hood language and literacy. Rosetta Stone Kids Reading app was launched in 2014 aimed to teach children aged 3-7 how to read using engaging self-paced interactive games and activities that introduce and reinforce core reading skills. Rosetta Stone Kids Reading includes various games and stories, plus various fun activities. Fit Brains for Kids Sparky's Adventures offers a first-of-its-kind cognitive approach to child learning and brain development that provides a fun and healthy collection of brain games for children aged 2-8. In 2013 the company launched Rosetta Stone Kids Lingo Letter Sounds and Rosetta Stone Kids Lingo Word Builder apps for children aged 3-6 that provide blended learning solutions to introduce kids to both basic literacy skills and a foreign language. Software Developments The company’s offering portfolio is a result of significant investment in software development. Its software development efforts include the design and build of software solutions across various devices, pedagogy and curriculum development, and the creation of learning content. Its development team builds new solutions and enhances or maintains existing solutions. The company has specific expertise in speech recognition technology, iterative and customer-focused software development, instructional design, and language acquisition. The company’s research and development expenses were $29.9 million for the year ended December 31, 2015. Distribution Channels Enterprise & Education The company’s Enterprise & Education language-learning distribution channel is focused on targeted sales activity primarily through a direct sales force in five markets, such as K-12 schools, colleges and universities, federal government agencies, not-for-profit organizations, and corporations. Educational Institutions: These customers include primary and secondary schools and colleges and universities. U.S. Federal Government Agencies and Not-for-Profit Organizations: These customers include government agencies and organizations developing workforces that serve non-native speaking populations, offering literacy programs, and preparing members for overseas missions. Corporations: The company promotes interest in this market with onsite visits, trade show and seminar attendance, speaking engagements, and direct mailings. Third-party Resellers: The company utilizes third-party resellers to provide its language-learning solutions to businesses, schools, and public-sector organizations in emerging markets predominantly outside the U.S. The company’s Enterprise & Education literacy distribution channel utilizes a direct sales force, as well as relationships with third-party resellers focused on the sale of Lexia solutions to K-12 schools. Consumer The company’s Consumer distribution channel comprises a mix of its call centers, Websites, third party e-commerce Websites, consignment distributors, select retail resellers, and daily deal partners. Direct to Consumer: Sales generated through either the company’s call centers and on its e-commerce Website at www.rosettastone.com. Indirect to Consumer: Sales generated through arrangements with third-party e-commerce Websites, such as the Apple App Store, and consignment distributors, such as Wynit Distribution and Software Packaging Associates. Retailers: The company’s retailers enable it to provide additional points of contact to educate consumers about its solutions, expand its presence beyond its own Websites, and further strengthen and enhance its brand image. Its retail relationships include Amazon.com, Barnes & Noble, Target, Best Buy, Books-a-Million, Sam's Club, Staples, and others in and outside of the U.S. The company also partners with daily deal resellers. Home School: The company promotes interest in the language-learning market through advertising in publications focused on home schooling, attending local trade shows, seminars and direct mailings. Seasonality The company’s business is affected by variations in seasonal trends. Within its Enterprise & Education segment, revenue in its education, government, and corporate sales channels are seasonally
rosetta stone inc (RS8:Berlin)
1919 North Lynn Street
Arlington, VA 22209
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