Creative continued to erode shareholders funds for 3 months ended Mar ’13 with losses ballooning to US$10.4mln against US$1.5mln last year while sales declined 25% to US$33.8mln.

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Source:Lim & Tan Sec.Maintain SELL.Despite the company trading close to its asset value,we see little reason to want to own it given its outdated business.Management expects to continue to remain in the red for the next quarter and for revenues to remain at these depressed levels.With the mass market launch of smart-phones and tablet computers, Creative’s existing product portfolio is increasingly irrelevant.There is still no update on the company’s new tablet chip expected to be launched in China.The continued weak performance was attributable to the uncertain global economic conditions as well as intense competitive pressures.