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LeapFrog narrows losses - ToyNews

LeapFrog narrows losses

Financial results meet the firm?s expectations.
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LeapFrog posted a fourth quarter net loss of $32.6 million, compared with a $46 million net loss for the same period one year ago.

Similarly, it narrowed its full-year net loss from $145.1 million in 2006 to 101.3 million in 2007.

Net sales for the last quarter reached $181.3 million, a slight dip on 2006 efforts. Full-year net sales amounted to $442.3 million, almost 12 per cent lower than $502.3 million in 2006. The firm attributed the drop to lower sales of its legacy products.

Gross profit increased by more than 20 per cent to $67.5 million for the final quarter and improved to $173.3 million for the full year 2007, compared with $147 million in 2006.

Full year operating expenses slightly increased to $274.5 million, with higher spending on selling, general and administrative expenses and research and development expenses related to new products.

Jeffrey Katz, president and CEO said: “Our results for 2007 met our expectations as weak sales of legacy products were only partly offset by seals of new products launched in they years. In addition, we invested in preparation for the launch of a wide range of new products that will begin shipping this summer. All of this led to a substantial loss for the year, albeit a much lower loss than last year.

“Looking ahead to 2008, LeapFrog has an outstanding lineup of new offerings in each of its major age-range categories. We are particularly enthused about the new Tag reading system, our first new reading platform since our LeapPad system was introduced, by the expansion of our successful gaming line with the Leapster 2 and Didj handhelds and by the strongest content licenses we have launched in several years, which will include licenses for Lucasfilm’s Star Wars, among others.”

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