LeapFrog 2007 Annual Report Download - page 4

1 LeapFrog Annual Report
2007
LeapFrog’s Leapster system continues to sell strongly, and in 2008, we’re expanding our gaming
franchise with the web-connected Leapster2 and Didj handhelds. We’ll be offering the popular Leapster
Classic, the web-connected Leapster2, and the customizable high graphics resolution Didj handheld,
all covering an age range from 4 to 10, across an attractive range of price points. We believe this will
improve our already strong position in a growing and profi table category. And, we expect this position
to be bolstered by the launch of our strongest content licenses in several years. In particular, our
exclusive (in educational gaming) rights to Lucasfi lm’s Star Wars and Indiana Jones will round out an
exceptional array of games and characters from leading entertainment properties.
The LeapFrog Learning Path
Concurrent with our summer product launch, we will introduce what we think is one of the most
innovative product features and sales tools in the educational toys and games arena—the LeapFrog
Learning Path. The LeapFrog Learning Path is an online application that communicates each child’s
progress on his or her “learning journey” to the parent. Parents gain personalized insights into
what their child is learning and how the child is progressing. With its launch, we will connect all of
our major products, align them with our proprietary educational framework and give customers
recommendations for the logical next product purchases to support continued learning.
LeapFrog Learning Path is based upon LeapFrog’s proprietary educational framework developed over
the past twelve years and used in classrooms since 2002. It will let parents “see the learning” and
provide highly relevant and enjoyable new activities for children. We believe the LeapFrog Learning Path
will be valued as important by our consumers and will set us apart from anyone else in the market.
Transitioning to Growth
2008 will be the fi rst year in LeapFrog’s growth phase.
By the end of 2008, LeapFrog will have made the transition from a successful company with a single
rock-star (LeapPad) product in 2003, to a company with a broad portfolio of products designed to
create enthusiasm from our consumers and returns for our shareholders. We feel good about that.
Meanwhile, there are a lot of variables that we will be managing closely along the way. As fellow
shareholders, we can assure you that we are working hard to create value on your behalf, and we
thank you for your ongoing commitment.
Sincerely,
Jeffrey G. Katz
President and Chief Executive Offi cer
LeapFrog Enterprises, Inc.
April 30, 2008
*This letter to shareholders contains forward-looking statements, including statements about future fi nancial results and anticipated product
launches. Please see the special note on forward-looking statements on page i of the enclosed LeapFrog Enterprises, Inc. 2007 Annual Report
on Form 10-K.
Steven B. Fink
Chairman of the Board of Directors
LeapFrog Enterprises, Inc.