The firm expects to report Q4 net sales of about $184 million, and its net loss to be about $0.50 per share.
For the full 2007 year the firm anticipates to report net sales of around $445 million, and net loss to be about $1.59 per share.
It also expects to report a gross margin improvement of approximately 10 per cent.
Jeffrey Katz, president and CEO said: "LeapFrog's sales for the 2007 fourth quarter were about equal to last year, and brought the full year sales to $445 million, a decline of 11 per cent. which was in line with our expectations."
Meanwhile the firm has launched the Didj Custom Gaming System. The hand-held gaming unit allows children to connect and customise game play with their school work. It is due out in the US in summer with an estimate price tag of $89.99.