Rosetta Stone Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2018. For the quarter, the company reported total revenue of $43,502,000 compared to $45,905,000 a year ago. Loss from operations was of $3,645,000 compared to $665,000 a year ago. Loss before income taxes was of $3,704,000 compared to $353,000 a year ago. Net loss was $4,158,000 or $0.18 per basic and diluted share compared to $1,135,000 or $0.05 per basic and diluted share a year ago. Net cash used in operating activities was $14,316,000 compared to $10,756,000 a year ago. Purchases of property and equipment were of $4,188,000 compared to $3,080,000 a year ago. Adjusted EBITDA was $1,425,000 compared to $3,902,000 a year ago.

For the six months, the company reported total revenue of $86,310,000 compared to $93,598,000 a year ago. Loss from operations was of $9,300,000 compared to income from operations of $280,000 a year ago. Loss before income taxes was of $9,645,000 compared to income before income taxes of $801,000 a year ago. Net loss was $10,560,000 or $0.47 per basic and diluted share compared to $681,000 or $0.03 per basic and diluted share a year ago. Net cash used in operating activities was $14,734,000 compared to $5,000,000 a year ago. Purchases of property and equipment were of $8,136,000 compared to $5,393,000 a year ago. Adjusted EBITDA was $135,000 compared to $9,057,000 a year ago.

With the continued growth at Lexia and the increasing mix of sales from the education marketplace, which is seasonally strongest in the third quarter, it is expected that the majority of the Company's second half positive cash flow will be generated in the third quarter.

For the year 2018, consolidated sales to be approximately $192 million, which represents sales growth of $10 million after 3 years of decline.