Analysts expect Creative Technology to report flat first-quarter profits when it issues its first-quarter results on Thursday.
According to analysts, the flat profits are probably due to high advertising expenses.
However, robust MP3 player sales are expected to have boosted revenues. Creative's Nomad MP3 player is a significant competitor to Apple's iPod.
Kim Eng Securities analyst Dharmo Soejanto told Reuters: "There should be a fairly strong seasonal pick up in the fiscal second quarter – we're expecting a 50 per cent rise in revenues and a quadrupling of net profit from the first quarter."