Exhibit 99.1 JAKKS Pacific Reports 2007 Second Quarter and First Six Month Results --- Company Reiterates Full Year Guidance of $800 Million in Net Sales and Net Income of $75.8 Million, or $2.39 Per Diluted Share --- MALIBU, Calif.--(BUSINESS WIRE)--July 25, 2007--JAKKS Pacific, Inc. (NASDAQ:JAKK), a leading toy and consumer products company, today announced results for the second quarter and six months ended June 30, 2007. Second quarter 2007 net sales were $129.5 million, compared to $124.0 million recorded in the comparable period last year. Net income for the second quarter was $5.0 million, or $0.17 per diluted share, compared to $6.4 million, or $0.22 per diluted share, reported in the second quarter of 2006. The Company's net sales for the six months ended June 30, 2007 were $253.6 million, compared to $231.3 million during the same period in 2006. Net income for the first six months of 2007 was $8.3 million, or $0.30 per diluted share, compared to the first six months 2006 earnings of $8.7 million, or $0.31 per diluted share. "We have excellent placement of our key items at major retailers as we head into the important holiday season," said Jack Friedman, Chairman and Chief Executive Officer, JAKKS Pacific. "With an exciting roster of new products hitting retail late summer and early fall, we are very comfortable with our previously issued full-year guidance of $800 million in net sales and net income of $75.8 million, or $2.39 per diluted share." Stephen Berman, President and Chief Operating Officer, stated, "Several of our product lines exceeded our expectations in the second quarter, with the largest contributions coming from our action figures, dress-up and role play toys. And, as expected, while we began shipping our sales drivers for Fall at the end of the second quarter, the bulk of our new products began shipping early in the third quarter. "Our investments in product development, strategic marketing programs and our overall portfolio of innovative products, many based on popular and classic licenses, have us well-positioned to achieve record sales in the second half of 2007. We expect strong performances from many of our product lines, including WWE(R) and Pokemon(R) action figures, a full array of dolls, playsets, electronics and role play accessories for the two top Disney sensations Hannah Montana(TM) and The Cheetah Girls(TM), new TV Games, as well as our Plug It In & Play EyeClops Bionic Eye(TM), our new line of XPV Xtreme Performance Vehicles(R) toys, Puppy in My Pocket(R) and more." Mr. Friedman concluded, "We will continue to seek to grow our business by actively pursuing additional character and product licenses, as well as complementary acquisitions that offer valuable product lines, trademarks or brands. Our financial position remains very strong and, as of June 30, 2007, our working capital was approximately $292.1 million, including cash and equivalents of $180.9 million." JAKKS Pacific is hosting a teleconference at 10:30 a.m. ET (7:30 a.m. PT) on June 25th, via the Internet at www.jakkspacific.com, www.CompanyBoardroom.com, or www.StreetEvents.com. These websites will host an archive of the teleconference for 30 days. A telephone playback will be available from 11:45 a.m. Eastern on July 25th through 11:59 p.m. Eastern on August 24th. The playback can be accessed by calling 800-642-1687 or 706-645-9291 for international callers, passcode "1256686". About JAKKS Pacific, Inc. JAKKS Pacific, Inc. (NASDAQ:JAKK) is a multi-brand company that designs and markets a broad range of toys and consumer products. The product categories include: Action Figures, Art Activity Kits, Stationery, Writing Instruments, Performance Kites, Water Toys, Sports Activity Toys, Vehicles, Infant/Pre-School, Plush, Construction Toys, Electronics, Dolls, Dress-Up, Role Play, and Pet Toys and Accessories. The products are sold under various brand names including JAKKS Pacific(R), Play Along(R), Flying Colors(R), Creative Designs International(TM), Road Champs(R), Child Guidance(R), Pentech(R), Trendmasters(R), Toymax(R), Funnoodle(R), Go Fly A Kite(R), Color Workshop(R), JPI(TM) and Plug It In & Play TV Games(TM). JAKKS and THQ Inc. participate in a joint venture that has worldwide rights to publish and market World Wrestling Entertainment video games. For further information, visit www.jakkspacific.com. This press release may contain forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations, estimates and projections about JAKKS Pacific's business based partly on assumptions made by its management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such statements due to numerous factors, including, but not limited to, those described above, changes in demand for JAKKS' products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, and difficulties with integrating acquired businesses. The forward-looking statements contained herein speak only as of the date on which they are made, and JAKKS undertakes no obligation to update any of them to reflect events or circumstances after the date of this release. (C) JAKKS Pacific, Inc. All Right Reserved. JAKKS Pacific, Inc. and Subsidiaries Condensed Consolidated Balance Sheets June 30, December 31, 2007 2006 ------------- ------------ (In thousands) ASSETS Current assets: Cash and cash equivalents $ 180,887 $ 184,489 Marketable securities 213 210 Accounts receivable, net 89,768 153,116 Inventory, net 78,576 76,788 Deferred income taxes 8,866 10,592 Prepaid expenses and other current assets 24,386 26,543 ------------- ------------ Total current assets 382,696 451,738 ------------- ------------ Property and equipment 50,195 49,781 Less accumulated depreciation and amortization 32,807 32,898 ------------- ------------ Property and equipment, net 17,388 16,883 ------------- ------------ Deferred income taxes 1,471 - Goodwill, net 340,007 337,999 Trademarks & other assets, net 53,044 60,401 Investment in video game joint venture 17,111 14,873 ------------- ------------ Total assets $ 811,717 $ 881,894 ============= ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses $ 72,834 $ 120,238 Reserve for sales returns and allowances 17,276 32,589 Income taxes payable 514 18,548 ------------- ------------ Total current liabilities 90,624 171,375 ------------- ------------ Long term debt 98,000 98,000 Other liabilities 5,815 854 Income taxes payable 8,092 - Deferred income taxes 2,244 2,377 ------------- ------------ 114,151 101,231 ------------- ------------ Total liabilities 204,775 272,606 Stockholders' equity: Common stock, $.001 par value 28 28 Additional paid-in capital 305,649 300,255 Retained earnings 304,702 312,432 Accumulated other comprehensive income (loss) (3,437) (3,427) ------------- ------------ 606,942 609,288 ------------- ------------ Total liabilities and stockholders' equity $ 811,717 $ 881,894 ============= ============ JAKKS Pacific, Inc. and Subsidiaries Second Quarter Earnings Announcement, 2007 Condensed Statements of Income (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2007 2006 2007 2006 --------- --------- --------- --------- (In thousands, expect per share data) Net sales $129,547 $124,041 $253,609 $231,286 Less cost of sales Cost of goods 69,128 61,872 133,498 114,080 Royalty expense 13,130 11,469 25,457 21,084 Amortization of tools and molds 1,994 1,420 3,851 2,679 --------- --------- --------- --------- Cost of sales 84,252 74,761 162,806 137,843 --------- --------- --------- --------- Gross profit 45,295 49,280 90,803 93,443 Direct selling expenses 8,997 11,893 20,824 26,223 Selling, general and administrative expenses 25,820 24,236 52,223 47,300 Depreciation and amortization 3,990 4,188 7,944 8,712 --------- --------- --------- --------- Income from operations 6,488 8,963 9,812 11,208 Other income (expense): Profit (loss) from video game joint venture 714 220 2,209 977 Interest income 1,793 1,085 3,307 2,500 Interest expense (1,592) (1,133) (3,163) (2,266) Other expense - - - - --------- --------- --------- --------- Income before provision for income taxes 7,403 9,135 12,165 12,419 Provision for income taxes 2,369 2,774 3,893 3,727 --------- --------- --------- --------- Net income $ 5,034 $ 6,361 $ 8,272 $ 8,692 ========= ========= ========= ========= Earnings per share - diluted $ 0.17 $ 0.22 $ 0.30 $ 0.31 Shares used in earnings per share - diluted 33,133 32,790 33,019 32,752 CONTACT: JAKKS Pacific, Inc. Genna Rosenberg, 310-455-6235 or Integrated Corporate Relations John Mills, 310-954-1100