RADICA GAMES LIMITED
ANNOUNCES PRELIMINARY FIRST QUARTER RESULTS
FOR IMMEDIATE RELEASE CONTACT: PATRICK S. FEELY
APRIL 6, 2000 PRESIDENT & CEO
(LOS ANGELES, CALIFORNIA)
(626) 744 1150
DAVID C.W. HOWELL
PRESIDENT ASIA OPERATIONS
& CFO
(HONG KONG)
(852) 2688 4201
(Hong Kong) Radica (NASDAQ RADA) announced preliminary results for the first
quarter ended March 31, 2000. The Company stated that based on currently
available information, it expects to report sales of approximately $16 million
and a loss in the range of $0.09 to $0.12 per fully diluted share for the
quarter.
Radica stated that the handheld game market segment has been particularly soft
during the first quarter resulting in delays and reductions in retail customer
orders below normal levels at this time of year. The company noted that
according to The NPD Group's TRSTS retail sales tracking service handheld game
sales at retail are currently tracking about 17% below last year.
Pat Feely, Radica's CEO said, "The disappointing sales in the handheld game
category this quarter have been attributed by several of our retail buyers
primarily to the Pokemon phenomenon, which has drained consumer interest and
dollars away from our primary market category. As a result, several of our key
accounts have delayed or reduced their orders for Spring shipment. This comes on
top of the expected year to year decline that we had previously projected in
fishing game sales which were strong in the first quarter of last year. The
combination of these two factors has resulted in a significant decline in
handheld shipments during the first quarter."
"Results in our other business segments including Girl Tech products, LMP's
video game controllers and our ODM manufacturing business which benefited from
the Konami order this quarter are all tracking ahead of last year and have met
our expectations for the quarter. The resulting profits from these segments have
helped offset much of the decline in handhelds experienced this quarter and
speak to the importance of the diversification strategy we have embarked upon
during the last two years," said Feely.
"Since buying decisions for Fall are still pending, we have not been able to
make a full assessment of the impact of this trend on future quarters; however,
given the situation we would encourage caution in estimates being made by our
investors. In the longer term we continue to be optimistic that our aggressive
diversification efforts will lead to growth opportunities for the company in the
future."
The company also announced that it has scheduled a conference call for analysts
and the investor community for 11 AM EDST on Friday, April 7.
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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 a
diverse line of electronic products including handheld and tabletop games,
high-tech toys, video game controllers and peripherals, and Internet enabled
appliances. 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.
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