Type Public Industry Software development CEO John Hass (1 Apr 2015–) Headquarters Arlington Total assets 290.8 million USD (2013) | Traded as NYSE: RST Area served Worldwide Revenue 264.6 million USD (2013) Number of employees 1,375 | |
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Predecessor Fairfield Language Technologies Key people John Hass (CEO)
Tom Pierno (CFO) Founded 1992, Harrisonburg, Virginia, United States Founders Eugene Stoltzfus, Allen Stoltzfus, John Fairfield Profiles | ||
Rosetta Stone Inc. is an education technology software company that develops language, literacy and brain-fitness software. Best known for its language-learning products, in 2013 the company expanded beyond language into education-technology with its acquisitions of Livemocha, Lexia Learning, Fit Brains and Tell Me More.
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History
According to the company, founder Allen Stoltzfus learned German through immersion while living in Germany and found it relatively easy. In the 1980s, Stoltzfus began learning Russian in a classroom setting, but found the classroom setting much more difficult. He wanted to simulate the German experience, and he decided to use computer technology to create a similar learning experience. He enlisted the aid of his brother-in-law, John Fairfield, who held a PhD in computer science.
By 1992 CD-ROM technology made the project possible. They formed a company known as Fairfield Language Technologies in Harrisonburg, Virginia. Allen and John hired Eugene Stoltzfus (Allen's brother), Greg Keim and Michael Silverman. They released their software product under the title The Rosetta Stone. In 2003 the company announced the hiring of Tom Adams, a businessman with international experience, as President and CEO.
In 2006 the company changed names to Rosetta Stone, Ltd., and converted from an S corporation to a C corporation. Ownership transferred to investment firms ABS Capital Partners and Northwest Equity Partners. On September 23, 2008, Rosetta Stone Inc. filed an Initial public offering with the Securities and Exchange Commission.
On April 15, 2009, the company was listed as the Rosetta Stone on the New York Stock Exchange. Since 2016, the company's president and CEO has been John Hass. Rosetta Stone is transitioning to a cloud-based business model that goes beyond language learning and deeper into education technology. In 2013, it acquired four companies—Vivity Labs Inc (creators of the Fit Brains Trainer), Livemocha, Tell Me More, and Lexia Learning.
On September 17, 2013, Rosetta Stone announced the launch of a new Kids Division and in November, 2014 it debuted its first kids reading program for consumers, Rosetta Stone Kids Reading.
IPO
On April 15, 2009, Rosetta Stone raised $112 million in its initial public offering of stock shares. In its first full day of trading on the New York Stock Exchange, the stock gained 39% from its opening price. After a strong opening, however, the stock stumbled amid reports of weaknesses in Rosetta Stone's US business, resulting in the cancellation of a second offering, and a disappointing year end price just 5 cents off its opening price. The stock trades under ticker symbol RST. As of December 2015, the stock was at approximately $68.20 (USD) per share.
Offices
Endangered language communities
In 2004, Rosetta Stone Ltd. established its Endangered Language Program to contract with endangered language communities interested in custom software development to support language revitalization efforts.
Support for the Combating Online Infringement and Counterfeits Act
Rosetta Stone was among a group of companies signed to a letter supporting Combating Online Infringement and Counterfeits Act (COICA), a bill which opponents argue amounts to censorship.