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To: bruwin who wrote (21739)	7/21/2005 3:49:35 PM
From: Paul Senior	Respond to of 78661

JAKK sales. Perhaps it's the quarters that are being compared that the author has not specified clearly. Assuming toy sales are seasonal, comparisons would be this quarter's sales compared to the same quarter of last year. Not this quarter compared to the previous three months (that is, not Apr-Jun quarter compared to Jan-Mar quarter.) Here's from the company press release: "MALIBU, Calif., Jul 20, 2005 (BUSINESS WIRE) -- JAKKS Pacific, Inc. (NASDAQ:JAKK), a leading multi-brand company that designs and markets a broad range of toys, writing instruments and other consumer products, today announced record revenue and earnings results for the three and six-month periods ended June 30, 2005. Second quarter net sales increased to $127.1 million in 2005, compared to $109.4 million in the comparable period last year. Net income for the second quarter of 2005 increased $11.6 million, or $0.39 per diluted share, compared to $6.0 million, or $0.22 per diluted share, for the same period last year. The Company's net sales for the six months ended June 30, 2005 increased to $261.8 million, from $183.4 million during the same period in 2004. Net income for the first six months of 2005 was $21.7 million, or $0.73 per diluted share, compared to first six month 2004 earnings of $9.8 million, or $0.38 per diluted share. "The quarter was marked by record second quarter revenue and a significant increase in year-over-year profitability," said Jack Friedman, Chairman and Chief Executive Officer, JAKKS Pacific. "Our diverse products continue to be well received by our customers and our acquisition of Play Along in June 2004 has positively impacted our results and has helped make JAKKS Pacific a more diversified and more profitable company. Our results reflect the outstanding efforts of our employees in developing and marketing our broad array of products to traditional and new retail channels consistent with our plan, to create a more consistent revenue flow throughout all four quarters, with products that have selling seasons counter-seasonal to those of traditional toys." ---------- I'm not so surprised as the Fool author that JAKK has had a decent quarter now. Toy companies generally have their best quarterly sales as they sell into the Christmas season. So the author possibly expected Jakks 2nd quarter to be a weak quarter as is so for the large toy companies. However, as regards JAKK, if I recall correctly, JAKK is different because JAKK has purposely tried to reduce this seasonality factor with their product mixture and acquisitions. For example toys like kites, etc. that don't depend on Christmas sales.