EMERYVILLE, Calif. (AFX) - Educational toymaker LeapFrog Enterprises Inc. said Wednesday its second-quarter loss more than doubled on a 22 percent drop in revenue, widely missing Wall Street predictions.
LeapFrog posted a quarterly loss of $25.7 million, or 41 cents per share, compared with $9.8 million, or 16 cents per share, for the same quarter in 2005. Revenue fell to $68.1 million from $87.1 million in the year-ago period.
Analysts polled by Thomson Financial had expected a second-quarter loss of 25 cents per share on $82.3 million in revenue.
'The results speak for themselves -- LeapFrog is a company with fundamentals that need to be addressed,' Jeffrey G. Katz, the company's president and chief executive, said in a statement.
LeapFrog said its performance suffered from lower sales of its LeapPad line of products, along with increased sales discounts and allowances.
Gross margin for the quarter was 25.1 percent, down 18.3 percentage points from the second quarter of 2005.
LeapFrog shares closed down 24 cents, or 2.5 percent, at $9.55 on the New York Stock Exchange. In aftermarket activity, they plummeted another $1.95, or 20.4 percent, to $7.60. The stock has traded between $9.30 and $15.35 over the past year.
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