Rosetta Stone Losses Pile Up
But Firm Reports Unchanged Revenue
Posted: November 9, 2012
HARRISONBURG — Rosetta Stone’s revenues held steady in the third quarter, but the company recorded a net loss of $33.4 million, driven primarily by a $25.6 million valuation allowance established against its deferred tax assets.
Shares of Rosetta Stone (NYSE: RST) were up 2.33 points on Thursday to close at 12.89. The company’s 52-week low and high are 6.55 and 14.69, respectively. Excluding the valuation allowance and $1 million in costs related to its lawsuit against Google, the net loss would have totaled $1.7 million, compared to $1.2 million during the third quarter of 2011.
Total revenue for the quarter was unchanged at $62.2 million.
U.S. sales rose 5 percent, while international sales declined 8 percent.
Institutional business decreased 8 percent, mainly due to the nonrenewal of Army and Marine contracts last year, according to a news release detailing the company’s third-quarter financial results.
“We had a good third quarter,” President and CEO Steve Swad said in a statement. “We operated more efficiently and lowered expenses, including reducing our kiosk expenses and lowering our international media spending.”
Rosetta Stone is headquartered in Arlington, but Harrisonburg is home to the language software development company’s largest employment base, with about 500 employees. The company was founded in Harrisonburg in 1992.
Contact Doug Manners at 574-6293 or dmanners@dnronline.com
Shares of Rosetta Stone (NYSE: RST) were up 2.33 points on Thursday to close at 12.89. The company’s 52-week low and high are 6.55 and 14.69, respectively. Excluding the valuation allowance and $1 million in costs related to its lawsuit against Google, the net loss would have totaled $1.7 million, compared to $1.2 million during the third quarter of 2011.
Total revenue for the quarter was unchanged at $62.2 million.
U.S. sales rose 5 percent, while international sales declined 8 percent.
Institutional business decreased 8 percent, mainly due to the nonrenewal of Army and Marine contracts last year, according to a news release detailing the company’s third-quarter financial results.
“We had a good third quarter,” President and CEO Steve Swad said in a statement. “We operated more efficiently and lowered expenses, including reducing our kiosk expenses and lowering our international media spending.”
Rosetta Stone is headquartered in Arlington, but Harrisonburg is home to the language software development company’s largest employment base, with about 500 employees. The company was founded in Harrisonburg in 1992.
Contact Doug Manners at 574-6293 or dmanners@dnronline.com