O'Connor-based Brainytoys Ltd said it is on track to reach its $20 millions sales target for this calendar year despite expecting a profitability loss of $3.4 million for fiscal 2008.
The toy developer said today it expected a strong turnaround in profitability for the December half after suffering from a high level of non-recurring and other development costs for the 2008 financial year.
For the first half of 2008, the company fell short of its sales target, set at $6 million, with sales for the period reaching $4.9 million.
Brainytoys said its sales were affected by inventory/purchasing financial challenges and a 'significant' level of industry turmoil.
Despite the challenges, management said it remained confident of achieving the $20 million target due to strong order books and customer interest.
Earlier this week the company secured $15 million in loans that will allow its United States arm to finance larger mass-market orders from major retailers.
Brainytoys was listed on the local stockmarket in late 2007 and has acquired firms in the United Kingdom, US and Hong Kong to form an global platform of specialty and mass-market toy companies.
