Slowing PC demand hits Creative TechnologyMultimedia hardware supplier Creative Technology posted profit of $US26.5 million for its second fiscal quarter ended December 31, 40.4 per cent less than the $44.5 million for the corresponding quarter the year before.
A downturn in the PC market caused a significant shortfall in demand and revenue from the system integration and OEM channels during the quarter, leading to a revenue shortfall from its audio device business and lowering gross margins, according to the company.
Personal digital entertainment products such as the Nomad Jukebox provided a bright spot, with sales growth of 166 per cent over the previous year's quarter. Sales of such devices represent over 10 per cent of overall company sales and this sector is now key to Creative's strategy.
The company announced last week it has shipped its 100,000th unit of the Nomad Jukebox since its introduction in September.
Creative now intends to focus its worldwide engineering and marketing resources on the digital jukebox market to offset the downturn in PC-related revenues, the company said.
Lights, cameras, Logitech
Logitech has announced its first dual purpose camera is available to the channel.
The Quickcam Traveler allows users to store up to 200 photos or transfer pictures instantly to their PC. When connected to the computer, the unit operates as a VGA camera with a built-in microphone capable of recording video at up to 30 frames per second.
The camera can be attached to a laptop or flat panel monitor and connects via a USB port. It is compatible with Windows 98, 2000 and ME operating systems and will retail for $349. Other features include a self timer, resolution adjustment and macro setting.
AMD flashes Palm
AMD will provide flash memory devices to handheld vendor Palm under an agreement which will see the chip manufacturer supply components for the PDAs.
AMD has been named the primary provider of flash memory devices for Palm through to 2003.
"AMD is extremely excited about our alliance with Palm," said the group vice president of AMD's memory group, Walid Maghribi. "AMD's chip scale packaging and advanced power management will help Palm deliver platforms with a smaller form factor and longer battery life."
The agreement is part of the company's strategy to diversify its penetration in the flash memory market, he said.
According to Palm, the memory will allow users to upgrade their handhelds with the new Palm operating system.