LeapFrog 2005 Annual Report Download - page 41

Twelve Months Ended December 31, 2005 Compared To Twelve Months Ended December 31, 2004
Net Sales
Net sales increased by $9.5 million, or 1.5%, from $640.3 million in 2004 to $649.8 million in 2005. On a
constant currency basis, which assumes that foreign currency exchange rates were the same in 2005 as 2004, total
company net sales increased 1.5% from 2004 to 2005.
Net sales for each segment and its percentage of total company net sales were as follows:
Year Ended December 31,
2005 2004 Change
Segment $(1)
%of
Total
Company
Net Sales $(1)
%of
Total
Company
Net Sales $(1) %
U.S. Consumer ................... $478.3 74% $431.9 67% $ 46.4 11%
International ..................... 131.2 20% 153.2 24% (22.0) (14)%
Education and Training ............. 40.3 6% 55.2 9% (14.9) (27)%
Total Company .................. $649.8 100% $640.3 100% $ 9.5 1.5%
(1) In millions.
U.S. Consumer. Our U.S. Consumer segment’s net sales increased by $46.4 million, or 11%, from $431.9
million in 2004 to $478.3 million in 2005. In our U.S. Consumer segment, net sales of platform, software and
stand-alone products in dollars and as a percentage of the segment’s total net sales were as follows:
Net Sales % of Total
Year Ended
December 31, Change
Year Ended
December 31,
2005(1) 2004(1) $(1) %2005 2004
Platform .................................. $196.2 $173.7 $22.5 13.1% 41.0% 40.2%
Software ................................. 145.7 128.9 16.8 13.1% 30.5% 29.9%
Stand-alone ............................... 136.4 129.3 7.1 5.6% 28.5% 29.9%
Total U.S. Consumer Net Sales .............. $478.3 $431.9 $46.4 10.8% 100% 100%
(1) In millions.
The net sales increase in this segment year-over-year was primarily a result of the following factors:
• Introduction of our FLY Pentop Computer and related software and accessories, which began shipping
to retail customers in the third quarter of 2005 for our October 2005 product launch.
• Introduction of our Leapster L-MAX system in the third quarter which added to the increased demand
for our screen-based platforms and related software products. In total sales of our screen-based products
more than doubled.
• Higher demand for our stand-alone products, specifically for our Fridge Phonics and Alphabet Pal
products.
These factors were partially offset by continued decline in sales of our LeapPad family of products.
International. Our International segment’s net sales decreased by $22.0 million, or 14 %, from $153.2
million in 2004 to $131.2 million in 2005. On a constant currency basis, net sales decreased 14% from 2004 to
2005.
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