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Rosetta Stone reports fourth quarter 2009 results |
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Rosetta Stone Inc., which provides technology-based language learning solutions, has reported record revenues and earnings for its fourth quarter and year ended December 31, 2009. The company also announced plans to release its next generation language-learning solution in the third quarter of 2010, and provided financial guidance for the first quarter and full-year 2010.  Rosetta Stone's total revenue for the fourth quarter of 2009 was $78.3 million, an increase of 18% as compared to $66.3 million in the prior-year period. Adjusted EBITDA for the quarter was $21.4 million, an increase of 84% over the $11.6 million from the prior-year period. Net income was $12.2 million, or $0.58 per share, an increase of 100% over the $0.29 per share reported in the fourth quarter of 2008. Total revenue for the year was $252.3 million, an increase of 20% over the $209.4 million reported in the prior-year period. Adjusted EBITDA for the year was $48.7 million, an increase of 34% over the $36.4 million reported in the prior-year period. Net income for the year was $13.4 million, or $0.67 per share as compared to $13.9 million, or $0.82 per share reported in 2008. For the full-year 2009, free cash flow was a record $32.7 million, up from the $11.3 million generated in 2008. As on December 31, 2009, cash and cash equivalents were $95.2 million, an increase of $24.0 million from September 30, 2009. Tom Adams, president and CEO of Rosetta Stone said strong demand from both consumers and institutions for the company's language-learning solution were responsible for driving the record revenues and earnings during the fourth quarter. Rosetta Stone also announced that Rosetta Stone Version 4 TOTALe, its next generation language-learning solution has been scheduled for release in the third quarter of 2010. The company said that in conjunction with the overall launch, it was planning to come out with an introductory offering at a sub-$200 price point that will help a new segment of learners to experience Rosetta Stone. For the first quarter of 2010, Rosetta Stone anticipates total revenues of $58 million to $60 million, with total sales bookings of approximately the same amount. It expects an operating EBITDA (Adjusted EBITDA plus the change in deferred revenue) of $3.1 million to $3.6 million, and diluted weighted-average shares outstanding of approximately 21.2 million. It said it would its guidance regarding first quarter 2010 GAAP net income reflects the expectation that it will incur approximately $4 million in litigation expenses related to its previously disclosed lawsuit seeking to prevent Google Inc. from infringing upon Rosetta Stone’s trademarks, including a trial which is expected to be held in the second quarter. For the full year 2010, the company said total revenue expected was $286 million to $299 million, with total sales bookings of between $310 million and $325 million. It expects a GAAP diluted net income per share of $0.78 to $0.88 and operating EBITDA of $58 million to $65 million, with diluted weighted-average shares outstanding of approximately 21.5 million. It anticipates litigation expenses of around $6 million in its lawsuit against Google Inc. as mentioned earlier. |
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