Rosetta Stone 2009 Annual Report Download - page 20

Table of Contents
in research and development, 190 in general and administrative and 894 kiosk sales employees. None of our employees is represented by a collective
bargaining agreement. We believe our employee relations are good.
Other Information
Our Internet address is www.rosettastone.com. We make available free of charge through our Internet website our annual reports on Form 10-K,
quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to the Securities Act of 1934 as
soon as reasonably practicable after we electronically file such material with, or furnish it to, the United States Securities and Exchange Commission (SEC).
Item 1A. Risk Factors
In addition to the other information set forth in this annual report on Form 10-K, you should carefully consider the risk factors discussed below and in
other documents we file with the Securities and Exchange Commission, which could materially affect our business, financial condition or future results. These
are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may
materially adversely affect our business, financial condition and/or operating results.
Our actual operating results may differ significantly from our guidance.
From time to time, we may release guidance in our quarterly earnings releases, quarterly earnings conference call, or otherwise, regarding our future
performance that represent our management's estimates as of the date of release. This guidance, which includes forward-looking statements, is based on
projections prepared by our management. These projections are not prepared with a view toward compliance with published guidelines of the American
Institute of Certified Public Accountants, and neither our registered public accountants nor any other independent expert or outside party compiles or
examines the projections and, accordingly, no such person expresses any opinion or any other form of assurance with respect thereto.
Projections are based upon a number of assumptions and estimates that, while presented with numerical specificity, are inherently subject to significant
business, economic and competitive uncertainties and contingencies, many of which are beyond our control and are based upon specific assumptions with
respect to future business decisions, some of which will change. We generally state possible outcomes as high and low ranges which are intended to provide a
sensitivity analysis as variables are changed but are not intended to represent that actual results could not fall outside of the suggested ranges. The principal
reason that we release guidance is to provide a basis for our management to discuss our business outlook with analysts and investors. We do not accept any
responsibility for any projections or reports published by any such persons.
Guidance is necessarily speculative in nature, and it can be expected that some or all of the assumptions of the guidance furnished by us will not
materialize or will vary significantly from actual results. Accordingly, our guidance is only an estimate of what management believes is realizable as of the
date of release. Actual results will vary from our guidance and the variations may be material. In light of the foregoing, investors are urged not to rely upon, or
otherwise consider, our guidance in making an investment decision in respect of our common stock.
Any failure to successfully implement our operating strategy or the occurrence of any of the events or circumstances set forth in our "Risk Factors" and
in this annual report on Form 10-K could result in the actual operating results being different from our guidance, and such differences may be adverse and
material.
18