Leapfrog doubles Q3 profit

Strong Leapster Explorer sales and new product introductions boost sales and profit.
Author:
Publish date:
Social count:
0
29_Leapfrog logo 300.jpg

Leapfrog has announced its financial results for the third quarter ended September 30th, 2010.

Net sales for the quarter were $138 million, up 23 per cent from $111.9 million for the same quarter a year ago.

The firm says that strong Leapster Explorer sales, continued strength in learning toys aided by the introduction of new products, including My Own Leaptop, and broader retail distribution, drove the sales growth.

Net sales from the US segment for the quarter were $110.8 million, up 23 per cent, compared to $89.9 million a year ago.

Net sales from the international segment were $27.2 million for the quarter, up 23 per cent compared to $22.1 million a year ago, and were unaffected by changes in foreign currency exchange rates.

Income from operations for the quarter was $16.2 million, an improvement of $7.2 million, or 79 per cent, compared to $9.1 million a year ago.

Bill Chiasson, chief executive officer, commented: "We have good momentum as we head into the critical holiday season. Globally, our point-of-sale results are strong, aided by the recent introduction of the highly innovative Leapster Explorer Mobile Learning System, as well as the continued growth of the Tag Reading System.

"Additionally, we continue to grow our Learning Path ecosystem, which now has about four million connected customers, to create unique and personalized communications. This is up from approximately three million connected consumers as we entered the year.

"As a result, we are poised to deliver strong sales growth for the year, as well as improved profitability."

The results for the third quarter have led the firm to reaffirm its full year 2010 guidance. Leapfrog expects net sales to increase 15 to 20 per cent compared to 2009; gross margin to be between 41 and 43 per cent; and net income per share to be between 20 and 30 cents compared to a net loss per share of four cents in 2009.

"Our third quarter sales growth reflects the breadth of our product portfolio and continued momentum of the Leapster Explorer platform," said Mark Etnyre, chief financial officer.

"The sales growth, combined with our ongoing cost discipline, contributed to the significant earnings per share improvement."

Related

Featured Jobs

Vivid Job Logo 620 x 349

Digital Marketing Executive - Toys & Games

Vivid is Britain’s biggest toy company and the 20 largest in the world. With offices across the globe, they sell an amazing portfolio of toys and games to over 60 countries. Vivid is best known for its association with blockbuster brands and is very excited about future opportunities around the world.

Liberty

UK Sales Agents

Liberty House Toys have been appointed as the exclusive UK distributor for the BiOBUDDi brand, and we are pleased to introduce this new unique, innovative and exciting range of 100% environmentally-friendly toy building blocks. We are seeking experienced sales agents with existing network in the toy retail market.

Gameplan Job Logo 620 x 349

Head of Product Development & Marketing

Our client is a privately owned French toy and games manufacturer which sells through distributors in forty countries. The company develops and sells innovative electronic interactive toys and games for the educational and gaming markets, and also takes suitable licenses. To progress its successful business development a Head of Product Development & Marketing is to to recruited.

HIT Entertainment Job Logo 620 x 349

Licensing Systems Administrator

The Contract System Coordinator is a newly created role to support the deal term entry process into Mattel’s new Contract Management System for its Licensing business. The role will support the Business Teams at the Deal & Amendment phase of the contracting process and act in conjunction with the System Administration team.