Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Radica Games (RADA) -- Ignore unavailable to you. Want to Upgrade?

To: mod who wrote (2179)	1/24/1998 3:46:00 PM
From: Hardrocker	Read Replies (1) \| Respond to of 7111

Dennis, I'm new to the Radica story, admittedly followed Skip and TM here. Imitation, as they say, is the sincerest form of flattery. :o) While the toy industry seems filled with "one trick pony" fad stories, Radica seems to be very forward thinking in their game development. What I see is a company who first seeks widely popular pastimes (e.g., fishing) and then develops exciting games around that theme. The first step may not be easy, but it doesn't take rocket science. You or I could probably make a stab at it. But the second step's the devil. Turning everyday pastimes into interesting games? That looks extremely difficult to me. Oh, yes, then make the whole thing affordable to the average consumer, market it, develop distribution channels, etc. Radica has apparently mastered these daunting challenges. If Fishin' sales may happen to fall under the "fad" category, and I wouldn't bet that it will, then there seem to be other great games coming down the road which may prove to be equally successful. Maybe more so. When I read about the VMS technology being applied to upcoming games like Trail Burner and Inline Alley, it smells like more hits coming up. Look at the popularity of those two pastimes! I'm a believer.... Hardrocker ps Almost forgot. I see a few references on this thread to upcoming TV ads. Is that true, and when? I don't recall ever having seen a Radica commercial on TV, so I assume that commercials have either been very localized or nonexistent. If this is the beginning of a first time national campaign, then we may really be off to the races!

To: mod who wrote (2179)	1/25/1998 2:09:00 PM
From: j rector	Read Replies (2) \| Respond to of 7111

Dennis, Great questions. I don't know what would constitute market penetration/saturation in hand-held fishing games. RADAF obviously has the capacity to produce 10MM Bass Fishing Games next year. Right now it also looks like the demand exists to outstrip 97 sales. I wonder what would be market saturation #'s. Does anybody know how many fishermen there are in the US & Canada? Just taking a wild guess I would say that the total market for the games is about 25MM. Assuming that they sold about 3MM last year, they still have a ways to go before the market is saturated--perhaps 2-3 years. Obviously for longer-term sustained growth they'll need other products to catch on strong. I would guess that the market for each of bowling, mountain biking, and NASCAR is probably comparable to the fishing market. All they need is one of these three to hit and they're looking at sustaining the revenue growth for 3 years instead of 2. If 2 hit, even merrier. I'm sure they've tested consumer response with these products. I also think that the addition of new factory space is due to the reception received by these new products. If they were only expecting Bass to grow, I don't think they would have built more manufacturing space. Just my take. j.

To: mod who wrote (2179)	1/25/1998 4:49:00 PM
From: Wayne	Read Replies (1) \| Respond to of 7111

Dennis, Thought I'd toss out a couple considerations to address your very good questions.There is no doubt that the fishin games are a large part of Radicas success in 1997. There were also several other NEW contributions that were added last year and also aided in their year end. The Vision games came out in the second half of the year as well as Deep Sea in the last quarter. Lunker was in the second half and then only in the Monte Carlo line. Other large hits, (covered in the Q4 CC), were the Bowling, Golf, and Solitaire (if my memory is correct). Though Fishin may in a sense be to Radica as Barbie is to Mattel, Radica is not a one item company, as it was in 94-96'. What seems to be the criteria for games that Radica introduces brings some new ingenuity to the industry. Be it a new category, new technology, higher level of quality, as well as, a combination of all. Can Fishin expand 50 - 100% or more in Revenue in 1998? My bet is YES to all three. Consider that Deep Sea did not arrive until late in the 97' year. It's sales were not in the top 10 hand held electronic game and only a short part of the year. Lunker Bass was only placed in the upper end stores in the second half of 97. Again very limited exposure in comparison to original Bass. Lunker is now in the major stores in the clam shell packaging. Another big item in 1998, Bass Junior in the start of the year. My area stores can not keep it stocked, just like all the other fishin' games. Radica is introducing several new games this year and though they may not be the hits the fishing games are, if it takes 3-4 to equal the same success then it is still added success that equates to major accomplishments for the companies product line and bottom line. If NASCAR, Trail Burner equate to Deep Sea, I am very happy. If all 4 vision games turn in revenues equal to Bass or Lunker, you now have the equivalent of six major hits and so on. Can't say for sure but, $100,000,000 in Fishin revenue may not be to far down Radicas list of things to do in 1998. Forgive the long post. Just my take on it all. Your concerns were among my main ones in 1997 and I am very happy with the way Radica has and is now positioned in the market in 1998. Best wishes, Wayne