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

To: Billiam57 who wrote (6794)	5/10/1999 7:32:00 AM
From: Kip518	Respond to of 7111

PRwire text Radica Games Limited Reports First Quarter Results HONG KONG, May 10 /PRNewswire/ -- Radica Games Limited (Nasdaq: RADA) reported today an after tax profit of $3.2 million for the first quarter ended March 31, 1999 or $0.16 per fully diluted share versus $8.8 million or $0.41 per fully diluted share for the same period last year. Total revenues for the first quarter ended March 31, 1999 were $17.9 million, compared to $28 million for the same period in 1998. "1999 represents a return to normal seasonality patterns for Radica. Radica's results during the first and second quarters of 1998 were unusually strong due to timing of key product introductions last year," said Pat Feely, Chief Executive Officer. The gross profit for the first quarter decreased to $8.8 million from $15.8 million in the same period of fiscal 1998 and the gross margin decreased to 49% from 56.6% for the same period last year. The decrease in gross margin for the quarter was the result of lower pricing for the Hasbro Group as part of a new long-term contract previously announced between the two companies, together with the effect of licenses paid for use in NASCAR(R) Racer and sales of lower price point items such as Sport Bass Fishin'(TM), Pocket Solitaire(TM), Pocket Checkers(TM) and Pocket Tic Tac Toe(TM). Operating income for the first quarter ended March 31, 1999 decreased to $2.8 million from $8.3 million for the same period last year. Operating expenses decreased to $6 million in the first quarter ended March 31, 1999 from $7.5 million in the same period in 1998, due to a decrease in variable sales related costs offset by research and development, amortization of intangible assets with regards Girl Tech(R), and increased salaries due to certain management additions. The operating margin was 15.4% during the quarter compared to 29.7% during the same period last year. Between September 22, 1998 and April 14, 1999, the Company repurchased one million shares at an average price of $11.98 completing the third million share repurchase plan previously announced on September 22, 1998. Of this one million shares, 334,800 shares were repurchased during the quarter ended March 31, 1999 at an average price of $13.43. On April 12, 1999 the Company announced the approval by the Board of Directors of an additional one million-share repurchase plan. "We are very pleased with the retail sales rates of several of our new 1999 products such as Buckmaster(R) Deer Huntin'(TM), the Girl Tech(R) Password Journal(TM), and Sport Bass Fishin'(TM). We look forward to the introduction of a strong lineup of new products during the rest of the year including our recently announced Tiger Woods Ultimate Golf(TM)," said Feely. The foregoing discussion contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from projected results. Forward-looking statements include statements about efforts to attract or prospects for additional or increased business, new product introductions, and other statements of a non-historical nature. Actual results may differ from projected results due to various Risk Factors, including Risks of Manufacturing in China, Dependence on Product Appeal and New Product Introductions, and Dependence on Major Customers, as set forth in the Company's Annual Report on Form 20-F for the fiscal year ended October 31, 1998, as filed with the Securities and Exchange Commission. See "Item 1. Description of Business -- Risk Factors" in such report on Form 20-F. Radica Games Limited (Radica) is a Bermuda company headquartered in Hong Kong (Nasdaq: RADA). Radica is a leading developer, manufacturer, and distributor of electronic handheld and table top games. Radica has subsidiaries in the U.S.A., Canada, and the U.K., and a factory in Dongguan, Southern China. More information about Radica can be found on the Internet at "www.radicagames.com" and about Girl Tech at "www.girltech.com."