Mr. Trinidad,
Just wondering, what (if any) role, the fact that Radica went through and completed a plant expansion during Q2-Q3 98 had on any of your inventory calculations? Also, the fact that the company stated it built up volume in inventories of it's ODM units in Q2 using its brand spanking new 70% increase in manufacturing capabilities to accomplish this and to begin to build substantial volume to meet demand for christmas season, for it's name brand line of toys, which they fell far short of being able to accomplish last year at full capacity!
Also, does it matter that they have doubled their market percentage in the last year, Becoming the number one handheld toy manufacturer in the world with (the last I saw) about 45% (it was around 22% this time last year I believe) of the market, and more than 55% if you include their ODM toys.
Does it matter at all, that even as margins stabilized and revenue growth diminished somewhat, that it still grew even in a period as the old line (fishing games, (you broached this topic in your life-cycle post I believe)) were dropping off in sales while new lines were effectively picking up the slack enough to still show growth.
It appears more to me that Radica has simply gone through a growth and diversification stage the last two quarters which make your static statistics look discourageing when actually the opposite is the truth.
Best Wishes,
Swedelo |
