Emeryville, California-based LeapFrog Enterprises reported net sales of US$182.8 million for the fourth quarter 2006, down US$46 million from Q4 2005. The developer of technology-based learning products announced its full year-end and fourth quarter results late yesterday afternoon.

For 2006, the company reported net sales of US$502.3 million, racking up a loss of US$145.1 million. Additionally, inventories decreased 57% to US$73 million.

Jeffery G. Katz, president and CEO of the toyco, hailed the year-end as good news for the company, noting the majority of its operating plan restructure is behind the company. Meanwhile, CFO Bill Chiasson pinned LeapFrog’s downward sales on the LeapPad product line; the company is in the process of phasing out old models and re-jigging the line for fall 2007.