Rosetta Stone losses widen; company lowers full-year estimate
- November 4, 2011
Losses at language-learning company Rosetta Stone widened during the third quarter as international consumer markets grew more slowly than expected and institutional sales fell.
The Arlington-based company reported a loss of $1.2 million, compared with a loss of $385,000 during the third quarter of 2010.
Revenues rose 5.4 percent to $64.2 million. However bookings, which represent sales contracts received by the company, fell 10 percent to $66.1 million.
The drop in bookings reflected the non-renewal of a large contract with the U.S. Army and lower sales at U.S. retail partners and kiosks.
Rosetta Stone lowered its earnings outlook for the full year, saying it expected lower revenues and a decline in bookings this year compared with 2010.