Declining licensing revenue from Yu-Gi-Oh! and the Teenage Mutant Ninja Turtles, as well as a drop in ad sales for 4KidsTV, led to a decline in net revenues for 4Kids Entertainment from $80.6 million in 2005 to $71.8 million in 2006.  4Kids posted a $2.3 million loss for the fourth quarter and $1.0 million net loss for the year, but 4Kids Chairman and CEO Alfred R. Kahn noted, 'With cash and investments of $111.0 million and no debt at December 31, 2006, 4Kids remains well positioned for the future.'

For 2007 4Kids is banking on a renewal of licensing interest in the venerable Teenage Mutant Ninja Turtle property thanks to the release of a new CGI TMNT feature film later this month.  The company is also expecting improved revenues from its initiative with the Chaotic Collectible Card Game (see 'Al Kahn and Bryan Gannon on the Chaotic TCG').  In a move away from its traditional licensing-only pattern, 4Kids has started its own trading card manufacturing company in order to get a bigger share of the high margin CCG business, and has also purchased 50% of a companion Website that will provide added value to game players.  Kahn believes 'that the trading card company and the Chaotic website will also provide the Company with platforms upon which to launch future properties and will enhance the Company's ability to compete in the digital universe.'