MALIBU, Calif. (AP) -- The cost to Jakks Pacific of fighting off a takeover attempt sank its second-quarter net income and overshadowed stronger sales of toys.
The seller of Hello Kitty, Pokemon and Cabbage Patch Kids toys earned $214,000, or 1 cent per share, from April through June, down from $4.2 million, or 16 cents per share, a year ago.
Jakks spent $1.7 million, before taxes, to battle investment firm Oaktree Capital Management. Oaktree, which owns about 5 percent of Jakks' stock, offered $20 per share last fall in a bid to take the company private. Jakks rejected that offer and talks with Oaktree stalled in June.
Jakks bought 4 million of its own shares for $80 million as the buyout attempt went on.
Excluding financial and legal expenses, profit was 6 cents per share. Wall Street was looking for 11 cents per share, according to a FactSet poll, but those estimates usually exclude one-time costs.
Revenue rose 10 percent to $145.4 million from $131.9 million, as the company boosted sales of its Monsuno action figures in the U.S. and launched its Winx Club dolls and Big Wheel tricycles at major retailers.
That easily beat expectations.
Jakks maintained its 2012 revenue guidance of $720 million to $728 million and raised its profit outlook to $1.04 to $1.08 per share from $1.01 to $1.07 per share. The new profit guidance takes into account the company's stock buybacks, but doesn't include financial advisory and legal fees.
Still, analysts expect stronger results for the year, with a forecast of $1.09 per share in profit on $733.9 million in revenue.
Also on Tuesday, Jakks said it reached a deal with technology company NantWorks LLC to create a joint venture, to be called DreamPlay Toys, which will develop, market and sell toys using NantWorks' image recognition technology. Financial terms were not disclosed.
Shares of Jakks Pacific Inc., based Malibu, Calif., rose 21 cents to $16.02 in afternoon trading.
