June 08, 2011
US-based language learning software maker Rosetta Stone has seen its market capitalization plummet 35% in the last 6 months as its efforts to get Americans to learn a foreign language appear to have floundered. Its latest quarterly earnings report show sales of around $55 million in the quarter, down 9% year-on-year. Although international and institutional sales were up by 35%, sales in the US were down by 28%.
CEO Tom Adams has said that the company is "in transition" and as part of that transition will launch a product in the third quarter to help Asian customers who already have an academic knowledge of English understand the conversational complexities of the language. According to Adams it is a potential "game changer" for the company.
"Globally, the language-learning market for beginners is small relative to the intermediate and advanced market for English where you need to improve your proficiency," he said. "If we can have a small percentage of them adopt our technology, it's a game-changer for the company."
Rosetta Stone's flagship TotalE product was just launched on Apple's iPad. Rosetta Stone has a market capitalization of around $280 million.
• Rosetta Stone First Quarter 2011 Results
• ELTNEWS.com Interview the Rosetta Stone Japan president Tak Shiohama
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