Language-learning software maker Rosetta Stone Inc. (NYSE:RST), with headquarters in Arlington, reported an increase in total revenue for the second quarter 2011 ended June 30. Revenue was $66.74 Million, up 10% in the quarter from the prior year where sales were $60.64 Million.
Despite the revenue increase, a net loss of $4.55 Million ($-0.22 cents per diluted share) was reported contrasted to a net income of $3.69 Million ($0.17 cents per diluted share).
"Continued strength in our international consumer markets helped drive financial performance above our expectations in the second quarter," said Tom Adams, president and chief executive officer of Rosetta Stone. "It was great to see improving trends in the key channels of our US Consumer business. But most importantly, we're delighted to see our newest offering, Rosetta Stone ReFLEX, launching in Korea. ReFLEX is engineered to transform the English language learning landscape in Asia - with daily sessions that include dialogue practice with native English speakers."
Rosetta Stone has turned its attention to International markets where consumer bookings increased 58%. U.S. Consumer bookings decreased 5%.
The company still had a large stockpile of cash totaling $115.1 Million as of June 30, 2011.
Financial Outlook showed anticipated revenues in the range of $65 to $70 Million with the U.S. market sales falling back 12-17%. Rosetta Stone still estimates a net loss of between $5 to 1 Million or ($-0.24 to $-0.05 cents per share).