LeapFrog 2005 Annual Report Download - page 3

to win three awards at the 2006 Toy Industry Association Awards Ceremony – 2005’s Most Innovative Toy of the
Year, 2005’s Best Educational Toy, and the overall 2005 Toy of the Year!
The FLY Pentop Computer was not our only major success this year. In addition, we saw our US screen-based
business more than double. This was due to the introduction of our Leapster L-MAX products and the continued
success of our Leapster handheld platform and software.
Perhaps our greatest accomplishment this year was the creation of a healthy, diverse, balanced product line in our US
business. Previously we were too reliant on a single product line, namely the LeapPad family of products. We now
have three large product categories in addition to the LeapPad family in the United States, and two of those categories
are now larger than our LeapPad family of products. We will continue to bring that vibrant portfolio of products to our
International markets.
2006 and Beyond
In thinking about the future, it is important to also remember that we are, first and foremost, an educational products
company. We remain dedicated to our vision to become the leading brand for quality, technology-based educational
products for school, work and home use, for all ages around the world. We work hard to develop products that solve
education problems, and are typically aligned with state and national educational standards.
This is why Fortune Magazine, in their first “Breakaway Brands” study identified LeapFrog as one of ten “Break-Away
Brands”. This study, conducted by Landor Associates and BrandEconomics, featured the brands that demonstrated the
capacity to “breakaway” from their competitors. In this distinction, we were happy to be in such esteemed group as
Google and Apple iPod.
Our new products for 2006 build on this heritage of engaging, innovative educational products that meet our high
standards. For the first time ever, LeapFrog is implementing global launches of two of our important new products this
year. Because we have exceptionally demanding educational standards, this is not a matter of simply translating
language and packaging, but truly localizing product in a culturally- and pedagogically-appropriate manner. So, these
simultaneous launches represent a great deal of hard work on the part of our content, engineering and marketing
teams, for which we are very proud.
The first of the two products that we will launch globally is the Little Leaps Grow-with-Me learning system. This is an
engaging new platform that leverages DVD screen-based technology to gently, and creatively, introduce the building
blocks of learning to children under three. Early response to this distinctive learning platform has been very positive
and there has been particular enthusiasm regarding the quality of our original content and the interactive play
experience. Consumers around the world will be able to choose American or Queen’s English, Spanish, French or
German language on all Little Leaps software out of the box. The Little Leaps Grow-with-Me learning system will be
available in all of our markets this summer.
We are also introducing the LeapsterTV learning system globally. This new educational game console has chunky
console buttons and an easy-to-use joystick, extending the Leapster brand to three year olds. The new platform works
with the Leapster educational software library, which offers the quality of tutorials, individualized learning paths and rich
content and activities now expected from the Leapster brand. Both the classic Leapster handheld and the LeapsterTV
platforms will be available in our French and Spanish-speaking markets this summer.
For the FLY Pentop Computer, we are adding algebra, creative writing and in-classroom testing to the personalized
homework series. We also have ten new entertaining FLY game products, including a title based on the popular
Sudoku puzzle, to keep “t’weens” having fun, and learning during their free time.