Financial Highlights
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Revenue for the third quarter of fiscal 2012 was
$57.8 million , a 9% increase over$53.2 million recorded in the prior sequential quarter and a 1% increase over$57.1 million recorded in the third quarter of fiscal 2011. The third quarter of fiscal 2012 included approximately$5.0 million of revenue related to new mapping content for a large automotive customer; the comparable quarter in fiscal 2011 included approximately$6.6 million of automotive revenue recognized as a result of amendments to a customer agreement.
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Revenue from strategic growth areas, which include automotive, enterprise location-based services (LBS), mobile advertising and commerce and premium LBS, was
$15.0 million , which compares with$8.6 million in the prior sequential quarter and$10.8 million in the same quarter one year ago. Excluding the revenue related to new mapping content in the third quarter of fiscal 2012, strategic growth areas increased 15% over the prior sequential quarter. Strategic growth areas represented 26% of total revenue in the period, up from 16% in the prior sequential quarter.
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International revenue for the third quarter of fiscal 2012 was
$3.2 million , up 11% from$2.9 million in the prior sequential quarter, representing 5% of total revenue.
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Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, and stock-based compensation expense) for the third quarter of fiscal 2012 was
$14.2 million , which compares with$14.8 million in the prior sequential quarter. Ending cash and investments totaled$209.8 million as ofMarch 31, 2012 .
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Total subscribers for
March 2012 increased to 32.0 million, including 4.8 million freemium subscribers. Freemium products are free basic navigation services that can be monetized through paid upgrades to premium products, as well as through advertising.
HP Jin, president, CEO and co-founder of
Net income for the third quarter of fiscal 2012 was
Non-GAAP net income for the third quarter of fiscal 2012 was
Recent Business Highlights
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Separately today, the company announced that
Douglas Miller , 55, its chief financial officer sinceMay 2006 , will resign effectiveJune 15, 2012 , to take an extended sabbatical. He will be succeeded byMichael Strambi , 50, currently the company's vice president of finance. Miller will remain with the company as a consultant for a period of time after his formal resignation to assure a continued smooth transition. Strambi joinedTelenav as vice president of finance in November 2009. He has more than 20 years of experience in financial leadership roles for public and private companies.
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The company announced that its Scout for Apps developer program is now open to all mobile and web developers. Scout for Apps gives developers an easy way to offer consumers free, turn-by-turn, voice-guided GPS navigation, directly from their app or website. It is the first HTML5, browser-based, voice-guided turn-by-turn GPS navigation service for mobile phones. Developers can integrate the service by simply adding one line of code, making it ideal for social, travel and shopping apps, or any other app or website that includes points of interest, places or addresses. Scout for Apps is ad-supported, or
Telenav will work with developers to offer other flexible licensing options.
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Telenav's branded iPhone applications continued to be among the most highly ranked navigation apps (Scout was recently released in the Lifestyle category) for iPhone in both the paid and free categories, with over 3.3 million downloads as ofMarch 31, 2012 .
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Telenav and MapmyIndia,India's leader in digital maps, navigation and location-based services, together announced the launch ofIndia's first mobile app that offers house number search and navigation on iPhones. MapmyIndia Navigator byTelenav provides award-winning, high-quality, voice-guided turn-by-turn GPS navigation, moving maps and access to millions of places for easy search and discovery.
Business Outlook
The company currently is in discussions related to its contract with Sprint, one of its largest customers. The contract expires as of
For the fourth fiscal quarter ending
For the fourth quarter of fiscal 2012 ending
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Total revenue is expected to be
$52 to $54 million ; -
Revenue from strategic growth areas and international is expected to be in the range of
$14-$15 million : - Gross margin is expected to be in the range of 76% to 77%;
-
Non-GAAP operating expenses are expected to be
$31 to $32 million , and exclude approximately$1.6 million in stock-based compensation expense; -
GAAP net income is expected to be
$5 to $6 million ; -
GAAP diluted net income per share is expected to be
$0.11 to $0.13 ; -
Non-GAAP net income is expected to be
$6 to $7 million ; -
Non-GAAP diluted net income per share is expected to be
$0.13 to $0.15 ; - Effective tax rate for the quarter is expected to be approximately 37%;
- Weighted-average diluted shares outstanding are expected to be approximately 44 million.
The above information concerning guidance for the fourth fiscal quarter ending
Conference Call
The company will host an investor conference call and live webcast at
Use of Non-GAAP Financial Measures
Forward - Looking Statements
This press release contains forward-looking statements that are based on
About
We aim to be everywhere people need us. Our partners are wireless carriers, automobile manufacturers and original equipment manufacturers (OEMs), app developers, advertisers and agencies, as well as enterprises large and small. Our partners include AT&T, Bell Mobility, Boost Mobile, China Mobile, Ford, NII Holdings,
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Copyright 2012 Telenav, Inc. All Rights Reserved. "
TNAV-F
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Condensed Consolidated Balance Sheets | ||
(in thousands) | ||
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|
|
Assets | (unaudited) | |
Current assets: | ||
Cash and cash equivalents | $ 27,635 | $ 24,053 |
Short-term investments | 182,179 | 179,257 |
Accounts receivable, net of allowances of |
||
March 31, 2012 and |
26,526 | 30,711 |
Deferred income taxes | 1,676 | 2,951 |
Prepaid expenses and other current assets | 13,431 | 9,654 |
Total current assets | 251,447 | 246,626 |
Property and equipment, net | 16,584 | 9,079 |
Deferred income taxes, non-current | 1,607 | 1,589 |
Deposits and other assets | 5,749 | 3,333 |
Total assets | $ 275,387 | $ 260,627 |
Liabilities and stockholders' equity | ||
Current liabilities: | ||
Accounts payable | $ 2,577 | $ 3,176 |
Accrued compensation | 8,409 | 7,847 |
Accrued royalties | 7,761 | 4,154 |
Other accrued expenses | 6,687 | 4,308 |
Deferred revenue | 26,880 | 48,490 |
Income taxes payable | 1,703 | 49 |
Total current liabilities | 54,017 | 68,024 |
Deferred rent, non-current | 7,785 | 8 |
Other long-term liabilities | 4,014 | 4,129 |
Stockholders' equity: | ||
Preferred stock, |
||
shares issued or outstanding | -- | -- |
Common stock, |
||
43,918 shares issued and 41,452 shares outstanding at March 31, 2012, and 42,984 shares issued and 41,823 shares outstanding at |
42 | 42 |
Additional paid-in capital | 117,851 | 115,064 |
Accumulated other comprehensive income | 419 | 537 |
Retained earnings | 91,259 | 72,823 |
Total stockholders' equity | 209,571 | 188,466 |
Total liabilities and stockholders' equity | $ 275,387 | $ 260,627 |
* Derived from audited consolidated financial statements as of and for the year ended |
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Condensed Consolidated Statements of Income | ||||
(in thousands, except per share amounts) | ||||
Three Months Ended |
Nine Months Ended |
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2012 | 2011 | 2012 | 2011 | |
(unaudited) | (unaudited) | |||
Revenue | $ 57,770 | $ 57,110 | $ 163,668 | $ 156,232 |
Cost of revenue | 14,793 | 12,739 | 35,054 | 30,419 |
Gross profit | 42,977 | 44,371 | 128,614 | 125,813 |
Operating expenses: | ||||
Research and development | 17,848 | 14,239 | 51,638 | 40,739 |
Sales and marketing | 8,839 | 6,699 | 24,689 | 17,229 |
General and administrative | 5,473 | 5,701 | 17,514 | 14,170 |
Total operating expenses | 32,160 | 26,639 | 93,841 | 72,138 |
Income from operations | 10,817 | 17,732 | 34,773 | 53,675 |
Interest income | 403 | 309 | 1,156 | 576 |
Other income (expense), net | 64 | (4) | 311 | 174 |
Income before provision for income taxes | 11,284 | 18,037 | 36,240 | 54,425 |
Provision for income taxes | 3,933 | 6,872 | 10,462 | 20,862 |
Net income | $ 7,351 | $ 11,165 | $ 25,778 | $ 33,563 |
Net income per share | ||||
|
$ 0.18 | $ 0.27 | $ 0.62 | $ 0.80 |
Diluted | $ 0.17 | $ 0.25 | $ 0.58 | $ 0.75 |
Weighted average shares used in computing net income per share | ||||
|
41,454 | 41,919 | 41,412 | 42,063 |
Diluted | 43,579 | 45,181 | 44,208 | 44,936 |
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Condensed Consolidated Statements of Cash Flows | ||
(in thousands) | ||
Nine Months Ended |
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2012 | 2011 | |
(unaudited) | ||
Operating activities | ||
Net income | $ 25,778 | $ 33,563 |
Adjustments to reconcile net income to net | ||
cash provided by operating activities: | ||
Depreciation and amortization | 6,025 | 7,449 |
Accretion of premium on short-term investments | 3,416 | 1,500 |
Stock-based compensation expense | 3,798 | 2,895 |
Write-off of capitalized software | -- | 691 |
Excess tax benefit from stock-based compensation | (799) | (513) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 4,185 | 9,569 |
Deferred income taxes | 2,016 | 248 |
Prepaid expenses and other current assets | (3,763) | (5,885) |
Other assets | (1,181) | 919 |
Accounts payable | (27) | (35) |
Accrued compensation | 562 | (215) |
Accrued royalties | 3,607 | 435 |
Accrued expenses and other liabilities | 1,843 | 2,220 |
Income taxes payable | 2,780 | (361) |
Deferred rent | 8,852 | (223) |
Deferred revenue | (21,899) | 60,734 |
Net cash provided by operating activities | 35,193 | 112,991 |
Investing activities | ||
Purchases of property and equipment | (13,058) | (4,074) |
Additions to capitalized software | (1,649) | (884) |
Purchases of short-term investments | (112,820) | (207,044) |
Proceeds from sales and maturities of short-term investments | 106,462 | 34,454 |
Acquisitions, net of cash acquired | (1,768) | -- |
Net cash used in investing activities | (22,833) | (177,548) |
Financing activities | ||
Proceeds from exercise of stock options | 1,843 | 1,107 |
Repurchase of common stock | (11,322) | (9,734) |
Excess tax benefit from stock-based compensation | 799 | 513 |
Net cash used in financing activities | (8,680) | (8,114) |
Effect of exchange rate changes on cash and cash equivalents | (98) | (73) |
Net increase (decrease) in cash and cash equivalents | 3,582 | (72,744) |
Cash and cash equivalents, at beginning of period | 24,053 | 112,862 |
Cash and cash equivalents, at end of period | $ 27,635 | $ 40,118 |
Supplemental disclosure of cash flow information | ||
Income taxes paid | $ 6,870 | $ 20,636 |
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Unaudited Reconciliation of Non-GAAP Adjustments | ||||
(in thousands except for per share amounts) | ||||
Three Months Ended |
Nine Months Ended |
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2012 | 2011 | 2012 | 2011 | |
GAAP net income | $ 7,351 | $ 11,165 | $ 25,778 | $ 33,563 |
Stock-based compensation: | ||||
Cost of revenue | 21 | 23 | 68 | 70 |
Research and development | 623 | 502 | 1,863 | 1,420 |
Sales and marketing | 312 | 291 | 846 | 671 |
General and administrative | 351 | 320 | 1,021 | 734 |
Total stock-based compensation | 1,307 | 1,136 | 3,798 | 2,895 |
Tax effect of adding back stock-based compensation | (188) | (147) | (499) | (310) |
Non-GAAP net income | $ 8,470 | $ 12,154 | $ 29,077 | $ 36,148 |
Non-GAAP net income per share | ||||
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$ 0.20 | $ 0.29 | $ 0.70 | $ 0.86 |
Diluted | $ 0.19 | $ 0.27 | $ 0.66 | $ 0.80 |
Weighted average shares used in computing non-GAAP net income per share | ||||
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41,454 | 41,919 | 41,412 | 42,063 |
Diluted | 43,579 | 45,181 | 44,208 | 44,936 |
CONTACT:Source:John Swenson Telenav, Inc. 408.990.1422 johnsw@telenav.com
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