Rosetta Stone 2010 Annual Report Download - page 109
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Table of Contents
19. SUPPLEMENTAL QUARTERLY FINANCIAL INFORMATION (Unaudited)
Summarized quarterly supplemental consolidated financial information for 2010 and 2009 are as follows (in thousands, except per share amounts):
Quarter Ended
March 31, June 30, September 30, December 31,
2010
Revenue $ 63,014 $ 60,648 $ 60,926 $ 74,280
Gross profit $ 54,372 $ 53,046 $ 50,497 $ 61,954
Net income (loss) $ 5,005 $ 3,699 $ (385) $ 4,965
Basic income per share $ 0.25 $ 0.18 $ (0.02) $ 0.24
Shares used in basic per share computation 20,258 20,346 20,490 20,652
Diluted income per share $ 0.24 $ 0.17 $ (0.02) $ 0.23
Shares used in diluted per share computation 21,060 21,220 20,490 21,265
2009
Revenue $ 50,284 $ 56,460 $ 67,216 $ 78,311
Gross profit $ 43,857 $ 48,758 $ 58,208 $ 68,021
Net income (loss)(a) $ 3,195 $ (7,292) $ 5,303 $ 12,157
Basic income per share(a) $ 1.65 $ (0.42) $ 0.26 $ 0.60
Shares used in basic per share computation 1,939 17,370 20,177 20,216
Diluted income per share(a) $ 0.19 $ (0.42) $ 0.25 $ 0.58
Shares used in diluted per share computation 17,095 17,370 20,988 20,968
The second quarter of 2009 contained an IPO-related $18.8 million expense, consisting of $18.5 million in stock-based compensation
expense and $0.3 million in payoll tax expense, related to common stock grants awarded to key employees equal to a total of 591,491
shares.
(a)
20. SUBSEQUENT EVENTS
On January 4, 2011, the Company's board of directors approved the Rosetta Stone Inc. Long Term Incentive Program ("LTIP"), a new long-term
incentive program. The LTIP, which will be administered under the Rosetta Stone Inc. 2009 Omnibus Incentive Plan (the "Plan") and the shares awarded
under the LTIP will be taken from the shares reserved under the Plan. The purpose of the LTIP is to: advance the best interests of the Company; motivate
senior management to achieve key financial and strategic business objectives of the Company; offer eligible executives a competitive total compensation
package; reward executives in the success of the Company; provide ownership in the Company; and retain key talent. Executives designated by the board of
directors will be eligible to receive shares of restricted common stock for each milestone level of total market capitalization achieved, as specified in
individual award agreements. For each milestone achieved in market capitalization from the market capitalization as of October 1, 2010, the compensation
committee of the board of directors will allocate a share incentive pool amongst the participating executives as specified in individual award agreements. For
the first $100 million increase in market capitalization, participating executives will be eligible to receive a portion of 75,000 shares of the share incentive
pool restricted common stock. Each
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