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Creative Technology Ltd (“Creative”) today announced that it expects to recognize an additional licensing income of US$20 million in the current quarter ending 31 December 2012. With this licensing income, Creative expects to report an operating profit for the quarter.
The licensing income relates to a license agreement ZiiLABS Inc., Ltd, a wholly owned subsidiary of Creative, entered into today with Intel Corporation to license certain of its technology relating to high performance workstation graphics chips (“License Agreement”). Under the License Agreement, Creative will receive a consideration of US$20 million for a fully paid license.
The License Agreement shall take effect upon the completion of the divestment of ZiiLABS Limited, a wholly owned subsidiary of Creative in the United Kingdom (as announced by Creative today in a separate announcement under the heading “Divestment of a Subsidiary”).
The License Agreement is expected to take effect in the current quarter ending 31 December 2012.
Ng Keh Long
Company Secretary
19 November 2012