฀OF฀฀
FINANCIAL฀CONDITION฀AND฀RESULTS฀OF฀OPERATIONS
RESULTS OF OPERATIONS
The following table sets forth, for the periods indicated, selected statement of operations data as a percentage of sales:
฀ ฀ Years฀ended฀June฀30
฀ 2008฀ 2007฀ 2006
Sales,฀net฀ 100฀฀%฀ 100฀฀%฀ 100฀฀%
Cost฀of฀goods฀sold฀ 78฀ 81฀ 85฀
Gross฀profit฀ 22฀ 19฀ 15฀
Operating฀expenses:
฀ Selling,฀general฀and฀administrative฀ 19฀ 19฀ 18
฀ Research฀and฀development฀ 8฀ 7฀฀ 7
฀ Impairment฀of฀goodwill฀and฀other฀intangible฀assets฀ –฀ –฀ 3฀
฀ Other฀charges฀ 1฀ –฀฀ –
฀ Chairman’s฀gift฀of฀shares฀to฀employees฀ 1฀ –฀฀ –
Operating฀loss฀฀ (7)฀ (7)฀ (13)฀฀
฀
Gain฀(loss)฀from฀investments,฀net฀ 2฀ –฀฀ 2฀
Interest฀income฀ 1฀ 1฀ 1
Interest฀expense฀ (1)฀ (1)฀ (1)
Others฀ 2฀ 13฀ –฀
(Loss)฀income฀before฀income฀taxes฀and฀minority฀interest฀ (3)฀ 6฀ (11)฀
Income฀tax฀(expense)฀benefit฀ –฀ (3)฀ 1
Minority฀interest฀in฀loss฀ –฀ –฀฀ –
Net฀(loss)฀income฀ (3)฀%฀ 3฀%฀ (10)฀%
The following table sets forth Creative’s net sales by product category expressed as a percentage of sales for the past three
fiscal years:
฀ ฀ Percentage฀of฀Net฀Sales
฀ ฀ for฀fiscal฀years฀ended฀June฀30
฀ 2008฀ 2007฀ 2006
Personal฀Digital฀Entertainment฀ 53฀%฀ 63฀%฀ 65฀%
Audio฀ 13฀%฀ 13฀%฀ 13฀%
Speakers฀and฀Headphones฀ 26฀%฀ 18฀%฀ 15฀%
All฀Other฀Products฀ 8฀%฀ 6฀%฀ 7฀%