LeapFrog 2011 Annual Report Download - page 5

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entertainment.
But what makes LeapFrog stand apart from others is that we are helping millions of children achieve their
potential every day! To demonstrate what this means, allow me to share a recent comment we received from
a parent:
“My daughter was held back in 1st grade. I was a single mom working nights. We were told she had zero reading
comprehension. I took leave from my job. I was hunting for learning aids and found the Tag Pen. She was reading
in a month, and knew what she was reading.
“She has since exceeded our expectations in school. She was chosen for the school spelling bee and won a
writing award. I am not a teacher at all, so we want to thank you from the bottom of our heart for being the tool
through which my daughter excelled. Thank You.”
In closing, I’d like to recognize the highly engaged and talented employees of LeapFrog. They are committed to
making a real difference in the lives of children every day. Thank you for your continued support on our journey
to help every child achieve their potential.
Sincerely,
William B. Chiasson
Chairman
April 19, 2012
This letter to stockholders contains forward-looking statements, including statements about being well positioned for future financial performance, anticipated
product launches, and the anticipated effects of current strategic assets on our future prospects. Please see the special note on forward-looking statements
on page i of the enclosed LeapFrog Enterprises, Inc. 2011 Annual Report on Form 10-K.
Description of Retail Point-of-Sale Dollars
Retail point-of-sale, or POS, dollars is a non-audited operating metric that represents a measure of U.S. retailers’ sales of LeapFrog products to consumers.
Retail point-of-sale dollars differs significantly from LeapFrog’s reported net sales, which reflect all products sold by LeapFrog to its retailer customers in all
markets and also includes other sources of revenue. The point-of-sale data, based on retail prices, is provided to LeapFrog by retailers and also includes sales
through online retailers and our online retail store at LeapFrog.com. LeapFrog believes this represents approximately 95% of our U.S. retailers’ dollar sales of
LeapFrog products to consumers, based on historical shipments by us to such retailers. LeapFrog management uses point-of-sale data to evaluate the retail
channel sales environment and develop net sales forecasts. Results for retail point-of-sale dollars are for the 52 weeks ended December 31, 2011 and the 52
weeks ended January 1, 2011.
LeapFrog Annual Report 2011