The financial struggle continues for  Malibu, California-based toyco Jakks Pacific.

“The difficult and challenging toy environment did not generate the sales that had been anticipated, and several of our key products did not achieve the sales levels that we had planned for, also resulting in license royalty minimum guarantee shortfalls,” said CEO and president Stephen Berman in a statement.

He added that the “difficult environment for toys in 2012 resulted from rapid changes in children’s play patterns as tablet and smartphone devices and interactive games and toys have more and more become cornerstones of their play and fun experiences” and contended that the toyco’s partnership with NantWorks that will combine toys with iD recognition technology will put Jakks “at the forefront of the play revolution we are witnessing.”

Net sales for the fourth quarter of 2012 came in at US$133.5 million, compared to US$141.1 million during the same period in 2011. The reported net loss for the fourth quarter was US$119.5 million.

Net sales for the full year of 2012 were reported US$666.8 million compared to $677.8 million in 2011.

Berman concluded that the company would continue to reduce operating costs and concentrate on its core preschool/infant and seasonal business in order to return the company to the black.