WWF FIGURES FLEX TOY MUSCLES FOR MALIBU MANUFACTURER.

Byline: Evan Pondel Staff Writer

The San Fernando Valley's game and toy makers are seeing some of the few benefits of an economic slide: Parents are looking for bargain-price means of entertaining their kids.

Consumers may cut back on more expensive goods amid an economic downturn, but World Wrestling Federation action figures and dress-up dolls are still attractive purchases, said Deborah Heisley, a professor of marketing at California State University, Northridge.

``Toys are not a high profile item on people's budget,'' Heisley said. ``People have the mind-set it's $10 here and $10 there.''

Although industry giants Mattel and Hasbro have seen their revenues drop, it appears that children aren't tiring of the newer, slightly edgier toys introduced locally.

JAKKS Pacific, a Malibu-based toy company, reported first quarter revenue Monday of $60 million, compared with $50.8 million for the same period a year ago.

Today game maker THQ Inc. is expected to report net earnings in the range of 2 cents to 4 cents per share for the quarter that ended March 31.

Hasbro on Monday reported a 40 percent loss of revenue to $463.3 million in the first quarter because Pokemon and Furby sales dropped. For Mattel, maker of Barbie dolls and Hot Wheels cars, first-quarter net income slipped to $34 million, although sales of nearly $732 million were well above the year-ago figure.

But while the big names rely largely on benchmark products, JAKKS differentiates itself by selling most of its products for less than $10 each, and this keeps the company essentially recession-proof, said Stephen Berman, president and co-founder.

``JAKKS has been profitable ever since its inception 18 years ago,'' Berman said. ``We have virtually no debt and a strong balance sheet.''

Whether little buyers are slamming The Rock or dressing up a Girl Force doll, JAKKS' performance also relies on the licensing it holds, including the exclusive license to sell collectible dolls from the upcoming live-action film ``Josie and the Pussycats.''

This year, THQ, a Calabasas-based software company, completed a joint venture with JAKKS to produce a WWF video game.

``The WWF is the male soap opera of toy viewership,'' said Berman.

JAKKS, which holds the master toy license to make WWF action figures and accessories, teamed up with THQ to utilize the group's expertise in video games, said Peter Dille, THQ vice president for marketing.

``THQ is in a very solid position,'' said Edward Williams, senior vice president at Gerard Klauer Mattison, based in New York. ``They have a dominant share in the children's market.''

At Monday's close, JAKKS Pacific was up $1.39, or 12.19 percent, to $12.79, while THQ declined 82 cents, or 2.12 percent, to $37.88 ahead of today's earnings announcement.

CAPTION(S):

2 photos

Photo: (1 -- color) Figures of World Wrestling Federation stars flex their toy muscles as strong sellers for JAKKS Pacific, a Malibu-based toy company that Monday reported first quarter revenue rose to $60 million from $50.8 million for the same period a year ago.

(2) An action figure of motocross racer Travis Pastrana is a popular seller for Malibu-based JAKKS Pacific toymakers.