he firm has been cutting costs to combat a drop in sales and said it still expects a decline for the full year.
"It may be one of the first times in many years, perhaps, ever, that retailers and certainly LeapFrog had so much uncertainty in their demand forecast," chief executive Jeff Katz said.
The company said it was still expecting to have a tough time in the final quarter.
"We are not changing our outlook for the year given the challenging consumer environment and the importance of holiday sales to our business," chief financial officer Bill Chiasson said in a statement.
"For the full year, we still expect a sales decline compared to 2008 and we have scaled the business based on this assumption," Chiasson added.
LeapFrog's net loss narrowed to $12.2m from $20.6m a year ago. Sales fell 27.7 per cent to $49.4m.
For the current third quarter, the firm still expects sales of $100m to $120m, while analysts forecast sales of $117.42m. The company reported sales of $194.6m in the year-ago third quarter.