(Reuters) - LeapFrog Enterprises Inc LF.N reported better-than-expected quarterly revenue, helped by strong demand for its educational toys such as LeapPad and LeapReader.
LeapFrog shares were up 3 percent in after-hours trading.
The company has been riding on the success of its children's tablets. In June, it launched the LeapPad Ultra, which has begun appearing in lists for toys to watch out for in the 2013 holiday season.
The holiday selling season is when many toy makers make more than a third of their sales.
LeapFrog forecast a third-quarter profit of about 32 cents per share. Analysts on average were expecting a profit of 34 cents per share, according to Thomson Reuters I/B/E/S.
The company also said it expects third-quarter sales to grow at a mid-to-high-single digit percentage rate.
Analysts were expecting revenue of $205.3 million.
Emeryville, California-based LeapFrog said its second-quarter net loss narrowed to $3.3 million, or 5 cents per share, from $8.1 million, or 12 cents per share, a year earlier.
Excluding items, the company reported a loss of 4 cents per share. Analysts on average had expected a loss of 8 cents per share.
Net sales rose 16 percent to $83 million in the quarter ended June 30, beating market estimates of $77.2 million.
LeapFrog shares closed at $11.80 on the New York Stock Exchange on Thursday.
Reporting by Chris Peters and Maria Thomas in Bangalore; Editing by Saumyadeb Chakrabarty, Maju Samuel