LeapFrog 2009 Annual Report Download - page 21

Mr. Dodd served in various capacities at Compaq Computer Corporation, a manufacturer of personal computers,
most recently as Managing Director of operations and strategic procurement for the Presario personal computer
business. Mr. Dodd received his B.B.A. from Texas A&M University.
On February 11, 2010, we announced that, effective March 1, 2010, Jeffrey Katz, currently Chairman and CEO,
will take on the role of Executive Chairman. Bill Chiasson, currently Chief Financial Officer, will become Chief
Executive Officer and Mark Etnyre, currently Vice President and Corporate Controller, will become Chief
Financial Officer.
Available Information
We are subject to the information requirements of the Securities Exchange Act of 1934, or the Exchange Act.
Therefore, we file periodic reports, proxy statements and other information with the Securities and Exchange
Commission, or SEC. Such reports, proxy statements and other information may be obtained by visiting the
Public Reference Room of the SEC at 100 F Street, NE, Washington, DC 20549. You may obtain information
regarding the operation of the Public Reference Room of the SEC by calling the SEC at 1-800-SEC-0330. In
addition, the SEC maintains a website (www.sec.gov) that contains reports, proxy and information statements,
and other information regarding issuers that file electronically.
We make our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all
amendments to such reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act, available
(free of charge), or through the investor relations section of our website located at www.leapfroginvestor.com
under “Financial Information—SEC Filings” as soon as reasonably practicable after they are filed with or
furnished to the SEC. Information contained on or accessible through our website or contained on other websites
is not deemed to be part of this report on Form 10-K.
ITEM 1A. RISK FACTORS
Our business and the results of its operations are subject to many factors, some of which are beyond our control.
The following is a description of some of the risks and uncertainties that may affect our future financial
performance.
Our business depends on highly changeable consumer preferences and toy trends.
Even our successful products typically have a relatively short period of high demand and then sales decrease as
the products mature. For example, net sales of the classic LeapPad platforms in our U.S. consumer business
peaked in 2002 and are no longer material to our overall sales. We operate in an industry where consumer
preferences can change drastically from year to year. Unlike a subscription or other recurring revenue model, we
depend on our ability to correctly identify changing consumer sentiments well in advance and supply new
products that respond to such changes on a timely basis. Consumer preferences, and particularly children’s
preferences, are continually changing and are difficult to predict. Since our products typically have a long
development cycle, in some cases lasting many years, it can be difficult to predict correctly changing consumer
preferences and technology, entertainment and education trends. To remain competitive, we must continue to
develop new technologies and products and enhance existing technologies and product lines, as well as
successfully integrate third-party technology with our own.
In 2008, we introduced a number of new products and services to the market. These new products represented a
substantial portion of our 2008 and 2009 sales. Furthermore, in 2009, we introduced a new toy line and new
variations on our gaming and reading platforms. We cannot be sure that any new products or services will be
widely accepted and purchased by consumers, and if new products are not as successful as we expect, our
business and operating results will be adversely affected. Some of the key products launched in 2008 and 2009
have a high price point compared to other children’s products. Consumers may be especially resistant in the
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