Apple's iPod rival Creative Technology has warned on an operating loss in its third quarter, which ended March 31.

The company expects an operating loss of between $55-$65 million on revenues of $220-$230 million, it said in a statement.

These results are in addition to the previously announced non-cash impairment charge of $25 million and the restructuring charge of $9 million associated with the refocus of Creative's graphics business, the company said.

"The operating loss is primarily attributable to a drop in flash memory prices in the quarter. The sharp drop had a significant negative impact on sales in March, and resulted in lower revenues and gross margins, and inventory write-downs in the period," Creative said in a statement.