Rosetta Stone 2011 Annual Report Download - page 14

Table of Contents
In addition to visual learning experiences, our Version 3 and Version 4 solutions incorporate an integrated speech program utilizing our voice recognition
application, which works in languages that are traditionally not supported by general-purpose speech recognition software. As an integral component of the
program, this voice recognition feature works with our learners to promote the appropriate pronunciation of the words and concepts included in the lesson.
Throughout the curriculum sequence, our program combines the introduction of new concepts, practice of recent material and production of key phrases.
As learners progress along our curriculum, they transition from seeing and recognizing to speaking as our program prompts them to pronounce the words they
are being taught. Our solution covers all aspects necessary for fluency within a completely immersive environment without requiring translation or
explanation, including alphabet, vocabulary, intuitive grammar, reading, writing, listening, pronunciation and conversation. While rigorous and complete, the
curriculum is designed to remain flexible, allowing learners to alter their individual pace and focus of instruction to meet their particular goals and abilities.
The language content for our respective courses is organized into up to five levels of proficiency, with each level providing approximately 40 hours of
instruction and containing multiple units, lessons and activities.
Customers
Our customers include individuals, home school parents, educational institutions, armed forces, government agencies, corporations and not-for-profit
institutions. We sell to our customers through a direct-to-consumer, indirect retail consumer, home shopping networks in Korea and institutional marketing
and distribution strategy.
Channel Customer Type Representative Customers
Consumer Individual Based on our internal studies, 57% annually earn more than $75,000 and 40% earn more than $100,000
Retailers* Amazon.com, Barnes & Noble, Best Buy, Books-a-Million, Staples and Costco
Home Shopping Network GS Home Shopping, Inc. (Korea)
Institutional Educational Institutions Primary and Secondary Schools: New York City Department of Education (NY), DeKalb County Schools (GA),
Clark County School District (NV), School District of Hillsborough County (FL), Region 7 Education Service Center
(TX), Lodi Unified School District (CA), School Board of Orange County (FL), Santa Fe Public Schools (NM)
Universities: Liberty University, Rutgers—The State University of New Jersey, Northwood University
Government, Armed
Forces and Not-for-Profit
Organizations
Foreign Service Institute, TSA—Virginia, Centers for Disease Control, Servicio Nacional de Aprendizaje (Columbia),
Caribbean Examinations Council, Administrative Office of the U.S. Courts, U.S. Air Force, American Cancer
Society, New York Public Library
Corporations Andarko Petroleum Corp., Burberry Group, Deere & Company, Emerson Electric Co., Interstate Operating Company,
Marriott International, Inc., Molex Inc., National Oilwell Varco, Inc., Northern Trust, Pitney Bowes Inc.
We use third party distributors to sell to Best Buy, Staples and some smaller retailers.* 12