Sunnyvale, California — October 27, 2011 — TeleNav, Inc. (NASDAQ:TNAV), one of the largest global wireless location-based services providers, today announced its financial results for the first quarter of fiscal 2012 ended September 30, 2011.
"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 $8.2 million, or $0.18 per diluted share, compared to net income of $12.4 million, or $0.27 per diluted share, for the first quarter of fiscal 2011.
Non-GAAP net income for the first quarter of fiscal 2012 was $9.2 million, or $0.20 per diluted share, compared to non-GAAP net income of $13.2 million, or $0.29 per diluted share, for the first quarter of fiscal 2011. Non-GAAP net income excludes stock-based compensation expense net of the related tax effect.
In the first quarter of fiscal 2012, TeleNav completed its $20 million stock repurchase plan authorized in November 2010. The company repurchased a total of 2,037,743 shares of its common stock for an aggregate cost of approximately $20 million under this plan.
Today, TeleNav announced that its board of directors has authorized a second repurchase plan, allowing the company to repurchase up to $20 million, inclusive of broker fees, of its common stock, in compliance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The timing and amount of repurchase transactions under this program will depend on market conditions and other considerations. All of the repurchases will be funded by TeleNav's available working capital and the duration of the repurchase program is 12 months, although it may be increased, extended, suspended or discontinued without prior notice.
Recent Business Highlights
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 December 31, 2011:
For the fiscal year ending June 30, 2012:
The above information concerning the forecast for the second fiscal quarter ending December 31, 2011 and fiscal 2012 represents TeleNav'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.
TeleNav will host an investor conference call and live webcast today at 2:00 p.m. PDT (5:00 p.m. EDT) to discuss its first quarter fiscal 2012 results and outlook for the second quarter and full year of fiscal 2012. To access the conference call, dial 888-254-3601 or 913-312-1516. 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, November 1, 2011, 5:00 p.m. PDT. To access the replay, please dial 888-203-1112 or 719-457-0820 and enter pass code 2449593.
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 net income and 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 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 US 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 June 30, 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.