LeapFrog 1st-qtr loss narrows as revenue climbs but results fall short of analyst estimates

LeapFrog 1Q loss narrows but misses analyst views

EMERYVILLE, Calif. — Educational toy maker LeapFrog Enterprises Inc. said late Monday that its first-quarter loss narrowed as revenue climbed.

For the quarter that ended March 31, LeapFrog’s loss totaled $23.6 million, or 37 cents per share, compared with a loss of $27.1 million, or 43 cents per share, in the year-ago quarter.

Excluding one-time items, LeapFrog’s loss totaled 33 cents per share.

Analysts surveyed by Thomson Reuters expected a loss of 28 cents per share.

Revenue rose 42 percent to $42.4 million, but was still about $1 million lower than what analysts expected.

LeapFrog said sales were solid across its product lines, and that it was helped by lower retail inventory levels at the start of the quarter than in the same period last year.

Sales in its U.S. business rose 47 percent to $32.7 million, while sales in its international business rose 28 percent to $9.8 million.

The company predicted its second-quarter revenue will rise 20 percent to 25 percent; based on revenue of $49.4 million in the second quarter of 2009, this implies an expectation for $59.3 million to $61.8 million in revenue for the current period. The company also expects its loss to rise somewhat, noting that in the second quarter of 2009 its loss of 19 cents per share was helped by a tax benefit of 10 cents per share.

Analysts expect a loss of 20 cents per share on $60.6 million in revenue.

The company said it still expects sales to rise 10 percent to 20 percent for the full year.