LeapFrog Enterprises Q3 performance significantly below expectations
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Net loss per basic and diluted share will be approximately $1.77.
For the fiscal third quarter ended December 31, 2014, company's preliminary unaudited results are:
Net sales will be approximately $145 million compared with prior guidance of $220 million to $240 million.
Net loss will be approximately $124 million, which includes non-cash charges of approximately $20 million for goodwill impairment and approximately $87 million for deferred tax asset valuation allowance.
Net loss per basic and diluted share will be approximately $1.77, which includes approximately $0.28 per share related to goodwill impairment and approximately $1.24 per share related to deferred tax asset valuation allowance. This compares to prior guidance of net income per diluted share to be in the range of $0.16 to $0.28, assuming an effective 37.5% tax rate.
Cash and cash equivalents will be approximately $94 million, accounts receivables will be approximately $101 million and inventories will be approximately $78 million. The company had no short-term or long-term debt outstanding as of December 31, 2014. ■