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 (2212)	1/26/1998 7:02:00 PM
From: mod	Read Replies (3) \| Respond to of 7111

Here are a few comments on ASP. First, the sooner Radica ditches the Handheld Casino business, the better as far as I can tell. At $3.43/unit ASP, which is $1.21/unit lower than even the low-margin OEM business, they can't be making much, if anything on this line. I hope they are just selling old inventory and not wasting manufacturing capacity on making any more, unless they can add new products which carry a higher price. Notice the decline in ASP from 1994 to 1996, and the almost $2 jump from 1996 to 1997, though the $7.10 ASP in 1997 is still not as high as $7.80 in 1994. The jump is mostly a combination of the large increase in Sports games, at $11.13/unit, with a little help from the similarly-priced but lower volume Heritage and Action products, combined with a large drop in sales of casino games. Since the OEM business is growing slower than Radica's higher margin products, I would expect ASP to keep rising through 1998, as the low-price OEM products will continue to decline as a percent of overall sales. Dennis