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LeapFrog Enterprises Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: August 6, 2012 04:27PM

LeapFrog Enterprises Inc. (LF) filed Quarterly Report for the period ended 2012-06-30. Leapfrog Enterprises, Inc. has a market cap of $594.6 million; its shares were traded at around $10.73 with a P/E ratio of 18.4 and P/S ratio of 1.3.



Highlight of Business Operations:

Net sales for the three and six months ended June 30, 2012 increased 31% and 52%, respectively, as compared to the same periods in 2011. The increase for the three month period was largely driven by continued strong demand for LeapPad and strong content sales. The increase for the six month period was largely driven by continued strong demand for LeapPad and associated content, as well as the impact of lower volume and higher quality of beginning retail channel inventory as compared to the prior year. Net sales for the three and six months ended June 30, 2012 included a 1% negative impact from changes in foreign currency exchange rates.

Operating expenses for the three and six months ended June 30, 2012 increased 12% and 13%, respectively, as compared to the same periods of 2011, primarily driven by higher employee compensation expenses and higher advertising expenses to support higher net sales. The increase for the six month period also included an increase in our allowance for doubtful accounts due to an isolated customer credit concern.

Net sales for the three and six months ended June 30, 2012 increased 26% and 55%, respectively, as compared to the same periods in 2011. The increase for the three month period was largely driven by the continued strong customer demand for LeapPad and strong content sales. The increase for the six month period was largely driven by continued strong demand for LeapPad and associated content, as well as the impact of lower volume and higher quality of beginning retail channel inventory as compared to the prior year.

Net sales for the three and six months ended June 30, 2012 increased 46% and 47%, respectively, as compared to the same periods in 2011 largely driven by the continued strong customer demand for LeapPad and strong content sales. Net sales for the three and six months ended June 30, 2012 included a 5% and 4% negative impact from changes in currency exchange rates, respectively.

Cash and cash equivalents totaled $126.9 million and $57.7 million at June 30, 2012 and 2011, respectively. The increase in cash balance was due to an increase in net sales as well as more timely cash collections from our customers. Cash and cash equivalents held by our foreign subsidiaries totaled $19.2 million and $14.3 million at June 30, 2012 and 2011, respectively. We do not intend to repatriate any foreign cash and cash equivalents as it will be used to fund foreign operations. However, if we were to do so, any associated tax liability would be fully offset by our domestic valuation allowance. In line with our investment policy, all cash equivalents were invested in high-grade certificates of deposit and money market funds as of June 30, 2012.

Read the The complete Report



Stocks Discussed: LF,
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