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Consolidated Investment Analysis for Rosetta Stone (NYSE:RST) Rosetta Stone Inc. is a provider of technology-based language learning solutions. The Company develops, markets and sells language learning solutions consisting of software, online services and audio practice tools primarily under its Rosetta Stone brand. Its teaching method, called as Dynamic Immersion, is designed to use the innate, natural language learning ability that children use to learn their native language. The Company's courses are based on its interactive technologies and pedagogical content, and utilize a sequencing of images, text and sounds to teach a new language without translation or grammar explanation. As of December 31, 2009, the Company offered its self-study language learning solutions in 31 languages. Its customers include individuals, educational institutions, armed forces, government agencies and corporations. On November 1, 2009, the Company acquired certain assets from SGLC International Co. Ltd., headquartered in Seoul, South Korea. Share Statistics Symbol Current Price 52wk Range Avg Vol (3m)

RST 20.55 16.30‐ 27.50 123,643

EPS Market Cap 52wk Change P/E (ttm)

0.97 428.22M 21.17% 21.27

Financial Summary

On November 10, 2010, Rosetta Stone Inc reported 3rd quarter 2010 losses of 0.02 per share. This result exceeded the -0.07 consensus loss of the 6 analysts covering the companyand under-performed last year's 3rd quarter results by 0.31. The next earnings announcement is expected on February 21, 2011. Rosetta Stone Inc reported annual 2009 earnings of 1.38 per share on February 25, 2010. The next earnings announcement from Rosetta Stone Inc is expected the week of February 21, 2011. RST had 3rd quarter 2010 revenues of 60.93m. This missed the 62.72m consensus estimate of the 7 analysts following the company. This was 0.46% above the prior year's 3rd quarter results. RST had revenues for the full year 2009 of 252.27m. Last year the company did not report any revenues.


Analyst Consensus Buy

Outperform

Hold

Underperform

Sell

No Opinion

This is the consensus forecast amongst 9 polled investment analysts. Analyst Detail

Buy

Outperform

Hold

Underperform

Sell

No Opinion

Latest

2

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7

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0

0

4 weeks ago

2

0

7

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0

0

2 months ago

3

0

6

0

0

0

3 months ago

3

0

6

0

0

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Last year

3

1

3

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The 5 analysts offering 12 month price targets for Rosetta Stone Inc (RST:NYQ) have a median target of 22.00, with a high estimate of 27.00 and a low estimate of 15.00. The median estimate represents a 7.06% increase from the last price of 20.55. Technical Analysis


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