It’s not all doom and gloom in toy land. Malibu, California-based Jakks Pacific is the second large toyco to report a lift in sales in as many days. The company saw net sales increase by 5.5% in its first quarter of 2008, ended March 31.

Jakks generated US$130.9 million in sales, up from US$124.1 million recorded for Q1 2007.

Chairman and CEO Jack Friedman pointed to increased sales of Hannah Montana toys, action figures and Plug It In & Play electronic products as driving the increase.

Company brass expects the black ink to continue flowing throughout fiscal 2008 with both new licensed goods for NeoPets, Hannah Montana, WWE, SpongeBob SquarePants, and non-licensed lines such as Girl Gourmet Cupcake Maker and Spa Factory hitting the market.

As of March 31, 2008, Jakk’s working capital sat at US$359.2 million, including cash and equivalents of US$238.3 million.