For Q1, the company sees sales of $26 million to $30 million, well short of the Street consensus of $43 million. For Q2, LeapFrog sees sales of $35 million to $45 million, missing the Street’s target of $52.9 million. Leapfrog sees gross margin in the 25%-27% range in Q1, improving to 30%-33% in Q2. In Q4, the company posted a gross margin of 34.9%.
The company did say that point-of-sale results for the year to date have been better than expected, up 6% through the first 9 weeks ended March 7. LeapFrog said sales of its Tag and Leapster2 products have been better than expected at retail, but that its Learning Toy line is “somewhat soft.”
The company notes that it has $85 million in cash and no debt; it has a market cap of $95 million.
In Thursday’s regular session, LF fell 12 cents, or 7.5%, to $1.49.