LeapFrog raises 2012 sales expectations

Company ups full-year guidance following strong third quarter results.
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LeapFrog has raised its net sales expectations for 2012 by between $80 million and $95 million.

The manufacturer of the popular LeapPad 2 kids' tablet now expects full year net sales to be between $535 million and $550 million in 2012, a rise of around 20 per cent compared to $455 million in 2011.

The raised expectation comes after LeapFrog posted strong results for its Q3 2012 period. Consolidated net sales during the period reached $193.1 million, up 28 per cent year-on-year. Income from operations was $36.9 million, up 48 per cent.

"We have good momentum heading into the holidays," said LeapFrog CFO Ray Arthur.

"Given the strength of our third quarter results, retail point-of-sale trends and inventory position, we are raising our full year 2012 guidance.

"Our guidance is based on our best view as of today, but keep in mind that our full year 2012 results will be highly dependent on the economy and consumer sales during the holiday season.

"In addition, please note that we expect our advertising expenditures to increase by approximately 20 per cent to 25 per cent in the fourth quarter compared to a year ago, as we concentrate our advertising during the key holiday weeks when consumers are shopping for gifts. 

"Our results for the year will ultimately depend on holiday sell-through of our products."

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