LeapFrog Enterprises Inc. shares plummeted 26 percent after the maker of children’s electronics posted a wider loss than projected, hurt by sluggish demand for tablets and other products.
Sales tumbled 40 percent to $33.9 million in the fiscal fourth quarter, which ended March 31, the Emeryville, California-based company said on Thursday. The company posted a quarterly loss of 56 cents a share, excluding some items. Analysts had estimated a 21-cent loss on average, according to data compiled by Bloomberg.
Shrinking demand for tablets and related content weighed on sales last quarter, LeapFrog said. Retailers also were still working through a buildup of inventory left over from the holiday season, another a weak sales period for the company. A later-than-planned shipment of the LeapTV video-gaming platform contributed to the slump.
“While we are disappointed with our fiscal 2015 results, we believe that by responding effectively to the changing needs of parents and leveraging our unique assets we can transform our business and deliver enduring growth,” Chief Executive Officer John Barbour said in the statement.
The shares fell to $1.54 in New York, the biggest one-day decline since Jan. 23. The stock has now lost more than two-thirds of its value this year.