Rosetta Stone, Inc. (NYSE: RST) just gave us its first earnings report that had a full quarter’s worth public data in it.  The language learning software solution provider did not disappoint.  In fact, this is a solid report.

The company posted quarterly figures of $0.23 EPS on $56.5 million in revenues.  The estimates from Thomson Reuters were $0.13 EPS and $54.7 million in revenues.  If you include the costs associated with coming public and some other items, its loss was -$0.42 EPS.

Guidance looks ample here as well. The company sees the coming quarter coming in at $0.33 to $0.35 EPS and revenues of $64.5 million to $66.5 million.  Thomson Reuters has estimates listed as $0.30 EPS and almost $65.3 million in revenues.

For the fiscal year, these figures were put at $0.56 to $0.60 EPS net, but $1.22 to $1.26 non-GAAP EPS.  Revenues were put at $245 to $248 million.  Thomson Reuters had those figures listed as $1.04 non-GAAP EPS and $242.8 million in revenues.

Rosetta Stone shares closed up 5% at $27.31 with the strong market today, and shares are up around $28.75 in the after-hours session.  Its post-IPO range has been $21.33 to $32.54.

We now have some forward valuation figures to throw out there.  The market cap before the effect of after-hours trading was $555 million.  For this year at the mid-point of guidance, we have forward multiples of 22-times earnings and right at 2.25-times revenues.

JON C. OGG
JULY 30, 2009