LeapFrog 2009 Annual Report Download - page 4

2010 and Beyond
We enter 2010 poised for growth—our product portfolio is excellent, we will launch important innovations in
our platforms and content, the Learning Path connected strategy is already showing results, our cost structure
is dramatically improved, and retail inventories are lean. We believe that we are at the turning point for strong
sales growth and profi tability in 2010.
Interactive Reading—New forms of content will be released for Tag™ and Tag™ Junior. Content will expand
beyond traditional books to include maps of the world and the United States. New types of books will be
introduced, including game and puzzle books. We also expect to o er online books, available through LeapWorld
and as downloadable content. Both Tag and Tag Junior are being redesigned to make them easier to use and will
o er a new enhanced-appeal look, including some versions that will resemble popular characters.
Mobile Learning—We will launch a powerful new mobile learning system that will transform our “Educational
Gaming” business into a business that allows kids to play and learn with the fi rst handheld mobile computer
for kids … called Leapster Explorer™. With its Linux-based operating system, it will be about fi ve times more
powerful than the current Leapster2. It will also have a touch screen, o er video, and serve both as a game
system and a children’s e-Book platform. With this more powerful mobile learning product, we will o er much
richer content including Globe: Earth Adventures which will allow children to explore the world and learn about
places, cultures, and topics far beyond the ABCs and 1-2-3’s of traditional learning products. Leapster Explorer
will be fully integrated with our innovative, online LeapWorld™ playground and serve as a marketplace where
children can acquire new features and applications with points earned during o ine and online play. We believe
this transformation of our business from educational gaming into mobile learning … individual learning across
a vast array of subjects, available anytime, anywhere … will grow our business from its traditional boundaries
just as mobile computing for “grown-ups” has transformed the computer industry.
Learning Toys—Building on the success of My Pal Scout, we will introduce our second connected learning toy,
My Own Leaptop™, which will be a play computer that can be personalized with a child’s name and receive
“emails” from family and friends. New role-play toys will be introduced, such as Fix & Learn Speedy, LeapFrog’s
fi rst ever car role-play product. Popular toy lines such as Learn & Groove® and Fridge Phonics® have also been
updated. New toys appropriate for drug store chains will be introduced and serve to extend the LeapFrog®
brand into new channels.
LeapWorld—We will roll out LeapWorld beyond Leapster2 to Tag and Leapster Explorer. LeapWorld is a
safe, online learning world for kids age four to nine. In LeapWorld, kids play and learn with online games that
reinforce core literacy and math skills as well as introduce new subjects like science, language skills, and social
studies. LeapWorld is di erent from other online play experiences in that it is tightly integrated with LeapFrog’s
family of products.
LeapFrog Learning Path—We expect the number of connected customers to expand from three million today
to between six and seven million in a year.
Retail Distribution—In 2010, we will expand our sales distribution with current and new retail partners,
including bookstores. Online distribution of our products will also continue to increase, both on leapfrog.com
and on our many retail partners’ websites.
As we look ahead, we are enthused about our many opportunities in 2010 and beyond. There are many new
and exciting products in development for 2011 and 2012; we have an innovative and strong product pipeline
that will dramatically enhance the way children learn and play. Today our products o er a personalized learning
journey; tomorrow they will o er a personal learning adventure. Learning is going to expand beyond the ABCs
and 1-2-3’s to include a vast array of subjects such as science, geo-literacy, languages, and social studies.
Platforms will transform from educational gaming to mobile learning, where learning can happen anywhere,
anytime. Our products will o er rich online play and learning experiences that seamlessly integrate with o ine
LeapFrog Annual Report 2009