November 01, 1999 18:45
Radica(R) Games Limited Reports Third Quarter Results
HONG KONG, Nov. 1 /PRNewswire/ -- Radica Games Limited (Nasdaq: RADA) reported today that total revenues for the third quarter ended September 30, 1999 were $47.4 million, compared to $49.8 million for the same period in 1998. Total revenues for the nine months ended September 30, 1999 were $89 million, compared to $112 million for the same period last year.
After tax profits of $8.8 million were reported for the third quarter ended September 30, 1999 or $0.48 per fully diluted share versus $14.9 million or $0.71 per fully diluted share for the same period last year. After tax profit for the nine months ended September 30, 1999 were $14.2 million or $0.74 earnings per share versus $33.9 million or $1.58 for the nine months ended September 30, 1998.
"While year to year quarterly comparisons have been adversely affected by the decline of fishing product sales, we are very pleased with the performance of the rest of Radica's handheld games line. Third quarter sales of Radica branded handheld games excluding fishing games increased by 38% over the same period in 1998. In addition our overall operating profit margins of 17.6% for the quarter and 14.7% year to date are among the best in the industry this year and indicate the strength of our business even without a hit fishing product," said Pat Feely, Chief Executive Officer.
"We were extremely pleased to ship so much innovative new product during the quarter," said Feely. "Included in the seven new products shipped during the quarter were Tiger Woods Ultimate Golf(TM); Girl Tech(R) Bug 'Em(TM) and Keep Safe Box(TM), Fish or Man(TM) (Radica's latest new two player fishing game), Virtual Snowboard VSB(TM) (a skateboard sized product that you stand on to play), Crossword Challenger(TM) and NASCAR(R) Speedzone.
"It's been approximately a month since the Taiwan earthquake and production in Taiwan is gradually returning to normal. While this does not appear to affect the majority of our products this year there are still uncertainties, shortages of certain components and extended lead times on component ordering. As a result we would encourage conservatism in investors estimates for the fourth quarter of 1999 and first half of 2000," said Feely.
During the quarter ended September 30, 1999, the Company repurchased 71,000 shares at an average price of $9. On a year to date basis, Radica has purchased 1,388,500 shares or approximately 7.35% of the shares outstanding at the beginning of the year.
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