Officials from 'TV game', video game accessory and standalone handheld game maker Radica Games have announced financial results for the company’s financial year, ended December 31st. The results have proven positive in both time frames, with net profits for the year rising by two thirds on 2004’s figures, but the company's Gamester console accessory market proving slow.
Net profits for the quarter stood at $3.5 million, compared to a net loss of $1.6 million at the same time in 2004. Sales for the quarter increased by 5.1 percent to $45.7 million, with the company’s
20Q electronic LCD game proving particularly popular. However, sales of the company's Gamester video games accessories were lower than in 2004, due to the issues surrounding the migration to next generation formats, the company announced.
Net profits for the full year were put at $10.5 million, compared to $3.5 million for the whole of 2004. Excluding goodwill impairment charges relating to the company’s video games accessory business, which is now fully written off of balance sheets, profits would have risen by 133 percent to $16.5 million.
Sales for the year increased by 31.9 percent to $162.8 million, primarily due to growth in the company’s electronic games and youth electronics product lines. Compared to sales in 2004, North American sales for the year grew by 34.1 percent, with European sales increasing by 37.7 percent and other international sales increasing by 37.6 percent.
Pat Feely, Radica's CEO, said, "We were very pleased with our performance this year. First of all, we set an all time record for sales at Radica. Additionally, and most importantly, we delivered on the bottom line with an operating margin, excluding the goodwill impairment charge, of 10 percent in a very difficult cost environment... Finally, our product lines sold through well at retail and this has positioned us for continued growth in 2006."
