LeapFrog 2006 Annual Report Download - page 104

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LEAPFROG ENTERPRISES, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(In thousands, except per share and percent data)
22. Quarterly Financials — Unaudited
Significant quarterly fluctuations are described in “Item 7. Management’s Discussion and Analysis of
Results of Operations.”
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Year Ended
December 31,
(In thousands, except per share data)
2006
Net sales ................................... $66,548 $ 68,118 $184,718 $182,871 $ 502,255
Cost of sales ................................ 41,759 51,000 135,529 126,933 355,221
Gross profit ................................ 24,789 17,118 49,189 55,938 147,034
Operating expenses:
Selling, general and administrative .......... 32,851 27,989 30,150 40,938 131,928
Research and development ................ 12,440 12,871 14,513 14,651 54,475
Advertising ............................. 6,158 8,445 16,994 43,844 75,441
Depreciation and amortization .............. 2,529 2,418 2,195 2,711 9,853
Total operating expenses ...................... 53,978 51,723 63,852 102,144 271,697
Income (loss) from operations .................. (29,189) (34,605) (14,663) (46,206) (124,663)
Other items ................................. 1,740 924 2,394 1,124 6,182
Income (loss) before provision (benefit) for income
taxes .................................... (27,449) (33,681) (12,269) (45,082) (118,481)
Provision (benefit) for income taxes ............. (3,853) (7,935) 37,472 927 26,611
Net loss .................................... $(23,596) $(25,746) $ (49,741) $ (46,009) $(145,092)
Net loss per common share:
Basic .................................. $ (0.38) $ (0.41) $ (0.79) $ (0.73) $ (2.31)
Diluted ................................ $ (0.38) $ (0.41) $ (0.79) $ (0.73) $ (2.31)
2005
Net sales ................................... $71,859 $ 87,066 $242,820 $248,012 $ 649,757
Cost of sales ................................ 44,087 49,274 134,108 142,652 370,121
Gross profit ................................ 27,772 37,792 108,712 105,360 279,636
Operating expenses:
Selling, general and administrative .......... 33,209 29,013 32,739 31,226 126,187
Research and development ................ 14,739 14,580 13,958 9,063 52,340
Advertising ............................. 6,493 6,949 13,045 43,527 70,014
Depreciation and amortization .............. 2,430 2,361 2,385 2,966 10,142
Total operating expenses ...................... 56,871 52,903 62,127 86,782 258,683
Income (loss) from operations .................. (29,099) (15,111) 46,585 18,578 20,953
Other items ................................. 904 1,238 692 10 2,844
Income (loss) before provision (benefit) for income
taxes .................................... (28,195) (13,873) 47,277 18,588 23,797
Provision (benefit) for income taxes ............. (8,316) (4,092) 14,492 4,213 6,297
Net income (loss) ............................ $(19,879) $ (9,781) $ 32,785 $ 14,375 $ 17,500
Net income (loss) per common share:
Basic .................................. $ (0.32) $ (0.16) $ 0.53 $ 0.23 $ 0.28
Diluted ................................ $ (0.32) $ (0.16) $ 0.52 $ 0.23 $ 0.28
F-32