LEAPFROG: Improved second quarter results announced

Higher sales and gross margin and lower operating expenses spell improved results for Leapfrog.
Author:
Publish date:
Social count:
0
5_Pocoyo.jpg

LeapFrog has reported net sales of $68.3million for the second quarter of 2008 compared with $56million for the same period in 2007, an increase of 22 per cent.

Sales in the U.S jumped from $31.9million in 2007 to $50million this year after a series of new products were launched throughout the period, including Tag and Leapster 2.

International sales were down to $12.3million compared with $13.9 year-on-year. Sales for this sector do not reflect product launches, however, and are expected to rise as new stock is added to these markets throughout the second half of the year.

Gross profit improved to $26.9million in the second quarter, compared with $20.3million in the same period last year. Gross margin was also increased to 39.3 per cent compared with 36.2 per cent year-on-year, reflecting new higher-margin product sales and reduced discounts.

Operating expenses were reduced by 3.3 per cent to $49million, driven by previously implemented headcount reductions.

Jeffrey G Katz, president and chief executive officer of LeapFrog said: “We completed a very important milestone in the second quarter with the on-time launch of our new Tag Reading System in June and we also launched our two new web-connected educational gaming systems, Leapster2 and Didj, in early July.”

He continued: “That said, the second half of the year will be much more important with respect to sell-through of these products, particularly given the seemingly endless bad economic news impacting consumers.”

LeapFrog reiterated its current expectations for 2008, with net sales forecast to from at an annual percentage rate in the mid-to-high teems and the gross margin is expected to continue to improve.

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.