Radica Games Posts Loss For Q4, 2001

While not spectatular, that's an improving picture for the Hong Kong-based developer of handheld electronic games, which last year took in $35.0 million and lost $2.4 million (14 cents per share). For the year, Radica had a net loss of $4.4 million (25 cents per share) on sales of $98.6 million, compared to a net loss of $18.1 million ($1.03 per share) on sales of $106.7 million last year. "Considering the difficult market environment of last fall we are pleased with our results for the quarter. The steady improvement we are showing compared to last year indicates that our strategies to engineer a return to profitability are beginning to bear fruit," said Radica's President and CEO, Pat Feely. "As part of this turnaround strategy we have restructured our operations and organization with the intention of reducing our fixed costs by at least $4 million in 2002." During December of 2001 the Radica board of directors approved a companywide restructuring plan which includes moving some of its Hong Kong operations into China, the closure of the company's San Francisco R&D office as well as other head count reductions in its US, UK and Hong Kong offices.