FollowRosetta Stone is trading more than 11% lower on Thursday, just shy of its 52-week low of $7.42 after reporting disappointing Q4 results after the close on Wednesday.
RST Q4 sales were $79.2 million, below the Capital IQ estimate for $81.33 million. Net loss per share widened to $1.01 from a loss of $0.18 a year ago. Estimates, usually less items, were for a $0.09 loss.
It says it is refocusing its corporate strategy and realigning resources around its Global E&E segment. This will include cutting global non-E&E headcount approximately 15%, resulting in annual expense reductions of approximately $50 million. These actions will result in an estimated $7 million charge in Q115. It also recorded a non-cash charge of $18.0 million in Q414 to impair the carrying value of goodwill associated with the NA Consumer segment. Shares of RST were last trading at $8.44 with a 52-week range of $7.42 to $12.32.
