LeapFrog 2007 Annual Report Download - page 58

The following table sets forth unaudited quarterly statements of operations information for 2007 and 2006.
The unaudited quarterly information includes all normal recurring adjustments that management considers
necessary for a fair presentation of the information shown. Given the low sales volumes in the first half of the
calendar year, and the relatively fixed nature of our operating expenses, our financial results have been stronger
in our third and fourth quarters relative to our first and second quarters. We expect that we will continue to incur
losses during the first and second quarters of each year for the foreseeable future. Because of the seasonality of
our business and other factors, results for any interim period are not necessarily indicative of the results that may
be achieved for the full fiscal year.
For the Quarter Ended Year Ended
December 312007 March 31 June 30 September 30 December 31
(In Thousands, Except Per Share Amounts)
Net sales ...................................... $60,924 $ 55,995 $144,045 $181,307 $ 442,271
Cost of sales ................................... 36,221 35,711 83,272 113,761 268,965
Gross profit ................................... 24,703 20,284 60,773 67,546 173,306
Operating expenses:
Selling, general and administrative ............. 32,428 29,909 41,896 37,395 141,628
Research and development ................... 14,468 14,032 14,242 16,629 59,371
Advertising ................................ 5,583 4,223 12,804 41,403 64,013
Depreciation and amortization ................. 2,419 2,510 2,386 2,149 9,464
Total operating expenses ......................... 54,898 50,674 71,328 97,576 274,476
Income (loss) from operations ..................... (30,195) (30,390) (10,555) (30,030) (101,170)
Other items .................................... 2,006 2,776 887 (2,091) 3,578
Income (loss) before provision (benefit) for income
taxes ....................................... (28,189) (27,614) (9,668) (32,121) (97,592)
Provision (benefit) for income taxes ................ 2,239 414 637 433 3,723
Net income (loss) ............................... $(30,428) $(28,028) $ (10,305) $ (32,554) $(101,315)
Net income (loss) per common share:
Basic ..................................... $ (0.48) $ (0.44) $ (0.16) $ (0.51) $ (1.60)
Diluted ................................... $ (0.48) $ (0.44) $ (0.16) $ (0.51) $ (1.60)
Market price range common stock
High ..................................... $ 11.56 $ 11.48 $ 10.82 $ 9.33 $ 11.56
Low ..................................... $ 9.15 $ 9.90 $ 6.80 $ 5.80 $ 5.80
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 income (loss) ............................... $(23,596) $(25,746) $ (49,741) $ (46,009) $(145,092)
Net income (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)
Market price range common stock
High ..................................... $ 12.72 $ 10.81 $ 10.75 $ 9.91 $ 12.72
Low ..................................... $ 10.48 $ 9.35 $ 6.71 $ 7.58 $ 6.71
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