Jakks Posts Loss in Q1, Names New CEO

Jakks Pacific Inc., a Malibu, Calif.-based designer and marketer of pet products and other consumer goods, reported a net loss of $5.2 million on net sales of $77.3 million for the first quarter ended March 31, compared to a net loss of $10.8 million on net sales of $108.7 million in the year-ago period.

Jakks president and new CEO Stephen Berman said the quarter finished slightly ahead of expectations and that the company is on track to meet earnings guidance for this year of $1.10 to $1.20 per diluted share on net sales of $660 million to $670 million.

"The strategic cost saving initiatives and restructuring plan we implemented company-wide over the past nine months continue to be a top priority," he said.

Berman replaced Jack Friedman as CEO on April 1. Freidman continues to serve as chairman. Freidman also has been named the company's chief strategist.

Production of the 2010 fall portfolio is in full swing and the company expects to begin shipping new items in the second quarter. Berman said Jakks is simultaneously developing new products and initiatives for 2011 and beyond in order to position its portfolio for future growth.