LeapFrog Shares Fall On 1st-quarter Loss

NEW YORK (AP) — Shares of LeapFrog Enterprises Inc. fell on Tuesday, after the educational toy maker reported a first-quarter loss that missed Wall Street estimates and revenue fell by nearly half.

Shares fell 36 cents, or 15.7 percent, to $1.94 during morning trading.

The quarterly loss totaled $27.1 million, or 43 cents per share, from $27.4 million, or 43 cents per share last year. That was a bigger loss than the 41 cents per share analysts polled by Thomson Reuters, on average, expected.

Revenue fell 49 percent to $29.9 million from $58.3 million a year ago. The company had forecast sales of $26 million to $30 million and analysts predicted sales of $29.2 million.

LeapFrog said the weak sales were due to seasonal slowness and high retailer inventory following a weak holiday season.

"Channel inventory remains higher than normal, and we are actively working with retailers to reduce inventory to satisfactory levels by adjusting our promotional strategies and marketing plans," said Jeffrey Katz, chairman and chief executive.