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ELP Revenue in Last 5 Years
02 03 04 05 06
0
100
500
US$ million
193.7 161.9 130.7
281.1
451.7
200
300
400
VTech Holdings Ltd Annual Report 2006 13
V.Smile Baby
9-36 months V.Smile Pocket
5-9 yrs.
V.Smile
3-7 yrs.
V.Flash
6+ yrs.
North America rose by 101.0% to
US$217.7 million while that from
Europe increased by 34.3% to
US$214.8 million. VTech has thus
further strengthened its leadership
position in its principal European
markets, while gaining market share in
the United States.
In the financial year 2006, the V.Smile
range benefited from its first full year of
sales and its second year in the market.
Sales of the range accounted for a
significant part of the total ELP
revenue. The rising installed base of
consoles and V.Smile Pocket handheld
units generated higher software sales.
V.Smile has successfully established itself
as a product category in its own right –
the educational video game system –
and the Group is committed to
ensuring the longevity of the category
through its further evolution and
expansion. In May 2005, the handheld
unit, V.Smile Pocket was introduced.
During the financial year 2006,
significant developments were
undertaken in accessories, software
and platforms to help drive sales in the
financial year 2007.
In accessories, V.Smile Jammin’ Gym
Class offers a touch sensitive number-
coded mat that connects to the system
to teach children physical exercise,
music, dance and maths in an
entertaining way. V.Smile Art Studio is
another plug in accessory that develops
children’s artistic skills through an
electronic drawing and colouring board.
In software, the V.Smile library will see
10 new Smartridges added to its line-
up by the end of the calendar year
2006, such as Noddy, Backyardigans,
Bert & Ernie, Lil Bratz, Cars, Spider-Man
and Friends II, Batman, Shrek III and
Superman. The software library will
grow to 33 titles in all and we are
negotiating further titles for the future.
For the growing Spanish speaking
population in the United States, VTech
has introduced 12 Spanish Smartridges
that include favourite characters such
as Nemo, Scooby-Doo and Batman.
With both V.Smile Baby and V.Flash, the V.Smile
range thus now encompasses ages from
9 months to pre-teens.