Profile: LeapFrog Enterprises Inc (LF)
2 Dec 2013
LeapFrog Enterprises, Inc. (LeapFrog), incorporated in 1997, is a developer of educational entertainment for children. The Company’s product portfolio consists of multimedia learning platforms and related content and learning toys. The Company has developed a number of learning platforms, including the LeapPad Explorer (LeapPad) learning tablet, the Leapster family of multimedia learning platforms and the Tag and Tag Junior reading systems, which supports a library of content titles. The Company has created hundreds of interactive content titles for its platforms, covering subjects, such as phonics, reading, writing and math. In addition, it has a line of stand-alone learning toys. LeapFrog’s products are connected to its online LeapFrog Learning Path (the Learning Path), which provides personalized feedback on a child’s learning progress, and offers product recommendations. During the year ended December 41, 2011, the Company launched App Center platform and LeapPad personalized learning tablet.
The Company’s products are sold through retailers, distributors and directly to consumers via the leapfrog.com online store and LeapFrog App Center. The Company generates revenue from selling its multimedia learning platforms and a range of learning toys. It also generates revenue from the sale of a range of cartridge based and digitally downloadable content and books for its platforms. The Company’s products are based on its curriculum, which teaches more than 2,500 skills across approximately 100 skill categories. LeapFrog operates in two segments: the United States segment and The International segment.
The United States segment is engaged in the development, design, sales and marketing of multimedia learning platforms and related content, as well as learning toys, sold in the United States. The United States segment accounted to approximately 75% of the Company’s revenues during 2011. The International segment is engaged in the localization, sales and marketing of multimedia learning platforms and related content, as well as learning toys, originally developed for the United States. It has retail outlets in the United Kingdom, France, Canada and Mexico, as well as distributors in various markets, such as Spain, Germany, Australia, New Zealand and Japan. The International segment accounted to approximately 25% of the Company’s revenues during 2011.
Multimedia Learning Platforms
LeapPad is a personalized learning tablet for children ages four to nine with a built-in camera and video recorder. The tablet includes art, story, and photo studio applications and two gigabytes of memory on board and can be used with both cartridges and digital content from the Company’s App Center. Leapster Explorer is designed for children ages four to nine, is a handheld multimedia learning platform featuring a high resolution, finger touch screen and 512 megabytes of memory, as well as optional attachments, such as a camera. Leapster Explorer is compatible with both cartridges and App Center content, and is compatible with the same Explorer library of cartridges available for LeapPad. Leapster2 is designed for children ages three to eight, is a handheld learning platform with a multi-directional control pad and a touch-screen enabled by a built-in stylus. The Company’s Leapster2 library of cartridges includes approximately 40 content titles featuring internally developed and licensed content.
Tag reading system is designed for children ages four to eight, is a stylus-based reading system that leverages core technology of optical pattern reading hardware and content. The Tag reading system is intended to develop fundamental reading skills and offers a library of approximately 55 interactive books, games and flash cards featuring licensed characters and content. The Tag reading system is Web-enabled and connects to the Learning Path. Tag Junior reading system leverages the same core technology as the Tag reading system, but is designed to introduce younger children ages one to four to books and reading. The Tag Junior library includes approximately 25 content titles that feature both internally developed and licensed content. The Tag Junior reading system is also Web-enabled and connects to the Learning Path.
The learning toys are used to develop skills for infants and young children, including phoneme, letter, number and color recognition, musical awareness and fine motor skills. Scout Collection is a line of learning toys themed aroundthe Company’s Scout puppy dog character. The line includes My Pal Scout and My Pal Violet, customizable, interactive plush puppies intended for children as young as six months old that are Web-enabled and connect to the Learning Path. The line also includes Text & Learn, Scribble & Write and Chat & Count for toddlers. Fridge Collection is a line of magnetic learning toys that introduce letter names, letter sounds, spelling, and songs to children ages 12 months and up. The line includes Fridge Phonics Magnetic Alphabet, Fridge Words Magnetic Word Builder, Fridge Farm Magnetic Animal Set, and Fridge Wash & Go Magnetic Vehicle Set. IDuring 2011, The Company introduced the new Magnet Zoo Animal Playset.
Learn & Groove Collection features bilingual musical learning toys, including the Learn & Groove Musical Table, Alphabet Drum, Color Play Drum, Music Wand, Counting Maracas and Animal Sounds Guitar. The Company also has a general line of learning toys, which includes Alphabet Pal, Sing & Spin Alphabet Zoo and Counting Candles Birthday Cake. It also includes My First Book toy books (also compatible with the Tag Junior reading system), Count & Scan Shopper, Cook & Play Potsy, and Fix & Learn Speedy, among others. During 2011, the Company introduced several new items in this line, including Shape & Sharing Picnic Basket, My Discovery House, Peek-a-Shoe Talking Octopus, Xylophone Zoo and Lettersaurus, among others.
The Learning Path is a Web-based service that the Company introduced in the United States, Canada and the United Kingdom. The core of the Learning Path is an online tool that helps parents track what their children are learning with the Company’s connected products. The Learning Path combines the Company’s curriculum and technology. App Center platform, through which customers may directly purchase downloadable digital content with a personal credit card, or with App Center cards sold at retailers or its online store. The Company’s App Center content includes over 100 games, electronic books (eBooks), flashcards and activities that feature LeapFrog owned characters, such as Mr. Pencil and Pet Pals, as well as licensed characters and content, such as Cars 2 and Scooby Doo. App Center provides content for topics, such as creativity through art, music and imaginative play, school basics through mathematics, reading and writing, geography through world, country and culture, life skills, and sciences, among others.
The Company competes with Sony, Nintendo, Apple, Mattel, Inc., Hasbro, Inc. and Vtech Holdings Ltd.
LeapFrog Enterprises Inc
Suite 100, 6401 Hollis Street
EMERYVILLE CA 94608
Company Web Links
- Analysis: LeapFrog may still bounce despite holiday sales warning
- Rising competition weighs on Leapfrog's outlook
- LeapFrog's revenue beats on strong LeapPad, LeapReader demand
- UPDATE 1-LeapFrog's revenue beats on strong LeapPad, LeapReader demand
- LeapFrog posts smaller loss on strong sales of tablets, toys