Cost of goods dipped 6% to $15 million.
Total expenses increased 1% to $10.6 million with R&D expenses increasing 7% to $3.2 million.
However, it registered net other gains of US$266,000 due mainly foreign exchange gain compared to net other losses of $2.07 million a year ago mainly on foreign exchange loss.
Loss per share was US$0.06, compared to a loss per share of US$0.09 previously.
No dividend was declared for the quarter.
In its outlook, Creative Technology expects no significant change in market conditions and the overall market for the group's products remains challenging.
Revenue is expected to be lower in the upcoming quarter and the company expects to report an operating loss.
Shares in Creative Tech closed 7 cents higher at $1.29 on Friday.