LeapFrog 2009 Annual Report Download - page 13

Download and view the complete annual report

Please find page 13 of the 2009 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.

Page out of 180

  • 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

years. In 2009 and 2008, Toys “R” Us and Wal-Mart accounted for 13% and 12%, and 10% and 13%
respectively of our International segment’s gross sales. No single customer accounted for 10% or more
of our International segment’s gross sales in 2007.
Product Portfolio
LeapFrog’s product portfolio for both of our business segments includes the following:
Interactive Reading Systems:
• Our Tag reading system, introduced worldwide in 2008 and designed for children ages four to eight, is a
pen-based reading system that leverages the core technology of optical pattern reading hardware and
software. The Tag reading system focuses on fundamental reading skills and offers an extensive library
of 40 interactive software-based books featuring popular licensed characters such as Dr. Seuss’ Cat in
the Hat, Disney Princess and Nickelodeon’s SpongeBob SquarePants, as well as internally-developed
characters and content such as our Learn to Read Series. The Tag reading system is web-enabled and
connects to the Learning Path.
• Our Tag Junior reading system was introduced worldwide in 2009 and leverages the same core
technology as the Tag reading system but is geared toward younger children ages two to four and
intended as an introduction to books and reading. The Tag Junior library includes 12 titles based on both
licensed and internally-developed characters and content including 1-2-3 Dora and ABC Animal
Orchestra.
Educational Gaming Systems:
Our Educational Gaming System products are primarily for children ages four to eight. These products embed
learning skills into action-packed games often featuring well known licensed content.
• The Leapster educational gaming system, Leapster, or classic Leapster, was launched in 2003. The
Leapster platform is a handheld device targeted at four to eight year olds, with a multi-directional
control pad and a touch-screen enabled by a built-in stylus. During 2008 we introduced the next
generation of the Leapster platform, Leapster2. Leapster2 is a web-connected version of Leapster that is
integrated with the Learning Path. Our library of more than 40 Leapster software titles including
licensed titles such as Disney Fairies and Star Wars, as well as our internally developed bestseller Pet
Pals, is compatible with both Leapster and Leapster2.
• We expanded our educational gaming line in 2008 with the introduction of the Didj custom gaming
system, or Didj. The Didj platform is a web-connected handheld device that allows for customization of
curriculum and game play. Didj has higher resolution graphics than the Leapster platform, and is also
integrated with the Learning Path. The Didj software library contains 15 titles, including popular
licensed content, such as Star Wars: the Clone Wars.
• In October 2008, we introduced the Crammer Study and Sound System, or Crammer, a hybrid music
player and study device. Targeted at children eight to twelve years old, Crammer is an electronic study
device featuring custom flash cards, on-board games and free downloadable educational content, all
playable while listening to music.
Learning Toys:
Our learning toys are products that help develop fine motor skills and color, sound and letter recognition for
infants and children through age five. The products are generally more affordable and simpler to localize for
foreign markets than our platform and content suites. Learning toys, because of their low price points and focus
3