Jakks Pacific Shares Slide On 1Q Loss

BY MAE ANDERSON

MALIBU, Calif. (AP) — Jakks Pacific Inc., maker of Hannah Montana and Girl Gourmet toys, on Thursday reported a bigger first-quarter loss than expected, hurt by costs related to several acquisitions and lower revenue.

The toy maker also lowered 2009 guidance and an analyst downgraded the company to "Hold" from "Buy." Shares fell nearly 17 percent.

Loss for the quarter ended March 31 — the seasonally smallest for toy makers — totaled $10.8 million, or 40 cents per share, compared with a year-ago profit of $877,000, or 3 cents per share.

The Malibu, Calif.-based company had warned of a loss of 29 cents to 36 cents per share in February. Analysts polled by Thomson Reuters, on average, expected a loss of 34 cents per share.

Revenue fell 17 percent to $108.7 million from $130.9 million a year ago. Analysts expected revenue of $109.5 million.

Co-Chief Executive Jack Friedman said in a conference call with analysts that results were hurt by weak demand, notably for its World Wrestling Entertainment line, Pokemon action figures and Hannah Montana dolls, as well as some electronic products.