LeapFrog 2003 Annual Report Download - page 18

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Financial Information about Geographic Areas
Our International segment represented 14% of our total consolidated net sales in 2003. For the year ended
December 31, 2003, 2002 and 2001, net sales in dollars and as a percentage of our International segment net
sales were as follows:
Year Ended
December 31,
%ofTotal
International
2003 2002 2001 2003 2002 2001
Europe .............................. $48,946 $25,258 $ 9,696 51% 47% 59%
North America (excluding U.S.) .......... 31,197 13,441 4,219 32% 25% 26%
Asia & Australia ...................... 16,424 14,887 2,407 17% 28% 15%
Total International ................... $96,567 $53,586 $16,322 100% 100% 100%
(1) In thousands
No individual country within our International segment exceeded 10% of consolidated net sales during 2003.
Our long-lived assets are primarily comprised of net fixed assets and net intangibles. In 2003, approximately
3% of our long-lived assets were located outside of the United States. For the year ended December 31, 2003,
2002 and 2001, long-lived assets in dollars and as a percentage of total long-lived assets were as follows:
Year Ended
December 31,
%ofTotal
Long-Lived Assets
2003 2002 2001 2003 2002 2001
United States ......................... $45,420 $48,364 $42,057 97% 99% 99%
Asia ................................ 1,568 258 167 3% 1% 1%
Europe .............................. 274 159 83 0% 0% 0%
Total Long-Lived Assets ............... $46,988 $48,622 $42,224 100% 100% 100%
(1) In thousands
Research and Development
Hardware and Software Development
To develop our products and content, we have assembled a team of technologists with backgrounds in a
wide variety of fields including education, child development, hardware engineering, software development,
video games and toys. We have developed internally each of our current platforms and stand-alone products,
although we use licensed technology if it is advantageous to do so. For example, we use a version of
Macromedia’s Flash player in our Leapster platform.
We have successfully developed proprietary technologies that we use across a number of products in the
markets we serve. We have made innovations in the areas of touch detection technology, speech compression,
music synthesis and content generation. By combining technology developments in mixed signal application-
specific integrated circuits, or ASICs, we have been able to add features at comparatively low cost.
We have built internal expertise in hardware design, hardware synthesis, mixed signal custom ASIC design,
real-time embedded systems, software design, tools for packaging and compiling product content and mechanical
engineering. The research and development team participates in all phases of the product development process
from concept through manufacturing launch.
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