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Financial Highlights
"Today's Delphi announcement strengthens our leadership in automotive navigation and search as we continue to expand our partnerships with global automakers," said HP Jin, president, CEO and co-founder of TeleNav. "In our core navigation business, we grew total subscribers in carrier bundle offerings, subscriber paid offerings, and our freemium offerings. We are also pleased to remain a top navigation application provider on the iPhone platform, both in the free and paid categories."
Net income for the first quarter of fiscal 2012 was
Non-GAAP net income for the first quarter of fiscal 2012 was
In the first quarter of fiscal 2012, TeleNav completed its
Today, TeleNav announced that its board of directors has authorized a second repurchase plan, allowing the company to repurchase up to
Recent Business Highlights
Business Outlook
TeleNav offers the following guidance, which is predicated on management's judgments and assumes no changes in current contractual relationships with significant carrier partners.
For the second quarter of fiscal 2012 ending
- Total revenue is expected to be
$50.0 to $52.0 million ;- Gross margin is expected to be approximately 79 to 80 percent;
- Non-GAAP operating expenses are expected to be
$30.0 to $31.0 million , and excludes approximately$1.5 million in stock-based compensation;- GAAP net income is expected to be
$5.0 to $6.0 million ;- GAAP diluted net income per share is expected to be
$0.11 to $0.13 ;- Non-GAAP net income is expected to be
$6.0 to $7.0 million ;- Non-GAAP diluted net income per share is expected to be
$0.13 to $0.15 ;- Effective tax rate is expected to be approximately 37 percent
- Weighted-average diluted shares outstanding are expected to be approximately 45 million.
For the fiscal year ending
- Total revenue is expected to be
$215.0 to $225.0 million ;- Gross margin is expected to be approximately 76 to 77 percent;
- Non-GAAP operating expenses are expected to be
$119.0 to $123.0 million , and excludes approximately$6.0 million in stock-based compensation;- GAAP net income is expected to be
$24.0 to $28.0 million ;- GAAP diluted net income per share is expected to be
$0.53 to $0.61 ;- Non-GAAP net income is expected to be
$28.0 to $32.0 million ;- Non-GAAP diluted net income per share is expected to be
$0.62 to $0.70 ;- Weighted-average diluted shares outstanding are expected to be approximately 45 to 46 million.
The above information concerning the forecast for the second fiscal quarter ending
Conference Call
TeleNav will host an investor conference call and live webcast today at
Use of Non-GAAP Financial Measures
TeleNav prepares its financial statements in accordance with generally accepted accounting principles for
Stock-based compensation expense relates to equity incentive awards granted to our employees, directors, and consultants. Stock-based compensation expense has been and will continue to be a significant recurring non-cash 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 effect of the GAAP stock compensation expenses that are being eliminated to arrive at the non-GAAP expenses.
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.
Forward - Looking Statements
This press release contains forward-looking statements that are based on TeleNav 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 financial results, shares outstanding and anticipated business activities. 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; TeleNav's dependence on Sprint, AT&T, and Ford for a substantial majority of its revenue; changes in the contractual relationships with Sprint, AT&T and other wireless carriers to whom TeleNav provides services, as have occurred in the past; competition from other market participants who may
provide comparable services to subscribers without charge; TeleNav's short history in the automotive navigation market; continued production of vehicles with and adoption by auto buyers of TeleNav's products offered by Ford and the products offered by Delphi's customer; the timing of new product releases and vehicle production by our automotive customers; TeleNav's ability to increase revenue from premium services; TeleNav's inexperience in the mobile advertising market; TeleNav's ability to estimate and sustain or increase its revenue and profitability; TeleNav's ability to attract, migrate and retain new wireless carriers and auto manufacturers and automotive equipment suppliers; TeleNav's ability to issue new releases of its products and services and expand its product portfolio; changes to current accounting standards 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 litigation related to U.S securities laws 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 Annual Report on Form 10-K for the fiscal year ended
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 with more than 26 million paying subscribers as of
The TeleNav, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=7118
For more information on TeleNav, please visit www.telenav.com. Follow TeleNav on Twitter at www.twitter.com/telenav or on
Copyright 2011 TeleNav, Inc. All Rights Reserved.
"TeleNav," the TeleNav logo, "telenav.com" and "TeleNav GPS Navigator" 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. | ||
| Consolidated Balance Sheets | ||
| (in thousands) | ||
|
|
|
|
| Assets | (unaudited) | |
| Current assets: | ||
| Cash and cash equivalents | $ 32,141 | $ 24,053 |
| Short-term investments | 161,080 | 179,257 |
|
Accounts receivable, net of allowances of |
20,983 | 30,711 |
| Prepaid expenses and other current assets | 11,472 | 9,654 |
| Deferred tax assets | 2,912 | 2,951 |
| Total current assets | 228,588 | 246,626 |
| Property and equipment, net | 12,055 | 9,079 |
| Deferred tax assets, non-current | 2,129 | 1,589 |
| Deposits and other assets | 5,104 | 3,333 |
| Total assets | $ 247,876 | $ 260,627 |
| Liabilities and stockholders' equity | ||
| Current liabilities: | ||
| Accounts payable | $ 5,097 | $ 3,176 |
| Accrued compensation | 6,757 | 7,847 |
| Accrued royalties | 3,062 | 4,154 |
| Other accrued expenses | 4,251 | 4,308 |
| Deferred revenue | 30,281 | 48,490 |
| Income taxes payable | 1,060 | 49 |
| Total current liabilities | 50,508 | 68,024 |
| Other liabilities | 6,147 | 4,137 |
| Stockholders' equity: | ||
|
Preferred stock, shares issued or outstanding |
-- | -- |
|
Common stock, 43,230 shares issued and 41,192 outstanding at and 42,984 issued and 41,823 outstanding at |
41 | 42 |
| Additional paid-in capital | 115,120 | 115,064 |
| Accumulated other comprehensive income | 386 | 537 |
| Retained earnings | 75,674 | 72,823 |
| Total stockholders' equity | 191,221 | 188,466 |
| Total liabilities and stockholders' equity | $ 247,876 | $ 260,627 |
|
* Derived from audited consolidated financial statements as of and for the year ended |
||
| TeleNav, Inc. | ||
| Consolidated Statements of Income | ||
| (in thousands, except per share amounts) | ||
|
Three Months Ended |
||
| 2011 | 2010 | |
| (unaudited) | ||
| Revenue | $ 52,732 | $ 51,100 |
| Cost of revenue | 10,316 | 8,852 |
| Gross profit | 42,416 | 42,248 |
| Operating expenses: | ||
| Research and development | 16,479 | 13,027 |
| Sales and marketing | 7,467 | 4,726 |
| General and administrative | 6,250 | 3,746 |
| Total operating expenses | 30,196 | 21,499 |
| Income from operations | 12,220 | 20,749 |
| Interest income | 382 | 97 |
| Other income (expense), net | 110 | 100 |
| Income before provision for income taxes | 12,712 | 20,946 |
| Provision for income taxes | 4,528 | 8,588 |
| Net income | $ 8,184 | $ 12,358 |
| Net income per share | ||
| Basic | $ 0.20 | $ 0.29 |
| Diluted | $ 0.18 | $ 0.27 |
|
Weighted average shares used in computing net income per share |
||
| Basic | 41,550 | 42,151 |
| Diluted | 45,006 | 44,939 |
| TeleNav, Inc. | ||
| Consolidated Statements of Cash Flows | ||
| (in thousands) | ||
|
Three Months Ended |
||
| 2011 | 2010 | |
| (unaudited) | ||
| Operating activities | ||
| Net income | $ 8,184 | $ 12,358 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
||
| Depreciation and amortization | 2,159 | 1,843 |
| Accretion of premium on short-term investments | 1,132 | 95 |
| Stock-based compensation expense | 1,180 | 852 |
| Write-off of capitalized software | -- | 691 |
| Excess tax benefit from stock-based compensation | (521) | -- |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | 9,728 | (19,944) |
| Deferred income taxes | 258 | 332 |
| Prepaid expenses and other current assets | (1,802) | (1,030) |
| Other assets | (712) | (838) |
| Accounts payable | 199 | (1,152) |
| Accrued compensation | (1,090) | (1,484) |
| Accrued royalties | (1,092) | 614 |
| Accrued expenses and other liabilities | 2,032 | 449 |
| Income taxes payable | 1,717 | 4,840 |
| Deferred revenue | (18,336) | 22,622 |
| Net cash provided by operating activities | 3,036 | 20,248 |
| Investing activities | ||
| Purchases of property and equipment | (2,816) | (1,512) |
| Additions to capitalized software | (615) | (340) |
| Purchases of short-term investments | (28,024) | (81,128) |
| Proceeds from sales and maturities of short-term investments | 44,962 | -- |
| Acquisitions, net of cash acquired | (1,768) | -- |
| Net cash provided by (used in) investing activities | 11,739 | (82,980) |
| Financing activities | ||
| Proceeds from exercise of stock options | 769 | 44 |
| Repurchase of common stock | (7,933) | -- |
| Excess tax benefit from stock-based compensation | 521 | -- |
| Net cash (used in) provided by financing activities | (6,643) | 44 |
| Effect of exchange rate changes on cash and cash equivalents | (44) | (89) |
| Net increase (decrease) in cash and cash equivalents | 8,088 | (62,777) |
| Cash and cash equivalents, at beginning of period | 24,053 | 112,862 |
| Cash and cash equivalents, at end of period | $ 32,141 | $ 50,085 |
| Supplemental disclosure of cash flow information | ||
| Income taxes paid | $ 1,266 | $ 3,026 |
| TeleNav, Inc. | |||
| Unaudited Reconciliation of Non-GAAP Adjustments | |||
| (in thousands except for per share amounts) | |||
|
Three Months Ended |
|||
| 2011 | 2010 | ||
| GAAP net income | $ 8,184 | $ 12,358 | |
| Stock-based compensation: | |||
| Cost of revenue | 27 | 25 | |
| Research and development | 602 | 493 | |
| Sales and marketing | 215 | 151 | |
| General and administrative | 336 | 183 | |
| Total stock-based compensation | 1,180 | 852 | |
| Tax effect of adding back stock-based compensation | (141) | (57) | |
| Non-GAAP net income | $ 9,223 | $ 13,153 | |
| Non-GAAP net income per share | |||
| Basic | $ 0.22 | $ 0.31 | |
CONTACT: Media Contacts:
Mary Beth Lowell
TeleNav, Inc.
425-531-0122
marybethl@telenav.com
Investor Relations:
Cynthia Hiponia
The Blueshirt Group (for TeleNav)
408-990-1265
IR@telenav.com
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