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

To: Jonathan Bird who wrote (2560)	2/12/1998 10:41:00 PM
From: mod	Read Replies (1) \| Respond to of 7111

Jonathan, I agree that Radica's OEM business with Hasbro is in jeopardy. It would now be like Hasbro using Mattel to design and manufacture a line of toys for them. Now, the good news is the margins are low on the Hasbro OEM line (ASP=$4.64) versus the Sports games (ASP=$11.13). So if Radica can make (and sell!) more of their higher-margin games, the loss of the Hasbro business will not have much, if any, negative effect. Another concern, if you believe Radica will lose the Hasbro OEM business eventually, is how much of the factory expansion was planned to be used for Hasbro? Hasbro accounted for fully 28% of the units manufactured last year (though only 18% of the revenue). Radica may end up with more factory than they need, absent the Hasbro business. Factory space in Shenzhen is cheap, so this may not be a big issue, though. Dennis

To: Jonathan Bird who wrote (2560)	2/12/1998 10:43:00 PM
From: larry watson	Respond to of 7111

Jonathan - too soon to say what actual affect of has/tiger will be. Can say that there does seem to be at least a short-term perception of a problem. But perception eventually yields to reality. Can also say . . . - present tiger lineup is not competative with Radica's best products. First-hand reports bear this out. - probably too late for has/tiger to do much in way of interesting new stuff in 98, though cheaper knockoffs of Radica may be possible. - loss of odm work was inevitable anyway as Radica grows to become a major playor since they can make more with their own good ideas - Radica is not wondering what to do with extra capacity should it lose odm (my bet) - hedge - David's "I wish!!!" comment may show some concern larry