Rosetta Stone Inc. reported unaudited consolidated earnings results for the second quarter and six months ended June 30, 2017. For the quarter, the company reported total revenue of $45,905,000 compared to $45,716,000 a year ago. Loss from operations was of $665,000 compared to $10,786,000 a year ago. Loss before income taxes was of $353,000 compared to $9,970,000 a year ago. Net loss was $1,135,000 or $0.05 per basic and diluted share compared to $8,978,000 or $0.41 per basic and diluted share a year ago. Net cash used in operating activities was $10,397,000 compared to $9,879,000 a year ago. Purchases of property and equipment were of $3,080,000 compared to $3,348,000 a year ago. Adjusted EBITDA was $3,902,000 compared to $56,000 a year ago.

For the six months, the company reported total revenue of $93,598,000 compared to $93,718,000 a year ago. Income from operations was of $280,000 compared to loss from operations of $18,973,000 a year ago. Income before income taxes was of $801,000 compared to loss before income taxes of $17,028,000 a year ago. Net loss was $681,000 or $0.03 per basic and diluted share compared to $16,485,000 or $0.75 per basic and diluted share a year ago. Net cash used in operating activities was $4,628,000 compared to $12,425,000 a year ago. Purchases of property and equipment were of $5,393,000 compared to $5,934,000 a year ago. Adjusted EBITDA was $9,057,000 compared to adjusted LBITDA of $1,508,000 a year ago.

With respect to full year 2017 guidance, the company is maintaining guidance for total revenue GAAP net loss, adjusted EBITDA and year end cash balance, while the company continues to believe a total consolidated revenue will be approximately $182 million to $185 million, outlook for the mix among the 3 segments has changed slightly. For the full year 2017, the company continues to expect the GAAP net loss to be between $13 million to $15 million, while the guidance range for positive adjusted EBITDA is unchanged at approximately $8 million to $10 million, expects full year results will be towards the low end of that range. This represents a significant increase over 2016's $4.4 million adjusted EBITDA. Finally, the company expects capital expenditures to approach $14 million for the year, which is down from previous guidance of $15 million.