LeapFrog Sales Estimates Below Wall Street View

EMERYVILLE, Calif. (AP) — Educational toy maker LeapFrog Enterprises Inc. on Thursday issued first- and second-quarter revenue forecasts that are well below Wall Street estimates.

LeapFrog also reaffirmed the full-year outlook it had offered March 2, when the company posted a deeper fourth-quarter loss than a year earlier amid slumping sales.

After markets closed Thursday, the company said it expects first-quarter net sales for the three months ended March 31 to range from $26 million to $30 million.

Analysts surveyed by Thomson Reuters expected first-quarter revenue of nearly $43 million, on average.

For the second quarter, LeapFrog expects net sales of $35 million to $45 million. Analysts expected nearly $52.9 million.

LeapFrog had previously warned that sales would fall in the first three quarters of this year as retailers cut inventory in response to the recession.

Jeffrey Katz, LeapFrog's chairman and chief executive, said the company's sales have generally met its expectations so far this year. However, he said "point-of-sale" results at retailers have been "somewhat better than expected given the generally weak economic conditions at retail." Some new products also are selling well, he said.