LeapFrog 2002 Annual Report Download - page 36

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Results Of Operations
The following table sets forth selected information concerning our results of operations as a percentage of
net sales for the periods indicated:
Year Ended December 31,
2002 2001 2000
Net Sales ............................................................. 100.0% 100.0% 100.0%
Cost of Sales .......................................................... 48.8 54.0 57.4
GrossProfit .......................................................... 51.2 46.0 42.6
Operating expenses:
Selling, general and administrative .................................... 15.2 17.7 20.8
Research and development ........................................... 10.2 12.2 10.0
Advertising ....................................................... 10.7 9.6 10.2
Depreciation and amortization ........................................ 1.6 1.3 1.5
Total operating expenses ................................................ 37.7 40.8 42.6
Income from operations ................................................. 13.4 5.2 0.1
Interest and other income (expense), net .................................... 0.2 (0.6) (0.5)
Equity losses in investment in affiliate ..................................... — — (1.0)
Income (loss) before provision for income taxes .............................. 13.6 4.6 (1.4)
Provision for income taxes ............................................... 5.4 1.5 —
Netincome(loss) ...................................................... 8.2% 3.1% (1.4)%
Twelve Months Ended December 31, 2002 Compared Twelve Months Ended December 31, 2001
Net Sales
Net sales increased by $217.6 million, or 69%, from $314.2 million in 2001 to $531.8 million in 2002. Our
U.S. Consumer segment’s net sales increased $168.9 million, or 58%, from $289.1 million in 2001 to $458.0
million in 2002. Our Education and Training segment’s net sales increased by $11.3 million, or 129%, from $8.8
million in 2001 to $20.1 million in 2002. Our International segment’s net sales increased by $37.3 million, or
228%, from $16.3 million in 2001 to $53.6 million in 2002.
Net sales for each segment and its percentage of total company net sales were as follows:
Year Ended December 31,
2002 2001
Segment $(1)
% of Total
Company
Sales $(1)
% of Total
Company
Sales
U.S.Consumer............................................. $458.0 86% $289.1 92%
Education and Training ...................................... 20.1 4% 8.8 3%
International ............................................... 53.6 10% 16.3 5%
TotalCompany ............................................ $531.8 100% $314.2 100%
(1) In millions.
Our U.S. Consumer segment comprised 86% of total company net sales for the twelve months ended
December 31, 2002 and accounted for 78% of the increase in total company net sales from 2001 to 2002.
Platform net sales in our U.S. Consumer segment increased 38%, from $149.8 million in 2001 to $207.1 million
in 2002. Platform sales, as a percentage of total U.S. Consumer sales, were 45% and 52% in 2002 and 2001,
31