NEW YORK (TheStreet) --Shares of LeapFrog Enterprises Inc. (LF) are down by 30.77% to $2.70 in mid-morning trading on Friday, after the company issued its preliminary results for the fiscal 2015 third quarter saying its sales fell "significantly' lower than expected and that it would not reach its full year guidance.

The children's educational toys and games maker said its sales declined due to a drop in holiday sales of children's tablets. The fall in consumer demand resulted in lower than planned LeapPad shipments for the quarter, the company said.

"Due to development issues, we shipped and promoted our new LeapTV educational video game system later than planned. This delay along with communication challenges and inconsistent execution at retail resulted in us significantly missing our sales expectations on this innovative new platform," the company added.

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As a result of the decline in sales the company will face a fiscal 2015 third quarter net loss of $124 million, or a loss of $1.77 per basic and diluted share.

This compares to the company's prior guidance of a net income range between 16 cents and 28 cents per diluted share for the quarter.

Net sales will be approximately $145 million versus LeapFrog's earlier guidance of $220 million to $240 million for the quarter.

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