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Non-Tech : Radica Games (RADA)

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To: Gary105 who wrote (2424)	2/9/1998
From: David	Read Replies (2) of 7111

Hi Gary, I have read all of the comments on the perceived lack of product at stores with interest and some frustration as a lot of the comments show stores are receiving product regularly - the "problem" being that it sells out very fast. When a product is hot, no-one knows what sell through will be, so everyone is correct in their comments to some degree. Yes, our customers have all under-ordered if you look at it in hindsight and from the perspective of not meeting market requirement; also yes, we did not stockpile vast quantities of product (and will not) so that people can place last minute orders if they didn't order enough. This is how companies get into trouble, because at some stage they end up with a huge amount of inventory that gets written off. The problem that faces everyone is leadtimes - we must place orders three months in advance for chips and so cannot simply react to the market on a daily basis - this has nothing to do with production capacity. I'm not sure this helps - but I am very glad that we have this problem - if you sell everything you build you can't be doing too badly ! (Obviously there is always a balance to achieve and we hope we are pretty close to getting it right). Best regards, David

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