Sunnyvale, California – July 28, 2011 –TeleNav, Inc. (NASDAQ:TNAV), one of the largest global wireless location-based services providers, today announced its financial results for the fourth quarter and fiscal year ended June 30, 2011.
"Our investments in our strategic growth areas have continued to generate positive results. Revenue from automotive, enterprise LBS, mobile advertising and commerce, and premium LBS comprised 17% of total revenue in the June quarter, ahead of our previous expectations of 13%," said HP Jin, president, CEO and co-founder of TeleNav. "With continued investment and focus, we expect to grow revenue in these categories, both in absolute dollars and as a percentage of total revenue."
Net income for the fourth quarter of fiscal 2011 was $9.0 million, or $0.20 per diluted share, compared to net income of $11.2 million, or $0.25 per diluted share, for the third quarter of fiscal 2011 and $10.6 million, or $0.24 per diluted share, for the fourth quarter of fiscal 2010. Net income for fiscal 2011 was $42.6 million, or $0.94 per diluted share, compared to net income of $41.4 million, or $0.83 per diluted share, in fiscal 2010.
Non-GAAP net income for the fourth quarter of fiscal 2011 was $10.1 million, or $0.22 per diluted share, compared to non-GAAP net income of $12.2 million, or $0.27 per diluted share, for the third quarter of fiscal 2011 and $13.0 million, or $0.31 per diluted share, for the fourth quarter of fiscal 2010. For fiscal 2011, non-GAAP net income was $46.3 million, or $1.03 per diluted share, compared to $45.1 million, or $1.16 per diluted share, in fiscal 2010. TeleNav's Non-GAAP net income excludes stock-based compensation expense net of the related tax effect. The shares used in the calculation of 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, cash equivalents, and short-term investments were $203.3 million as of June 30, 2011. Cash utilized from operations for the fourth quarter of fiscal 2011 was $6.3 million.
Recent Business Highlights
TeleNav offers the following guidance for the quarter ending September 30, 2011:
TeleNav offers the following guidance for the fiscal year ending June 30, 2012:
The above information concerning the forecasts for the quarter ending September 30, 2011 and the fiscal year ending June 30, 2012 represent 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.
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 2011 results and outlook for the first quarter of fiscal 2012. To access the conference call, dial 888-806-6203 or 913-312-1509 and enter pass code 8294057. The webcast will be accessible on TeleNav's investor relations website at 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 2, 5:00 p.m. PDT. To access the replay, please dial 888-203-1112 or 719-457-0820 and enter pass code 8294057.
Use of Non-GAAP Financial Measures
TeleNav prepares its financial statements in accordance with generally accepted accounting principles for the United States, or GAAP. The non-GAAP financial measures such as non-GAAP net income and non-GAAP earnings per share information 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. Stock-based compensation expense has been and will continue to be a significant recurring noncash 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 noncash 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.
The shares used to compute non-GAAP basic and diluted net income per share for fiscal 2010 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.
For purposes of calculating non-GAAP basic net income per share, we excluded from the fiscal 2010 calculations of net income applicable to common shareholders the accretion costs of dividends on certain convertible preferred 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 noncash 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'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 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 and AT&T 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; competition from other market participants who may provide comparable services to subscribers without charge; TeleNav's inexperience in the automotive navigation market; continued production of vehicles with and adoption by auto buyers of TeleNav's products offered by Ford; TeleNav's ability to offer premium services successfully; TeleNav's inexperience in the mobile advertising market; TeleNav's ability to successfully offer and achieve customer acceptance of its non-US navigation offerings; TeleNav's ability to grow its enterprise business; 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 US and abroad. We discuss these risks in greater detail in "Risk factors" and elsewhere in our Quarterly Report on Form 10-Q for the three months ended March 31, 2011 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.
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 September 30, 2011. TeleNav's services 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 1,300 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, QNX Software Systems, Rogers, Sprint Nextel, Telcel, T-Mobile UK, T-Mobile USA, U.S. Cellular, Verizon Wireless and Vivo Brazil.