LeapFrog posts "encouraging" results

Firm experiences a mixed Q3 with weaker sales but improvements in other areas.
Author:
Publish date:
Social count:
0
5_Pocoyo.jpg

LeapFrog has reported net sales of $144 million for the third quarter, down $40 million on the same period last year.

Sales for the US segment dropped by 20 per cent from 138.5 million to $109.5 million; international sales also dropped by almost 24 per cent to $30.2 million.

However, the firm’s net loss improved substantially from almost $50 million for Q3 in 2006 to just $2.8 million for the period which ended September 30th, 2007.

LeapFrog’s operating loss improved by about $12 million to a loss of $3.1 million for the quarter, while its cash and investments totalled almost $98 million.

Gross profit for the firm improved from $49.2 million in 2006 to $60.8 million, despite the drop in sales.

Jeffrey Katz, president and CEO of LeapFrog said Q3 sales were weaker than expected.

“However, we're encouraged by the good results from several of our new products and our Leapster handheld business continues to perform very well. With the launch of our 2008 product line, we expect to see the business grow in 2008 and beyond," Katz said.

Bill Chiasson, chief financial officer for the firm added: "We're positioned well to enter the "Grow" phase of our strategic plan with improved gross margins, a strong cash position, and prudent inventory levels. We expect continued improvements in our business fundamentals over the next 12 months,"

LeapFrog expects its full year 2007 results will include a decrease in revenue between 10 per cent and 15 per cent but a “significant improvement” in gross margin and net loss. The firm also expects to reduce its overall operating expenses. 

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.