Creative Technology, which has been suffering from declining revenue for years, has reversed the trend, due to better sales of new products amid stronger demand from the work-from-home crowd.

For 1HFY2021 ended Dec 31 2020, the maker of audio products recorded revenue of US$47.5 million, up 52% y-o-y. From losses of US$8.5 million in 1HFY2020, the company reported earnings of US$45,000. 

There were previous periods when the company reported better earnings, but they were mostly lifted by one-off wins from its string of intellectual property battles.

SEE: Creative Technology's shares see significant rise; prompts SGX query

During the period, gross margin was 33%, an improvement from 28% managed in 1HFY2020, which the company attributes to higher margin products making up a higher proportion of sales.

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However, Creative warns that economic recovery remains uncertain, although it aims to maintain revenue at the current level while improving operating earnings for the current 2HFY2021.

As at Dec 31 2020, the company, which has minimal liabilities, had a cash balance of US$97.5 million, which works out to US$1.38 in cash per share, or $1.85.

Creative closed Feb 4 at $2.51, down 2.71% for the day.