To: Irish who wrote (13487 ) 11/12/2001 8:30:04 AM From: rogermci® Read Replies (1) | Respond to of 19633 Monday November 12, 6:01 am Eastern Time Press Release SOURCE: Radica Games Limited Radica Games Limited Reports Third Quarter Profits Growth HONG KONG, Nov. 12 /PRNewswire/ -- Radica Games Limited (Nasdaq: RADA - news) announced today growth in operating profits of 12.7% to $4.2 million for the third quarter ended September 30, 2001. Net profit for the quarter was $4.1 million or $0.23 per fully diluted share compared to a net profit of $3.9 million or $0.22 per share for the third quarter of 2000, an increase of 6.4%. Net sales for the quarter were $37.2 million compared to $41.2 million for the same period in 2000. Sales were negatively impacted by the September 11th tragedy and the downturn in the economy. In spite of these market conditions sales of both the PlayTV line and Gamester branded video game accessories grew significantly in comparison to last year. Pat Feely, President and CEO said, ``We are pleased to report earnings growth during the current difficult retail and economic environment. This demonstrates the meaningful progress we are making in improving the profitability of our operations. ``In spite of challenging market conditions, retail sales movement has been strong on most of our key products. We are particularly excited about the sales of our recently launched Skannerz line of products which has become our fastest selling product line at retail during the last month. In addition, sales of video game accessories increased 58% over the same period last year. We believe these positive retail results, our improving profit margins and strong balance sheet are all encouraging indicators for the future,'' said Feely. The Company reported that gross margin for the quarter increased to 37.5% from 33.5% in Q3 2000. This resulted from improved margins on all lines and a decrease of closeout product sales due to improved inventory control. Operating profit was $4.2 million, up from $3.7 million in Q3 2000, due to a combination of improved gross margins and reduced operating expenses. Cash held solidly at $21 million compared to $23.1 million on December 31, 2000. In addition, long-term debt declined by $2.7 million from December 31, 2000 with short-term borrowings also dropping by $2.0 million during the period. Receivables declined to $20.2 million from the December 31, 2000 level of $25.9 million and following normal seasonality patterns, inventories increased to $22.4 million from $14.0 million on December 31, 2000. Net book value stands at $3.63 per share with tangible net worth at $3.05 per share. I'll drink to that. Let's see if it breaks to a new high this week. roger