Radica Games (RADA) Message Board

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Non-Tech : Radica Games (RADA)

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To: mod who wrote (2564)	2/12/1998 11:36:00 PM
From: Jonathan Bird	Read Replies (1) of 7111

So if Radica can make (and sell!) more of their higher-margin games, the loss of the Hasbro business will not have much, if any, negative effect. I got the impression from David's post.. Message 3376629 ..that currently Radica is not capacity constrained. So as of now I don't think that they have any thing waiting to fill the void of lost contracts. But I would expect that these contracts will linger on for a while and by then i could be a different story. Another concern, if you believe Radica will lose the Hasbro OEM business eventually, is how much of the factory expansion was planned to be used for Hasbro? Hasbro accounted for fully 28% of the units manufactured last year (though only 18% of the revenue). That's an angle I hadn't thought of. Thankfully Radica's growth is so rapid that any capacity that is freed up will surely be filled before to long. I am much more concerned about gaining Hasbro as a competitor then I am about losing them as a customer. Hasbro wouldn't have bought Tiger unless they thought they could do something with it(ie Star Wars). I guess we will know in a year or so. Jon Bird

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