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

To: mod who wrote (2213)	1/26/1998 7:52:00 PM
From: j rector	Respond to of 7111

Dennis, I think that most of the hand-held casino theme was written down to 0, so any sales of these is gravy now. I guess that since ASP should continue to rise in '98 that margins should also rise. I don't think there is a big difference in the cost of sales between the different lines.

To: mod who wrote (2213)	1/26/1998 8:54:00 PM
From: Gary105	Read Replies (1) \| Respond to of 7111

Dennis, excellent job on ASPs! Re. casino line I raised question about dramatic rationalization of it. David responded that many of the models being sold are inventory. I also think theres some pride of ownership in casino line as it was their starting point. But the company is astute to know which product are bringing in profits. Gary

To: mod who wrote (2213)	1/26/1998 10:32:00 PM
From: Jay Tice	Respond to of 7111

Dennis, thanks for the effort, it is much appreciated. I agree that it would be unfortunate to fill production capacity with casino line if it is needed elsewhere, but I think that Radica may have under estimated how popular their sports line would be. I also wonder if continued presence in casino games is strategic in the sense that it keeps pressure on MGA, which is another maker of handheld games and a direct competitor. It was posted here some time ago that MGA was having financial problems. I don't know to what extent or if this is even true, but their shelf space has appeared to have dwindled in past 6 months and it doesn't look like their Star Wars line is exactly flying off the shelves. From what I have seen MGA is the only real competitor in casino theme, so if they fail you may see an increase in sales and margins on not only casino but other lines as well. As to how much I wouldn't even venture a guess. They may not even be much of a factor in this market. Anyways, like I said, this is just me wondering about things and tossing out points for discussion while I watch the snow fall and wait for the price to rise. Thanks again. Jay