LeapFrog 2006 Annual Report Download - page 42
Download and view the complete annual report
Please find page 42 of the 2006 LeapFrog annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32 -
33 -
34 -
35 -
36 -
37 -
38 -
39 -
40 -
41 -
42 -
43 -
44 -
45 -
46 -
47 -
48 -
49 -
50 -
51 -
52 -
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
-
177
-
178
-
179
-
180
-
181
-
182
 |
 |
Twelve Months Ended December 31, 2006 Compared To Twelve Months Ended December 31, 2005
Net Sales
Net sales decreased by $147.5 million, or 23%, from $649.8 million in 2005 to $502.3 million in 2006, on a
reported and on a constant currency basis, which assumes that foreign currency exchange rates were the same in
2006 as 2005.
Net sales for each segment and its percentage of total Company net sales were as follows:
Year Ended December 31,
2006 2005 Change
Segment $(1)
%of
Total
Company
Sales $(1)
%of
Total
Company
Sales $(1) %
U.S. Consumer ................... $350.7 70% $478.3 74% $(127.6) (27)%
International ..................... 114.6 23% 131.2 20% (16.6) (13)%
SchoolHouse ..................... 37.0 7% 40.3 6% (3.3) (8)%
Total Company .................. $502.3 100% $649.8 100% $(147.5) (23)%
(1) In millions.
U.S. Consumer. Our U.S. Consumer segment’s net sales decreased by $127.6 million, or 27%, from $478.3
million in 2005 to $350.7 million in 2006. 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,
2006(1) 2005(1) $(1) %2006 2005
Platform ................................. $123.8 $196.2 $ (72.4) (37)% 35% 41%
Software ................................. 105.1 145.7 (40.6) (28)% 30% 30%
Stand-alone ............................... 121.8 136.4 (14.6) (11)% 35% 29%
Net Sales ................................. $350.7 $478.3 $(127.6) (27)% 100% 100%
(1) In millions.
The net sales decrease in this segment was primarily the result of the following factors:
• 63% decline in sales volume of our LeapPad family of products, which is technologically past its prime.
• Discounts and allowances mainly due to our promotional efforts to reduce retailers’ slow-moving
inventories, increased by $5.0 million in 2006. Specifically, we reported 68% lower sales for our FLY
Pentop Computer business compared to 2005, reflecting promotional and other activities to reduce
existing FLY Pentop inventories in its last selling season. We plan to replace the FLY Pentop Computer
with the FLY Fusion Pentop Computer in 2007.
These factors were partially offset by direct sales at our on-line store of approximately $8.0 million
compared to $3.1 million in 2005. We plan to continue building our web products business. We expect to
continue to improve our online sales principally by improving our sales efforts and methodologies at the web
stores of our major retail customers and at the all-online e-tailers, and also at our own online web store.
35