August 09, 1999 06:16
Radica(R) Games Limited Reports Second Quarter Results
HONG KONG, Aug. 9 /PRNewswire/ -- Radica Games Limited (Nasdaq: RADA) reported today an after tax profit of $2.2 million for the second quarter ended June 30, 1999 or $0.12 per fully diluted share versus $10.2 million or $0.47 per fully diluted share for the same period last year. After tax profit for the six months ended June 30, 1999 was $5.4 million or $0.28 earnings per share versus $19 million or $0.87 for the six months ended June 30, 1998.
Total revenues for the second quarter ended June 30, 1999 were $23.8 million, compared to $34.3 million for the same period in 1998. Total revenues for the six months ended June 30, 1999 were $41.7 million, compared to $62.2 million for the same period last year.
"As we stated in the first quarter, 1999 represents a return to normal seasonality patterns for Radica. The results of the first and second quarters of 1998 were unusually strong due to timing of key fishing product introductions last year," said Pat Feely, Chief Executive Officer.
"In 1998 the fishing category was red hot and accounted for almost half of Radica's sales. 1999 sales of fishing games have continued at a steady but considerably lower level. As a result in the second quarter fishing products accounted for only 19.6% of Radica's sales," added Feely. "Even so, our recently released Ultimate Bass Fishin'(TM) game was the number 3 ranked game in the industry in sales per store as reported by the NPD Group's retail tracking survey for June. This indicates to us that fishing will continue to be a significant long term category in the future in spite of the decline from 1998.
"Radica's Buckmasters(R) Deer Huntin'(TM) game was ranked number 1 in the industry in June according to the same NPD report. Radica plans to introduce Buckmasters(R) Bow Huntin'(TM) for late fall shipment this year. This product which was originally planned for 2000 has been accelerated to take advantage of the strength of the hunting category in 1999," according to Feely.
The Company also announced that it has completed the one million share repurchase that was announced at its shareholder meeting in April and that an additional one million share repurchase plan has been authorized by its Board of Directors. During the quarter ended June 30, 1999, the Company repurchased 982,700 shares at an average price of $11.79. On a year to date basis, Radica has purchased 1,317,500 shares or approximately 7% of the shares outstanding at the beginning of the year.
Radica also announced that it has provided $1 million of bridge loan financing to Sharegate Inc. (formerly Utel) in anticipation of the completion of a round of equity financing that is currently in process at Sharegate. Radica has previously invested in two prior rounds of financing for the telecommunications venture. The bridge financing will be convertible into preferred shares of Sharegate upon completion of the next round of financing.
The foregoing discussion contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from projected results. Forward-looking statements include statements about efforts to attract or prospects for additional or increased business, new product introductions and other statements of a non-historical nature. Actual results may differ from projected results due to various Risk Factors, including Risks of Manufacturing in China, Dependence on Product Appeal and New Product Introductions, and Dependence on Major Customers, as set forth in the Company's Annual Report on Form 20-F for the fiscal year ended October 31, 1998, as filed with the Securities and Exchange Commission. See "Item 1. Description of Business -- Risk Factors" in such report on Form 20-F.
Radica Games Limited (Radica) is a Bermuda company headquartered in Hong Kong. Radica is a leading developer, manufacturer and distributor of electronic handheld and table top games. Radica has subsidiaries in the U.S.A., Canada and the U.K., and a factory in Dongguan, Southern China. More information about Radica can be found on the Internet at "www.radicagames.com" and about Girl Tech at "www.girltech.com." |
