LeapFrog 2007 Annual Report Download - page 44
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Sales of products that comprised 10% or more of LeapFrog’s net sales in 2007 or 2006 were as follows:
Net Sales % of Total
Year Ended
December 31, Change
Year Ended
December 31,
Consolidated 2007(1) 2006(1) $(1) % 2007 2006
Leapster (2) ....................................... $161.0 $177.9 $(16.9) (9)% 36% 35%
All other products .................................. 281.3 324.4 (43.1) (13) 64 65
Total Net Sales ................................ $442.3 $502.3 $(60.0) (12)%100% 100%
(1) In millions
(2) Includes sales of platform hardware, software and accessories for the Leapster, Leapster TV and Leapster
L-MAX product lines
Based on management’s current projections of the sales of new products, sales are expected to grow
significantly in 2008.
Segment Performance:
U.S. Consumer
Our U.S. Consumer segment’s net sales decreased by $37.8 million, or 11%, from $350.7 million in 2006 to
$312.9 million in 2007. In our U.S. Consumer segment, net sales of hardware, software and stand-alone products
in dollars and as a percentage of the segment’s total net sales were as follows:
U.S. Consumer Net Sales % of Total
Year Ended
December 31, Change
Year Ended
December 31,
Product Technology 2007(1) 2006(1) $(1) % 2007 2006
Platform Hardware ................................. $111.6 $123.8 $(12.2) (10)% 36% 35%
Software ......................................... 94.8 105.1 (10.3) (10)% 30% 30%
Stand-alone ....................................... 106.5 121.8 (15.3) (13)% 34% 35%
Total U.S. Consumer Net Sales ...................... $312.9 $350.7 $(37.8) (11)% 100% 100%
(1) In millions
Retiring products drove the entire decline in sales for the year, as the decline in sales of products that we are
phasing out more than offset the increase in sales of continuing products. Specifically:
• The largest declines were experienced in the Little Leaps, Little Touch, Leapster TV, Leapster L-MAX,
LeapPad and My First LeapPad product lines.
• Excluding the impact of products being phased out, sales would have increased 6% for the year. Sales of
our classic Leapster hardware and software were particularly strong.
• We also experienced relatively robust sales growth on LeapFrog.com, which increased 74% in 2007
versus the prior year. We will seek to continue to improve our online sales principally by improving our
sales efforts and methodologies at the web stores of our major retail customers, our e-tailers, and also at
our own online web store.
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