Businessweek

LeapFrog Enterprises, Inc. develops educational entertainment for children. The company’s product portfolio consists of multimedia learning platforms and related content and learning toys. Business Segments and Operations The company’s two primary operating segments: United States (U.S.) and International. U.S.: The U.S. segment is responsible for the development, design, sales and marketing of multimedia learning platforms and related content, as well as learning toys, sold in the U.S. This segment markets and sells the company’s products directly to national and regional mass-market and specialty retailers and other retail stores and distributors. This segment also sells its products through its online store, App Center, and other Internet-based channels. The company’s customers include Wal-Mart Stores, Inc. (Wal-Mart), Toys “R” Us, Inc. (Toys “R” Us) and Target Corporation. International: The International segment is responsible for the localization, sales and marketing of multimedia learning platforms and related content, as well as learning toys, originally developed for the U.S. This segment markets and sells the company’s products to national and regional mass-market and specialty retailers and other outlets through its offices in the United Kingdom, France, Canada and Mexico, as well as through distributors in various markets, such as Australia, South Africa and Spain. The company’s customers include Wal-Mart and Toys “R”. Product Portfolio The company has developed a number of learning platforms, including the LeapPad family of learning tablets, the Leapster family of handheld learning game systems and the Tag and Tag Junior reading systems, which support a library of content titles. The company’s products are available in four languages and are sold globally through retailers, distributors and directly to consumers via the leapfrog.com online store and LeapFrog App Center. Multimedia Learning Platforms The company’s multimedia learning platform products include features that facilitate various learning experiences provided by its rich content libraries available in both cartridge and digitally-downloadable forms. Many of its products connect to its proprietary online LeapFrog Learning Path (the Learning Path), which provides personalized feedback on a child’s learning progress and offers product recommendations to enhance each child’s learning experience. All of its multimedia learning platforms are Web-enabled and connect to the Learning Path. Hardware LeapPad2: During 2012, the company launched its second-generation LeapPad for children ages three to nine. In addition to existing LeapPad features, LeapPad2 updates include front and back cameras, faster processor, longer battery life and a recharger pack option, and 4 gigabytes of memory, double the on-board memory of LeapPad, allowing storage of approximately 25,000 photos or 70 downloads. LeapPad2 is compatible with both cartridges and digital content from its App Center. LeapPad: During 2011, the company launched LeapPad, a kid-tough, personalized learning tablet for children ages three to nine with a built-in camera and video recorder. The tablet includes art, story, and photo studio applications and two gigabytes of memory. LeapPad is compatible with both cartridges and digital content from its App Center. LeapsterGS: LeapsterGS, launched in 2012 and designed for children ages four to nine, is its next-generation Leapster Explorer. Updated features include motion-based play, a built-in camera and video recorder, kid-friendly controls, and a recharger pack option. LeapsterGS is compatible with both cartridges and App Center content. Leapster Explorer: Leapster Explorer is designed for children ages 4 to 9, is a handheld learning game system featuring 512 megabytes of memory, as well as optional attachments, such as a camera and recharger pack. Leapster Explorer is compatible with both cartridges and App Center content. Tag: The company’s Tag reading system is designed for children ages four to eight, is a stylus-based reading system that utilizes core technology of optical pattern reading hardware. The Tag readin