July 29, 2010

TeleNav Reports Fourth Quarter and Fiscal 2010 Financial Results

Jul 29, 2010 (GlobeNewswire via COMTEX News Network) --

  --  Quarterly revenue increased 10 percent sequentially, 45 percent year
      over year, to $49.5 million with annual revenue growth of 54 percent to
      $171.2 million
  --  Average monthly paid subscribers for the fourth quarter reached 16.1
      million, up from 14.5 million in the prior quarter


SUNNYVALE, Calif., July 29, 2010 (GLOBENEWSWIRE) -- TeleNav, Inc. (Nasdaq:TNAV), a leading provider of location-based services, or LBS, including voice guided navigation on mobile phones, autos and enterprise LBS, today announced its financial results for the fourth quarter and fiscal year ended June 30, 2010.

Financial Highlights

  --  Record revenue for the fourth quarter of fiscal 2010 grew 45 percent
      over the prior year to $49.5 million.
  --  Net income for the fourth quarter of fiscal 2010 grew 3 percent over the
      prior year to $10.6 million.
  --  Record revenue for fiscal 2010 grew 54 percent year over year to $171.2
      million.
  --  Record net income for fiscal 2010 grew 40 percent year over year to
      $41.4 million.
  --  Cash generated from operations for the fourth quarter of fiscal 2010 was
      $24.7 million.
  --  Average monthly revenue per end user (ARPU) for the fourth quarter of
      fiscal 2010 decreased 13 percent over the fourth quarter of fiscal 2009
      to $1.03.
  --  Average monthly paying end users for the fourth quarter of fiscal 2010
      increased 69 percent year over year to 16.1 million.
  --  Completed initial public offering in May 2010 with approximately $44.6
      million in net proceeds to TeleNav, after underwriting commissions and
      discounts and offering expenses.


"In our first quarter as a public company, TeleNav is pleased to report solid financial results for the fourth quarter and fiscal 2010," said HP Jin, president, CEO and co-founder of TeleNav. "During fiscal 2010, TeleNav substantially increased its subscriber base and expanded its partnership with Ford Motor Company, paving the way for growth in our in-dash navigation segment. More recently, TeleNav expanded its U.S. carrier base with the addition of U.S. Cellular, the nation's sixth largest wireless carrier."

Revenue for the fourth quarter of fiscal 2010 was $49.5 million, compared to revenue of $45.1 million for the third quarter of fiscal 2010 and $34.3 million for the fourth quarter of fiscal 2009. Revenue for fiscal 2010 was $171.2 million, compared to revenue of $110.9 million in fiscal 2009.

Net income for the fourth quarter of fiscal 2010 was $10.6 million, or $0.24 per diluted share, compared to net income of $12.5 million, or $0.23 per diluted share, for the third quarter of fiscal 2010 and $10.3 million, or $0.20 per diluted share, for the fourth quarter of fiscal 2009. Net income for fiscal 2010 was $41.4 million, or $0.83 per diluted share, compared to net income of $29.6 million, or $0.57 per diluted share, in fiscal 2009.

Non-GAAP net income for the fourth quarter of fiscal 2010 was $13.0 million, or $0.31 per diluted share, compared to non-GAAP net income of $13.1 million, or $0.34 per diluted share, for the third quarter of fiscal 2010 and $10.5 million, or $0.28 per diluted share, for the fourth quarter of fiscal 2009. For fiscal 2010, non-GAAP net income was $45.2 million, or $1.16 per diluted share, compared to $30.1 million, or $0.82 per diluted share, in fiscal 2009. Our Non-GAAP net income excludes stock-based compensation expense net of the related tax effect. The shares used in the calculation of our non-GAAP net income per share assume the conversion of all outstanding preferred stock into shares of common stock using the as-if converted method as of the beginning of each period presented or the date of issuance, if later.

"Cash generated from operations of $44.5 million increased 93 percent year over year. Including the successful completion of TeleNav's initial public offering this quarter, TeleNav increased its cash and cash equivalents 241 percent year over year to $112.9 million as of June 30, 2010," said Douglas Miller, chief financial officer of TeleNav. "TeleNav's strengthened balance sheet positions us to further invest in our core LBS business, as well as other strategic initiatives such as in-dash navigation and mobile advertising."

Recent Business Highlights

  --  In July 2010, U.S. Cellular, the nation's sixth largest wireless
      carrier, selected TeleNav as a GPS navigation partner and launched Your
      Navigator Deluxe(TM), powered by TeleNav, on multiple smartphones.
  --  In May 2010, TeleNav announced the availability of the Sendum PT200
      tracking device for Sprint wireless enterprise customers using the
      TeleNav Asset Tracker platform. The device provides highly accurate
      location information allowing TeleNav Asset Tracker users to monitor the
      real-time location of assets, such as high-value packages, cargo or
      equipment, using a secure, Web-based portal.
  --  In April 2010, TeleNav announced the availability of TeleNav business
      mobility products for Verizon Wireless enterprise customers, which allow
      organizations' field personnel to manage their work and exchange data
      with back-office systems using their smartphones on the Verizon Wireless
      network.
  --  In March 2010, TeleNav unveiled the new version of TeleNav GPS
      Navigator(TM) with new features including one-touch speech recognition,
      lane assist, red light traffic camera and speed limit alerts, and
      navigation while out of wireless coverage areas.
  --  In March 2010, TeleNav introduced OnMyWay(TM), a new location-based
      mobile application that automatically alerts a pre-determined person or
      group of people of the sender's trip status and estimated time of
      arrival (ETA).
  --  In January 2010 during CES, Ford Motor Company announced that it would
      use TeleNav's automotive-grade GPS navigation software in its next
      generation of the Ford SYNC(TM) platform.


TeleNav's largest customer, Sprint, is in negotiations with TeleNav regarding potential amendment of its current contract, which expires as to TeleNav's right to be Sprint's exclusive provider of Sprint Navigation on December 31, 2010 and terminates on December 31, 2011. Sprint and TeleNav are currently in active discussions to amend material terms of that contract including an extension of the contract and TeleNav's preferred provider status, changes to the current per subscriber revenue model, and provisions for new revenue opportunities from premium products, advertising and mobile commerce. TeleNav anticipates that any extended agreement would result in declines in ARPU and significant reductions in total revenue from Sprint for bundled basic navigation services compared to the most recent quarter, but would also likely result in continued increases in the number of subscribers. TeleNav cannot predict whether or when it will reach agreement with Sprint on these matters or what the ultimate financial impact would be.

Business Outlook

TeleNav offers the following guidance for the first quarter ending September 30, 2010, which assumes no amendment to the Sprint agreement would be effective during the quarter ending September 30, 2010:

  --  Total revenue is expected to be approximately $50.0 million;
  --  Gross margins are expected to be 80 percent;
  --  Non-GAAP operating expenses are expected to increase 10% sequentially,
      and exclude approximately $800,000 in stock-based compensation;
  --  GAAP net income is expected to be approximately $10.0 million;
  --  GAAP diluted net income per share is expected to be approximately $0.22;
  --  Non-GAAP net income is expected to be approximately $11.0 million;
  --  Non-GAAP diluted net income per share is expected to be approximately
      $0.23;
  --  Effective tax rate is expected to be 41 percent;
  --  Weighted-average diluted shares outstanding are expected to be 45 to 46
      million.


The above information concerning the forecast for the quarter ending September 30, 2010 represents the company's outlook only as of the date hereof, and TeleNav undertakes no obligation to update or revise any financial forecast or other forward looking statements, as a result of new developments or otherwise.

Conference Call

The company will host an investor conference call and live webcast today at 2:00 p.m. PDT (5:00 p.m. EDT) to discuss its fourth quarter and fiscal year 2010 results and outlook for the first quarter of fiscal 2011. To access the conference call, dial 888-221-9466 or 913-312-6664 and enter pass code 5484800. The webcast will be accessible on TeleNav's investor relations website at http://investor.telenav.com/. A replay of the conference call will be available approximately two hours after its completion and will be available through Tuesday, August 3, 5:00 p.m. PDT. To access the replay, please dial 888-203-1112 or 719-457-0820 and enter pass code 5484800.

Use of Non-GAAP Financial Measures

TeleNav prepares its financial statements in accordance with generally accepted accounting principles for the United States (GAAP). The non-GAAP financial measures such as net income and earnings per share information for fiscal 2010 and the third and fourth quarter of fiscal 2010 and similar periods from the prior year included in this press release are different from those otherwise presented under GAAP. The following are explanations of each type of adjustment that we incorporate into non-GAAP financial measures:

Stock-based compensation expense relates to equity incentive awards granted to our employees, directors, and consultants accounted for under GAAP. Stock-based compensation expense has been and will continue to be a significant recurring expense for TeleNav. While we include the dilutive impact of such equity awards in weighted average shares outstanding, the expense associated with stock-based awards reflects a non-cash charge that we exclude from non-GAAP net income.

Our non-GAAP tax rate differs from the GAAP tax rate due to the elimination of the tax rate effect of the GAAP stock compensation expenses that are being eliminated to arrive at the non-GAAP expenses.

The shares used to compute non-GAAP basic and diluted net income per share include the assumed conversion of all outstanding shares of convertible preferred stock into shares of common stock using the as-if converted method as of the beginning of each period presented or the date of issuance, if later. In May 2010, in conjunction with the closing of our initial public offering, all of our outstanding preferred stock was converted into shares of our common stock.

TeleNav has provided these measures in addition to GAAP financial results because management believes these non-GAAP measures help provide a consistent basis for comparison between quarters and fiscal year growth rates that are not influenced by certain non-cash charges and therefore are helpful in understanding TeleNav's underlying operating results. These non-GAAP measures are some of the primary measures TeleNav's management uses for planning and forecasting. These measures are not in accordance with, or an alternative to, GAAP and these non-GAAP measures may not be comparable to information provided by other companies. Reconciliations of the GAAP to non-GAAP results are presented at the end of this press release.

The TeleNav, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7118

Forward Looking Statements

This press release contains forward-looking statements that are based on TeleNav's management's beliefs and assumptions and on information currently available to our management. Forward-looking statements include information concerning TeleNav's anticipated or assumed future results of operations, the anticipated outcome of current negotiations with Sprint to amend TeleNav's current contract, and the benefits of TeleNav's relationship with Ford and US Cellular. Actual events or results may differ materially from those described in this document due to a number of risks and uncertainties. These potential risks and uncertainties include, among others, fluctuations in TeleNav's quarterly and annual operating results; the amendments, if any, to TeleNav's agreement with Sprint; TeleNav's dependence on Sprint and AT&T for a substantial majority of its revenue; competition from other market participants who may provide comparable services to subscribers without charge; TeleNav's inexperience in the automotive navigation market; TeleNav's ability to estimate and sustain or increase its profitability; TeleNav's ability to attract, migrate and retain new wireless carriers and auto manufacturers; TeleNav's ability to issue new releases of its products and services and expand its product portfolio; changes to current accounting policies which may have a significant, adverse impact upon TeleNav's financial results; the introduction of new products by competitors or the entry of new competitors into the markets for TeleNav's services and products; the impact of current or future intellectual property litigation and claims for indemnification and economic and political conditions in the U.S. and abroad. We discuss these risks in greater detail in "Risk factors" and elsewhere in our Form S-1 and other filings with the U.S. Securities and Exchange Commission (SEC), which are available at the SEC's website at www.sec.gov. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Also, forward-looking statements represent our management's beliefs and assumptions only as of the date made. You should review our SEC filings carefully and with the understanding that our actual future results may be materially different from what we expect.

Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

About TeleNav, Inc.

TeleNav, Inc. is a leading provider of consumer location-based services (LBS), enterprise LBS and automotive LBS. TeleNav's solutions provide consumers, wireless service providers, enterprises and automakers with location-specific, real-time, personalized services such as GPS navigation, local search, mobile advertising, mobile commerce, location tracking and workflow automation. TeleNav's technology is available across more than 500 types of mobile phones, all major mobile phone operating systems and a broad range of wireless network protocols. TeleNav's service providers and partners include AT&T, Bell Mobility, Boost Mobile, China Mobile, Cincinnati Bell, Ford Motor Company, NII Holdings, Rogers, Sprint Nextel, Telcel, T-Mobile UK, T-Mobile USA, U.S. Cellular, Verizon Wireless and Vivo Brazil.

For more information on TeleNav, please visit www.telenav.com. Follow TeleNav on Twitter at www.twitter.com/telenav or on Facebook at www.facebook.com/telenav.

Copyright 2010 TeleNav, Inc. All Rights Reserved.

"TeleNav," the TeleNav logo, and "telenav.com" are registered and unregistered trademarks and/or service marks of TeleNav, Inc. Unless otherwise noted, all other trademarks, service marks, and logos used in this press release are the trademarks, service marks or logos of their respective owners.

TNAV-F

                       TeleNav, Inc.
           Condensed Consolidated Balance Sheets
         (in thousands, except per share amounts)


                                                6/30/2009
                                    6/30/2010       *
                                   -----------  ---------
  Assets                           (Unaudited)
  Current assets:
   Cash and cash equivalents         $ 112,862   $ 33,128
   Accounts receivable; net of
    allowances of $246 and $229,
    respectively                        37,322     23,938
   Deferred tax assets, current          2,004      2,053
   Prepaid expenses and other
    current assets                       3,020      2,872
                                   -----------  ---------
    Total current assets               155,208     61,991
   Property and equipment, net           9,637      6,615

   Deposits and other assets             9,744      3,604
                                   -----------  ---------

    Total assets                     $ 174,589   $ 72,210
                                   ===========  =========

  Liabilities, convertible
   preferred stock and
  stockholders' equity
   Current liabilities:
   Accounts payable                    $ 2,507    $ 2,115
   Accrued compensation                  5,583      3,784
   Accrued royalties                     2,988      3,335
   Other accrued expenses                2,721      1,875
   Deferred revenue                      6,746      3,472
   Warrant liabilities                      --      2,511

   Income taxes payable                  1,897         --
                                   -----------  ---------
    Total current liabilities           22,442     17,092
  Other liabilities                      3,110        374

  Convertible preferred stock:
   $0.001 par value: 23,358
    shares authorized, none, and
    23,084 shares
   issued and outstanding at June
    30, 2010 and 2009,
    respectively                            --     51,368

  Stockholders' equity:
   Preferred stock, $0.001 par
    value: 50,000 shares
    authorized; no shares
   issued and outstanding                   --         --
   Common stock, $0.001 par
    value: 600,000 shares
    authorized; 42,140 and 11,320

   shares issued and outstanding
    at June 30, 2010 and 2009,
    respectively                            42         11
   Additional paid-in capital          109,687      3,490
   Accumulated other
    comprehensive income                   399        404

   Retained earnings (deficit)          38,909      (529)
                                   -----------  ---------

   Total stockholders' equity          149,037      3,376
                                   -----------  ---------
   Total liabilities, convertible
    preferred stock and
    stockholders' equity             $ 174,589   $ 72,210
                                   ===========  =========



  * Derived from audited consolidated financial
   statements as of June 30, 2009





                                   TeleNav, Inc.
                   Condensed Consolidated Statements of Operations
                      (in thousands, except per share amounts)


                                    Three Months Ended        Fiscal Year Ended
                                 ------------------------  -----------------------

                                                                         6/30/2009
                                  6/30/2010    6/30/2009    6/30/2010        *
                                 -----------  -----------  -----------  ----------
                                 (Unaudited)  (Unaudited)  (Unaudited)

  Revenue                           $ 49,510     $ 34,254    $ 171,162   $ 110,880

  Cost of revenue                      8,351        6,477       29,481      20,250
                                 -----------  -----------  -----------  ----------
   Gross profit                       41,159       27,777      141,681      90,630

  Operating expenses:
   Research and development           13,473        7,224       41,556      23,500
   Sales and marketing                 4,674        4,506       17,197      16,536

   General and administrative          5,243        2,414       14,518       8,302
                                 -----------  -----------  -----------  ----------

    Total operating expenses          23,390       14,144       73,271      48,338
                                 -----------  -----------  -----------  ----------

  Income from operations              17,769       13,633       68,410      42,292

  Interest income                         41           45          114         268

  Other income (expense), net          (118)        (373)        (521)     (1,044)
                                 -----------  -----------  -----------  ----------
  Income before provision for
   income taxes                       17,692       13,305       68,003      41,516

  Provision for income taxes           7,080        2,972       26,593      11,898
                                 -----------  -----------  -----------  ----------

  Net income                        $ 10,612     $ 10,333     $ 41,410    $ 29,618
                                 ===========  ===========  ===========  ==========
  Net income applicable to
   common stockholders               $ 8,936      $ 5,558     $ 25,560    $ 15,719
                                 ===========  ===========  ===========  ==========
  Net income per share
   applicable to common
   stockholders:
    Basic                             $ 0.32       $ 0.49       $ 1.64      $ 1.39
    Diluted                           $ 0.24       $ 0.20       $ 0.83      $ 0.57
  Weighted average shares used
   in computing net income
  applicable to common
   stockholders:
    Basic                             27,624       11,306       15,569      11,273
    Diluted                           37,481       27,790       30,833      27,724


  * Derived from audited consolidated financial
   statements as of June 30, 2009



                             TeleNav, Inc.
            Condensed Consolidated Statements of Cash Flows
                             (in thousands)


                                                  Fiscal Year Ended
                                               ----------------------

                                                            6/30/2009
                                                6/30/2010       *
                                               -----------  ---------
                                               (Unaudited)
  Operating activities
  Net income                                      $ 41,410   $ 29,618
   Adjustments to reconcile net income to net
    cash provided by operating activities:
    Depreciation and amortization                    5,197      2,390
    Stock-based compensation expense                 4,927        507
    Loss on disposal of property and
     equipment                                          67         63
    Revaluation of preferred stock warrants            346        843
    Excess tax benefit from stock-based
     compensation                                    (375)         --
    Changes in operating assets and
     liabilities:
     Accounts receivable                          (13,384)    (9,385)
     Deferred income taxes                         (3,514)    (2,476)
     Prepaid expenses and other current
      assets                                         (148)    (2,196)
     Other assets                                  (1,243)      (908)
     Accounts payable                                  587        522
     Accrued compensation                            1,799      1,683
     Accrued royalties                               (347)      1,417
     Accrued expenses and other liabilities          3,410         59
     Income taxes payable                            2,272      (183)

     Deferred revenue                                3,446      1,086
                                               -----------  ---------

  Net cash provided by operating activities         44,450     23,040
                                               -----------  ---------

  Investing activities
   Purchases of property and equipment             (7,375)    (5,368)

   Addition to capitalized software                (2,440)    (1,626)
                                               -----------  ---------

   Net cash used in investing activities           (9,815)    (6,994)
                                               -----------  ---------

  Financing activities
   Proceeds from exercise of stock options             457         68
   Proceeds from initial public offering, net
    of issuance costs                               44,638         --
   Proceeds from exercise of Series E
    preferred stock warrants                           862         --
   Repurchase of common stock                      (1,228)         --
   Excess tax benefit from stock-based
    compensation                                       375         --
                                               -----------  ---------

   Net cash provided by financing activities        45,104         68
                                               -----------  ---------

   Effect of exchange rate changes on cash
    and cash equivalents                               (5)        164
                                               -----------  ---------
   Net increase in cash and cash equivalents        79,734     16,278
   Cash and cash equivalents, at beginning of
    period                                          33,128     16,850
                                               -----------  ---------
   Cash and cash equivalents, at end of
    period                                       $ 112,862   $ 33,128
                                               ===========  =========

  Supplemental disclosure of cash flow
   information
  Income taxes paid                               $ 23,737   $ 15,916



  * Derived from audited consolidated financial statements
   as of June 30, 2009




                                            TeleNav, Inc.
                           Unaudited Reconciliation of Non-GAAP Adjustments
                             (in thousands except for per share amounts)


                                                     Three Months Ended         Fiscal Year Ended
                                              -------------------------------  --------------------

                                              6/30/2010  3/31/2010  6/30/2009  6/30/2010  6/30/2009
                                              ---------  ---------  ---------  ---------  ---------

  GAAP net income                              $ 10,612   $ 12,541   $ 10,333   $ 41,410   $ 29,618
  Stock-based compensation:
   Cost of revenue                                    4          7          1         18          4
   Research and development                       1,863        320         97      2,604        237
   Sales and marketing                              170        139         48        516        155

   General and administrative                     1,443        144         33      1,789        111
                                              ---------  ---------  ---------  ---------  ---------
   Total stock-based compensation                 3,480        610        179      4,927        507
  Tax effect of adding back stock
   compensation                                 (1,111)        (9)       (13)    (1,132)       (38)
                                              ---------  ---------  ---------  ---------  ---------

  Non-GAAP net income                          $ 12,981   $ 13,142   $ 10,499   $ 45,205   $ 30,087
                                              =========  =========  =========  =========  =========

  Shares used in computing GAAP basic net
   income per share                              27,624     11,567     11,306     15,569     11,273
  Weighted average effect of the assumed
   conversion of convertible preferred stock
   on the original dates of issuance             11,031     23,345     23,084     20,161     23,084
                                              ---------  ---------  ---------  ---------  ---------
  Shares used in computing non-GAAP basic
   net income per share                          38,655     34,912     34,390     35,730     34,357
                                              =========  =========  =========  =========  =========

  Shares used in computing GAAP diluted net
   income per share                              37,481     29,191     27,790     30,833     27,724
  Weighted average effect of the assumed
   conversion of convertible preferred stock
   on the original dates of issuance              4,424      9,362      9,101      8,014      9,101
                                              ---------  ---------  ---------  ---------  ---------
  Shares used in computing non-GAAP diluted
   net income per share                          41,905     38,553     36,891     38,847     36,825
                                              =========  =========  =========  =========  =========

  Non-GAAP basic net income per share            $ 0.34     $ 0.38     $ 0.31     $ 1.27     $ 0.88
  Non-GAAP diluted net income per share          $ 0.31     $ 0.34     $ 0.28     $ 1.16     $ 0.82

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: TeleNav, Inc.

CONTACT:  TeleNav, Inc.
Media Contacts:
Mary Beth Lowell
425.531.0122
marybethl@telenav.com
The Blueshirt Group (for TeleNav)
Investor Relations:
Cynthia Hiponia
408.990.1265
IR@telenav.com

(C) Copyright 2010 GlobeNewswire, Inc. All rights reserved.

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