NEW YORK -- Toy company Jakks-Pacific Inc. reported a 13 percent drop in third-quarter net income as it grappled with costs of fighting off a take-over attempt and weak sales.
The company, which makes toys under such brands as Cabbage Patch Kids and Hello Kitty, said it earned $30.4 million, or $1.10 per share in the three months ended Sept. 30. That compares with $34.8 million, or $1.10 per share in the year-ago period.
The per-share results did not change because the number of outstanding shares fell by more than 12 percent.
Jakks spent about $1 million before taxes to battle investment firm Oaktree Capital management. Oaktree, which owns about 5 percent of Jakks' stock, offered $20 per share during the fall of 2011 in a bid to take the company private. Jakks rejected that offer and talks with Oaktree stalled in June.
Excluding financial and legal expenses, profit was $1.13 per share. Analysts surveyed by FactSet were looking for $1.16 per share.
Revenue slipped more than 5 percent to $314.5 million from $332.4 million in the year-ago period.
Analysts were looking for $320.7 million, according to FactSet.
In a statement released Tuesday, Stephen Berman, president and CEO said that it saw "better-than-expected sales growth from its international business reflecting the success of its Monsuno line of toy products and solid performance from its Winx Club, Disney Princess and Disguise Halloween product lines. " "Our Monsuno, Winx Club, Cinderella and Big Wheels products, to name a few, have been received well at retail and have earned coveted positions on many retailers and media Hot Holiday Toy Lists both in the U.S. and abroad."
Jakks-Pacific, based in Malibu, Calif., said it still expects net sales for the full year to be in the range of $690 million to $700 million and expects its adjusted earnings per share to be in the range of 68 cents to 74 cents per share. That excludes non-recurring legal and financial advisory charges of 19 cents per share.
On Oct. 1, Jakks-Pacific cut its outlook due to weak sales in the U.S. and a slowdown in orders, along with higher marketing and advertising expenses. It had originally expected net income of $1.04 to $1.08 per share on revenue of $720 million to $728 million.
Jakks reiterated Tuesday that if it doesn't achieve the high end of its annual guidance, 74 cents per share, it will take a charge of $82 million, or $3.45 per share, on its deferred tax assets _ the company's expected tax deductions in future years.
Analysts are full-year profit of 67 cents per share on $684.4 million in revenue for the fiscal year.
Shares slipped 17 cents to $13.04 in morning trading Tuesday. The stock has traded between $12.18 and $19.76 in the last 52 weeks, and is down about 6.5 percent since the start of the year.