I just read the LF cc transcript. They said that last year, NPD data indicate that children's tablet sales tripled from Oct. to November. Therefore, LF decided to put most of their advertising $$$ into the next 6 weeks to take advantage of this.
Again, I believe the children's market is nice for Neon, but much bigger fish elsewhere going forward.
I wonder how much revenue LF books for each LP ultra tablet? They retail for $150 per device. LF booked $200 million in total revenue is q3, so maybe???500k Leap pad ultras sold? So that would be maybe $500k revenue in q3 to Neonode. I believe that LF only expects to sell 2 million units per year, mostly in q4, so the leap pad ultra is just a feather in Neon's cap, nothing more.
The LF conference call spoke to many stores being sold out of LP ultra, so I expect that sales are decent.
Understand that even if LF had a blowout quarter and sold over a million ultras, Neon would only see $1 million. Likewise, a bad quarter for LF isn't a big deal for Neon. We are only talking about a couple hundred thousand dollars (for Neon) between a bad and great quarter for LF.
Assuming that Neon gets the ~$1 million in revenue like q2, add $500k for leap pad and another $100k for Volvo retrofits, and we are at $1.6 million for q3....maybe some 3rd world e-readers and we are closing in on $2 million for the quarter. We find out soon enough, but a couple hundred k one way or another does not excite or bother me.