LeapFrog 2013 Annual Report Download - page 5

Download and view the complete annual report

Please find page 5 of the 2013 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 163

  • 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

We will continue to invest in expanding our geographic footprint.
During the last four years, net sales of our business outside of the U.S. have more than doubled and
now represent 30 percent of our total net sales. Much of this has come from growth in English-speaking
countries and our recent successful expansion in France. Many countries around the world are focused
on improving education for their children, and we believe that this opens even more opportunities for
LeapFrog. We will invest in capabilities to enter new markets and new languages in 2015 and beyond.
We will make important infrastructure investments that will help us become more efficient and scale
as we grow.
The sophistication of our products and services has increased over the years and so has the complexity
of our business. We need to make certain our infrastructure keeps pace with the much more complex
business requirements. As a result, we are taking steps to strengthen our processes, speed the flow of
information throughout LeapFrog and improve the connection with our consumers.
These are all important strategic investments. Together with our excellent existing product portfolio, they
position us well for continued market leadership and long-term sales, earnings and cash flow growth.
Importantly, these initiatives will support us in our ability to provide incredible educational entertainment
experiences that have a meaningful, positive impact on millions of children. Our products help children get
the best start in life, and this is what inspires us every day.
I would like to conclude by thanking the LeapFrog team for their incredible passion and commitment to our
mission. For nearly 20 years, LeapFrog has been a leader in creating life-changing educational entertainment
experiences for children, and our world-class team has been making this happen. This extraordinary team
comes from a wide range of disciplines, including child development and education experts, platform
designers, content creators, game designers, marketing professionals, systems engineers and more. I would
also like to thank you, our shareholder, for your continued support of LeapFrog and our mission to help
children achieve their potential.
Sincerely,
William B. Chiasson
Chairman
April 21, 2014
This letter to stockholders contains forward-looking statements, including statements about future financial results, anticipated product and
service launches and geographical expansion, and the anticipated effects of current strategic assets and initiatives on our future prospects. Please
see the special note on forward-looking statements on page i of the enclosed LeapFrog Enterprises, Inc. 2013 Annual Report on Form 10-K.
1 Results for LeapPad Ultra based on a 2013 survey conducted by LeapFrog and Scholastic Parent & Child Magazine of 328 U.S. kindergarten teachers who
received LeapPad Ultra tablets and LeapFrog Learning Library content for non-classroom examination through LeapFrog’s LeapPad Ultra Teacher Insights
Study. Results for LeapReader based on a 2013 survey conducted by LeapFrog and Scholastic Parent & Child Magazine of 304 U.S. kindergarten teachers
who received LeapReader learning systems and LeapReader Library content for non-classroom examination through LeapFrog’s LeapReader Teacher
Insights Study.
2 Sources: #1 Selling Kids’ Learning Tablets in the U.S. based on The NPD Group/Retail Tracking Service; Infant/Preschool Electronic Learning and
Electronic Entertainment Subclasses, Dollars, Annual 2013. #1 Selling Learning Game System in the U.S. based on The NPD Group/Retail Tracking
Service; Infant/Preschool Electronic Learning Subclass, Units, Annual 2013. #1 Selling Learn-to-Read System in the U.S. based on The NPD Group/Retail
Tracking Service; Preschool Electronic Learning, Learn-to-Read brands as defined by LeapFrog in Dollars, Annual 2013. #1 Selling Preschool Electronic
Learning Toy in the U.S. based on The NPD Group/Retail Tracking Service; Preschool Electronic Learning Subclass, Dollars and Units, Annual 2013. #1
Selling Learning Content for LeapFrog Explorer Licensed and Non-Licensed Software Assortment based on The NPD Group/Retail Tracking Service;
Preschool Electronic Learning Subclass, Units and Dollars, Annual 2013.
3 Source: The LeapFrog Explorer Licensed Software Assortment secured the #2 position in The NPD Group/Retail Tracking Service’s report of the top 10
best-selling toys of 2013; Dollars, Annual 2013.
LeapFrog Annual Report 2013