LeapFrog 2010 Annual Report Download - page 5

LeapSchool™ for the Leapster Explorer and LeapPad Explorer platforms. LeapSchool will feature a diverse
set of student characters with a wide variety of interests, who empower boys and girls to learn about many
subjects at the “coolest school in the world.”
• Digital Content—We believe that there is a signifi cant opportunity in downloadable “snackable” digital
content. We have experienced this with our Leaplet® app business and see the opportunity beyond
our platforms, specifi cally in the smart phone and tablet platforms. We are therefore expanding our
downloadable learning apps library from 26 apps in 2010 to approximately 80 apps in 2011. While the
majority of these apps will initially be for LeapFrog’s platforms, some of the apps will be designed for smart
phones and tablets and will be integrated with our Learning Path ecosystem. We believe that LeapFrog has
a strong advantage in the digital app world given our leading brand, educational curriculum and credibility,
and Learning Path ecosystem.
• Learning Path Ecosystem 2.0—We will continue to invest in our core strategic asset, the Learning Path, and
further develop our global capabilities to connect with parents as well as extended family and friends. Many
of our products will be developed to enable the millions of parents connected to our Learning Path system to
share their children’s creations and breakthrough learning moments through social media, further building
our brand reach. We will also introduce more products intended to drive connections to our Learning Path,
such as the stand-alone learning toy My Own Story Time Pad, which provides a personalized preschool
e-reader experience fi lled with learning apps; the new tablet LeapPad Explorer; and new content, including
more downloadable apps, for our interactive reading and mobile learning lines.
Our initiatives will be driven by LeapFrog’s strong and proven team, which is now led by John Barbour, who
joined us in March 2011 as our new chief executive o cer. John has a proven track record of success in building
global consumer and Internet businesses for traditional retail, online retailing, mobile gaming, and branded
toy companies. John brings in-depth experience in successfully navigating through the fast changing retail,
consumer product, and technology environments. We believe John’s leadership and knowledge will take
LeapFrog to the next level.
We are excited about our future opportunities and believe LeapFrog will continue to provide many more fun,
life-changing learning solutions for children while also creating great value for our business partners and
shareholders.
Sincerely,
William B. Chiasson
Chairman
April 20, 2011
This letter to stockholders contains forward-looking statements, including statements about future fi nancial results, anticipated product launches, and the
anticipated e ects of current strategies on our business. Please see the special note on forward-looking statements on page i of the enclosed LeapFrog
Enterprises, Inc. 2010 Annual Report on Form 10-K.
LEAPFROG, the LeapFrog logo, the Learning Path logo, TAG, the Tag logo, the Tag Junior logo, LEAPSTER, the Leapster2 logo, LEAPSTER EXPLORER, the
Leapster Explorer logo, LEAPPAD EXPLORER, the LeapPad Explorer logo, LEAPSCHOOL, the LeapSchool logo, MY OWN LEAPTOP, LEAPLET and MR. PENCIL,
are some of the trademarks or registered trademarks of LeapFrog Enterprises, Inc. This letter contains these and other trademarks and service marks of
LeapFrog Enterprises, Inc.
Description of Retail Point-of-Sale Dollars
Retail point-of-sale, or POS, dollars is a non-audited operating metric that represents a measure of U.S. retailers’ sales of LeapFrog products to consumers.
Retail point-of-sale dollars di ers signifi cantly from LeapFrog’s reported net sales, which refl ect all products sold by LeapFrog to its retailer customers in all
markets and also includes other sources of revenue. The point-of-sale data, based on retail prices, is provided to LeapFrog by retailers and also includes sales
through online retailers and our online retail store at LeapFrog.com. LeapFrog believes this represents approximately 95% of our U.S. retailers’ dollar sales of
LeapFrog products to consumers, based on historical shipments by us to such retailers. LeapFrog management uses point-of-sale data to evaluate the retail
channel sales environment and develop net sales forecasts. Results for full year retail point-of-sale dollars are for the 52-weeks ended January 1, 2011 and the
52-weeks ended January 2, 2010.
LeapFrog Annual Report 2010