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

To: chaz who wrote (2518)	2/11/1998 6:12:00 PM
From: j rector	Read Replies (3) \| Respond to of 7111

Well we now have estimates of: .35, .38, .46, and .33. I'll stick with Wayne's number--seems very logical and well-thought-out. David reiterated that 300K units were roughly constant from last CC to end of quarter so I think Wayne has it straight there. The only wild card is margins. If there was alot more OEM work in Q1 than Q4, then margins may be lower than the 56% predicted by Wayne. I know that historically there has been more OEM work in Q1 and Q2 than in other Q's so margins may be lower. However, an argument against this is the lack of product in the stores. Wouldnt RADAF prioritize manufacturing the high margin product as opposed to the low margin OEM stuff thereby keeping margins at 56%? David, do OEM agreements come 'off-the-top? In other words, if you are an OEM for HAS, are you required to put out so many units in a Q, and then do you use the excess capacity to produce the higher margin stuff? Or do you have the option to put off OEM work or only produce a minimum amount?