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VTech Holdings Ltd Annual Report 2008
10
Electronic Learning Products
Our ELP business started in 1980. Since
then, we have been designing innovative
products for children of all ages that have
helped make learning fun.
Lesson One
REVIEW OF OPERATIONS
The ELP business delivered its third consecutive year of record
performance in the  nancial year 2008, with revenue increasing
by 8.0% to US$615.7 million. This is equivalent to 39.7% of
total Group revenue, as compared to 39.0% in the previous
nancial year.
Growth mainly came from Europe, where we maintained our
long-established leadership position in our principal markets,
as revenue grew by 13.5% over the previous  nancial year to
US$296.1 million. Sales in North America also posted gains,
growing 3.5% to US$291.1 million.
Innovative products, supported by increased shelf space, are
the main drivers for this sales expansion. Traditional ELPs led
the way, with strong sales across the board. Sales of Whiz Kid
PC Learning SystemTM (Whiz Kid), a product for preschoolers,
however, were not up to expectation. This notwithstanding,
Whiz Kid’s tremendous value and rich contents have not been
unrecognised by the market and it was named one of “Dr. Toy’s
10 Best High-Tech Products 2007”.
The maturing of the basic V.Smile platform led to an easing o in
sales of both consoles and cartridges. Consequently, contribution
of the V.Smile range to total ELP sales declined to 40.7%,
compared to 51.0% in the previous  nancial year. Nonetheless,
the V.Smile console and cartridges continued to be the top
selling platform items in the electronic preschool category in the
United Kingdom, France and Germany in the calendar year 2007.
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Innovative
Products
We are one of
the pioneers
in electronic
learning products
ELP Revenue in Last 5 Years