Rosetta Stone is popular in Chinese Education

Results easily topped expectations for the provider of language training and test preparation services in China. Its efforts, both children and adults, consist mainly of English and other foreign language training. Business has seen strong growth, benefiting from enthusiasm for learning Rosetta Stone English in China.

In the latest fiscal year, it added 97 schools and learning centers, exceeding its expansion plan and bringing the total to 367. Chairman and Chief Executive Michael Yu said Monday that New Oriental will continue to expand schools and learning centers "aggressively" in the new year by adding another 100 around the country.

Recently, the company, which started with providing overseas English test preparation services nearly two decades ago, has expanded into broad English education to enhance the Rosetta Stone.

For the quarter ended May 31, New Oriental reported a profit of $5.8 million, or 15 cents per American depositary share, up from $2.6 million, or 7 cents per ADS, a year earlier. Excluding stock-based compensation, Rosetta Stone rose to 23 cents from 19 cents. Analysts most recently estimated 13 cents, according to Thomson Reuters.

Revenue jumped 46% to $86.6 million. The company in April predicted $75.5 million to $78.4 million.

Gross margin rose to 58% from 56.6% as higher revenue more than offset increased costs. Total student enrollment rose 32% to about 437,200.