Telenav Reports Third Quarter Fiscal 2013 Financial Results

Telenav Reports Third Quarter Fiscal 2013 Financial Results

Strategic growth and international revenue more than doubled year over year
and was 58 percent of total revenue and included automotive revenue of 46
percent

SUNNYVALE, Calif., April 25, 2013 (GLOBE NEWSWIRE) -- Telenav®, Inc.
(Nasdaq:TNAV), the leader in personalized navigation, today announced its
financial results for the third quarter of fiscal 2013 ended March 31, 2013.

"We achieved solid financial results in the third quarter, driven primarily by
strength in our automotive business, which accounted for 46 percent of total
revenue in the period," said HP Jin, chairman, president and CEO of Telenav.
"In addition, this month we completed the sale of our Enterprise business,
which enables us to focus more resources on the targeted revenue growth
opportunities in our automotive, mobile advertising, and premium LBS."

We have classified the results of operations of our Enterprise business as
discontinued operations in our income statement for all periods presented.

Financial Highlights

  *Revenue from continuing operations for the third quarter of fiscal 2013
    was $55.0 million, which excluded approximately $2.8 million in revenue
    from the discontinued operations of our Enterprise business. This compared
    with $47.2 million of revenue from continuing operations in the prior
    sequential quarter and $54.5 million in the third quarter of fiscal 2012.
  *Revenue from continuing operations stemming from strategic growth areas
    and international revenue was $32.1 million, which compared with $21.9
    million in the prior sequential quarter and $14.9 million in the same
    quarter one year ago. Strategic growth and international revenue from
    continuing operations represented 58 percent of total revenue from
    continuing operations for the third quarter of fiscal 2013, up from 46
    percent for the second quarter of fiscal 2013, and up 115 percent from the
    third quarter of fiscal 2012. Automotive revenue was $25.3 million, or 46
    percent of total revenue from continuing operations, for the third quarter
    of fiscal 2013.
  *GAAP net income from continuing operations for the third quarter of fiscal
    2013 was $3.8 million, or $0.09 per diluted share, which compared with
    GAAP net income from continuing operations of $0.4 million, or $0.01 per
    diluted share, in the second quarter of fiscal 2013 and GAAP net income
    from continuing operations of $7.1 million, or $0.16 per diluted share,
    for the third quarter of fiscal 2012.
  *Non-GAAP net income from continuing operations for the third quarter of
    fiscal 2013 was $6.9 million, or $0.17 per diluted share, which compared
    with $4.2 million, or $0.10 per diluted share, in the second quarter of
    fiscal 2013 and $8.7 million, or $0.20 per diluted share, in the third
    quarter of fiscal 2012. Non-GAAP net income from continuing operations and
    non-GAAP net income from continuing operations per diluted share excludes
    stock-based compensation expense, net income from discontinued operations,
    legal settlement costs and amortization expense of capitalized software
    and developed technology, net of tax.
  *Adjusted EBITDA from continuing operations (earnings before interest,
    taxes, depreciation, amortization, stock-based compensation expense, and
    income from discontinued operations) for the third quarter of fiscal 2013
    was $8.8 million, which compared with $6.5 million in the prior sequential
    quarter and $13.8 million in the same quarter a year ago.
  *Ending cash, cash equivalents and short-term investments were $187.5
    million and Telenav had no debt as of March 31, 2013. This represented
    $4.73 per share, based on approximately 39.7 million shares of outstanding
    common stock as of March 31, 2013.

Recent Business Highlights

  *In April 2013, Telenav and Sprint agreed to extend the fixed fee
    arrangement related to the Sprint bundles for an additional $3.6 million
    for three months through September 30, 2013.
  *In the March quarter, Ford began shipping cars which include the Telenav
    navigation solution to China showroom floors and Telenav recognized more
    than $1 million in royalties from these shipments.
  *In April 2013, Telenav announced Scout for Cars: Built-in, which is a
    connected and embedded product that integrates in-dash navigation with
    mobile and cloud services for real-time, personalized information. Scout
    for Cars: Built-in combines technologies from Telenav's embedded and
    smartphone products to provide a consistent and personalized experience,
    whether a driver is using Scout on a phone or in a car.
  *In April 2013, Scout Advertising released data mined across its search and
    navigation infrastructure about location and driving behavior in 15 cities
    across the US to understand the distances consumers drive to get to
    various types of businesses. The entire data set is available on Telenav's
    website. The differences in consumer preferences and behavior and the
    company's ability to mine the massive amounts of data available from
    various sources present a unique capability to refine our advertising
    platforms and improve return on investment for local advertisers.
  *In February 2013, Telenav launched new features on Scout for iPhone that
    make it easy for users to plan with friends by sharing locations and turn
    by turn navigation. The app store ratings for Scout for iPhone averaged
    4.5 stars throughout the third quarter of fiscal 2013.
  *In March 2013, Telenav announced that its board of directors authorized
    the company to repurchase up to $10 million, inclusive of broker fees, of
    its common stock under a share repurchase program, in compliance with Rule
    10b-18 of the Securities Exchange Act of 1934, as amended. Telenav
    completed its prior stock repurchase plan for $20 million in the second
    quarter of fiscal 2013.
  *In April 2013, Telenav completed the sale of its Enterprise business to
    FleetCor Technologies Operating Company, LLC, or FleetCor, for aggregate
    proceeds of approximately $10 million.

Business Outlook

For the fourth fiscal quarter ending June 30, 2013, Telenav offers the
following guidance, which is predicated on management's judgments.

In April 2013, Telenav and Sprint agreed to extend their bundle agreement
through September 30, 2013. Because of the manner in which Telenav recognizes
revenue for bundled services to Sprint, the extension of the agreement with
Sprint by 90 days requires Telenav to recognize some revenue that otherwise
would have been recognized in the fourth quarter of fiscal 2013 in the first
quarter of fiscal 2014. As a result, Sprint bundle revenue for the fiscal
fourth quarter 2013 and fiscal first quarter 2014 will be approximately $5.5
million for each quarter.

Telenav's guidance is provided for continuing operations unless otherwise
stated.

  *Total revenue from continuing operations is expected to be $41 to $43
    million;
  *Revenue from continuing operations from strategic growth areas and
    international is expected to be 55 to 60 percent of total revenue;
  *GAAP gross margin from continuing operations is expected to be 63 to 64
    percent;
  *Non-GAAP gross margin from continuing operations is expected to be 65 to
    66 percent, and excludes adjustments such asthe amortization of
    capitalized software and developed technology of approximately $1 million;
  *GAAP operating expenses from continuing operations are expected to be $30
    to $31 million;
  *Non-GAAP operating expenses from continuing operations are expected to be
    $27 to $28 million;
  *GAAP net loss from continuing operations is expected to be ($1) to ($2)
    million; excluding net income of approximately $6 million gain on the sale
    of the Enterprise business;
  *GAAP diluted net loss per share from continuing operations is expected to
    be ($0.02) to ($0.05);
  *Non-GAAP net incomefrom continuing operationsis expected to be $2 to $3
    million, and excludes the tax effected impact of approximately $3 million
    of stock-based compensation expense, approximately $1.0 million of
    capitalized software and developed technology amortization expenses, and
    approximately a $9.5 million gain on the sale of the Enterprise business;
  *Non-GAAP diluted net income per share from continuing operationsis
    expected to be $0.05 to $0.07;
  *Adjusted EBITDA from continuing operations (earnings before interest,
    taxes, depreciation, amortization, stock-based compensation expense, and
    gain on the sale of the Enterprise business) is expected to be $1.5 to
    $2.5 million, and excludes the impact of approximately $3 million in
    stock-based compensation expenses, approximately $2.5 million of
    depreciation and amortization expenses, and approximately a $9.5 million
    gain on the sale of the Enterprise business; and
  *Weighted average diluted shares outstanding are expected to be
    approximately 41 million.

For the fiscal year ending June 30, 2013, Telenav offers the following
guidance:

  *Total revenue from continuing operations is expected to be $186 to $188
    million, reflecting the exclusion of $9.6 million in revenue earned in the
    nine months ended March 31, 2013 on the discontinued operations from the
    sale of the Enterprise business in April 2013;
  *Revenue from continuing operations from strategic growth areas and
    international is expected to be approximately 50 percent of total revenue
    from continuing operations for the fiscal year and reflects the exclusion
    of $9.6 million in revenue earned in the nine months ended March 31, 2013
    on the discontinued operations from the sale of the Enterprise business in
    April 2013;
  *GAAP gross margin from continuing operations is expected to be
    approximately 65 percent;
  *GAAP net income from continuing operations is expected to be $4 million to
    $5 million, excluding net income from discontinued operations of
    approximately $7 million;
  *GAAP diluted net income from continuing operations per share is expected
    to be $0.11 to $0.13;
  *Non-GAAP net income from continuing operationsis expected to be $17 to
    $18 million, and excludes the tax effected impact of approximately $9.5
    million of stock-based compensation expense, approximately $4 million of
    capitalized software and developed technology amortization, expenses, an
    approximately $1.3 million of the legal settlement, and approximately $11
    million of income from discontinued operations;
  *Non-GAAP diluted net income from continuing operationsper share is
    expected to be $0.42 to $0.44;
  *Adjusted EBITDA from continuing operations(earnings before interest,
    taxes, depreciation, amortization, stock-based compensation expense, legal
    settlements,gain from the sale of the Enterprise business,and income
    from discontinued operations) is expected to be $23 to $24 million, and
    excludes the impact of approximately $9.5 million in stock-based
    compensation expenses, and approximately $9 million of depreciation and
    amortization expenses, and approximately $11 million of income from
    discontinued operations; and
  *Weighted average diluted shares outstanding are expected to be
    approximately 42 million.

Fiscal 2014

Telenav does not anticipate operating cost reductions in fiscal 2014 and
therefore expects to incur losses in fiscal 2014.

The above information concerning guidance represents Telenav's outlook only as
of the date hereof, and is subject to change as a result of amendments to
material contracts and other changes in business conditions. 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 at 2:00
p.m. PT (5:00 p.m. ET) today. To access the conference call, dial 888-504-7963
(toll-free, domestic only) or 719-457-2697 (domestic and international toll)
and enter passcode 7356060. 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 for two weeks beginning approximately two
hours after its completion. To access the replay, please dial 888-203-1112
(toll-free domestic only) or 719-457-0820 (international or domestic toll) and
enter passcode 7356060.

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 from continuing operations,
non-GAAP net income from continuing operations per share,and adjusted EBITDA
from continuing operations included in this press release are different from
those otherwise presented under GAAP.

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 periods that are not influenced by certain
non-cash or other 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.

The following are explanations of each type of adjustment that we incorporate
into non-GAAP financial measures: Non-GAAP net income from continuing
operationsmeasures GAAP net income from continuing operationsexcluding the
impact of stock-based compensation expense, capitalized software and developed
technology amortization expenses, and other items such as legal settlements,
net of taxes. 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 from continuing operations, non-GAAP net income from
continuing operationsper share, and adjusted EBITDA from continuing
operations.Capitalized software amortization expense represents internal
software costs that are previously capitalized and charged to expense as the
software is used in our operations.Developed technology amortization expense
relates to the amortization of acquired intangible assets. Legal settlements
excluded represent settlements from patent litigation cases in which we are
defendants and royalty disputes. Our non-GAAP tax rate from continuing
operationsdiffers from the GAAP tax rate from continuing operationsdue to
the elimination of any tax effect of the GAAP stock-based compensation
expenses, capitalized software and developed technology amortization expenses,
legal settlements, and other items that are being eliminated to arrive at the
non-GAAP net income from continuing operations.

Adjusted EBITDA from continuing operations measures our GAAPnet income
excluding the impact of stock-based compensation expense, net income from
discontinued operations, depreciation, amortization, and other items such as
legal settlements. We believe this is a useful measure of profitability before
the impact of certain non-cash expenses, interest income, income taxes, and
certain other items that management believes affect the comparability of
operating results.

To reconcile the historical GAAP net income to non-GAAP net income from
continuing operationsand non-GAAP net income from continuing operationsper
share from continuing operations, add back the indicated amounts of
stock-based compensation expense, capitalized software and developed
technology amortization expenses, legal settlements, and other applicable
items, net of tax. To reconcile the historical GAAP net income to adjusted
EBITDA from continuing operations, add back the indicated amounts of
stock-based compensation expense, depreciation and amortization expenses,
interest income, other income (expense), provision for income taxes, net
income discontinued operations, and other applicable items.

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 and
shares outstanding, the success of its efforts with its auto manufacturer
customers and launch of vehicles containing the results of those
collaborations, the continued adoption and success of Scout for iPhone, and
the adoption and success of Scout for Cars and the success of its efforts to
develop an advertising business. 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 Ford, 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, as have occurred in the past and
the anticipated cessation of bundled services revenue from Sprint as of
October 1, 2013; automotive manufacturers and automotive equipment suppliers
("OEMs") and consumer acceptance of Scout by Telenav, Scout for Cars and other
Scout applications; Telenav's success in achieving additional design wins from
OEMs and automotive manufacturers and the delivery dates of automobiles with
Telenav's products incorporated; Telenav's inexperience in the mobile
advertising market; Telenav incurring losses; 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 other automotive OEMs;
the timing of new product releases and vehicle production by our automotive
customers; Telenav's ability to increase revenue from premium services and
international markets; successful conversion of freemium users to paid
subscribers; Telenav's ability to successfully integrate and manage the
operations and technologies and products of its acquisitions, including
ThinkNear; Telenav's ability to estimate and sustain or increase its revenue
and profitability; Telenav's ability to attract and retain qualified
personnel; impact of foreign currency exchange rates; Telenav's ability to
attract, migrate and retain new wireless carriers and auto manufacturers and
automotive OEMs; 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 quarterended December 31, 2012 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.

About Telenav, Inc.

Telenav's mission is to help make people's lives less stressful, more
productive, and more fun when they are on the go. Our personalized navigation
services help people make faster and smarter daily decisions about where to
go, when to leave, how to get there, and what to do when they arrive.

We aim to be everywhere people need us. Our partners are wireless carriers,
automobile manufacturers, app developers, advertisers and advertising
agencies. Our carrier and automotive partners include AT&T, Bell Mobility,
Boost Mobile, Ford, NII Holdings, QNX Software Systems, Rogers, Sony, Sprint
Nextel, Telcel, T-Mobile U.S., U.S. Cellular, and Vivo Brazil. You can also
find us in mobile app stores and on the web at www.telenav.com and
www.scout.me.

Follow Telenav on Twitter at www.twitter.com/telenav or on Facebook at
www.facebook.com/telenav.

The Telenav, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=11384

Copyright 2013 Telenav, Inc. All Rights Reserved.

"Telenav" and "Scout," 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)
                                                             
                                               March 31, 2013 June 30, 2012 *
Assets                                          (unaudited)    
Current assets:                                               
Cash and cash equivalents                       $20,553      $6,920
Short-term investments                          166,969       192,548
Accounts receivable, net of allowances of $408
and $314, at March 31, 2013 and June 30, 2012,  29,412        25,316
respectively
Deferred income taxes                           1,280         1,403
Prepaid expenses and other current assets       12,349        14,319
Total current assets                            230,563       240,506
Property and equipment, net                     12,786        15,442
Deferred income taxes, non-current              2,436         2,872
Goodwill and intangibles                        19,316        923
Other assets                                    5,654         5,036
Total assets                                    $270,755     $264,779
                                                             
Liabilities and stockholders' equity                          
Current liabilities:                                          
Accounts payable                                $2,049       $3,059
Accrued compensation                            7,594         9,116
Accrued royalties                               10,603        4,397
Other accrued expenses                          13,115        8,385
Deferred revenue                                14,306        9,222
Income taxes payable                            532           1,350
Total current liabilities                       48,199        35,529
Deferred rent, non-current                      8,693         8,410
Other long-term liabilities                     5,046         4,322
Commitments and contingencies                                 
Stockholders' equity:                                         
Preferred stock, $0.001 par value: 50,000
shares authorized; no shares issuedor          --            --
outstanding
Common stock, $0.001 par value:600,000 shares
authorized; 45,622 shares issued and 39,665
shares outstanding at March 31, 2013, and       39            42
44,001 shares issued and 41,353 shares
outstanding at June 30, 2012
Additional paid-in capital                      117,150       118,855
Accumulated other comprehensive income          573           370
Retained earnings                               91,055        97,251
Total stockholders' equity                      208,817       216,518
Total liabilities and stockholders' equity      $270,755     $264,779
                                                             
* Derived from audited consolidated financial statements as of and for the
year ended June 30, 2012




Telenav, Inc.
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
                                                                 
                                       Three Months Ended Nine Months Ended
                                        March 31,          March 31,
                                       2013      2012     2013      2012
                                       (unaudited)        (unaudited)
                                                                 
Revenue:                                                          
Product                                 $24,824 $9,758 $48,214 $17,356
Services                                30,163   44,767  96,524   136,725
Total revenue                           54,987   54,525  144,738  154,081
                                                                 
Cost of revenue:                                                  
Product                                 12,882   6,445   26,253   9,954
Services                                8,795    7,651   24,398   22,958
Total cost of revenue                   21,677   14,096  50,651   32,912
                                                                 
Gross profit                            33,310   40,429  94,087   121,170
                                                                 
Operating expenses:                                               
Research and development                16,067   17,251  45,372   49,465
Sales and marketing                     7,941    7,280   22,752   19,726
General and administrative              5,259    5,473   18,635   17,514
Total operating expenses                29,267   30,004  86,759   86,705
                                                                 
Operating income                        4,043    10,425  7,328    34,464
                                                                 
Interest income                         368      403     1,119    1,156
Other income (expense), net             (102)    64      183      311
Income from continuing operations       4,309    10,892  8,629    35,931
before provision for income taxes
Provision for income taxes              488      3,790   2,169    10,349
Income from continuing operations, net  3,821    7,102   6,460    25,582
of tax
Income from discontinued operations,    33       249     999      196
net of tax
Net income                              $3,854  $7,351 $7,459  $25,778
                                                                 
Income from continuing operations, net                            
of tax,per share
Basic                                   $0.10   $0.17  $0.16   $0.62
Diluted                                 $0.09   $0.16  $0.15   $0.58
                                                                 
Income from discontinued operations,                              
net of tax, per share
Basic                                   $0.00   $0.01  $0.02   $0.00
Diluted                                 $0.00   $0.01  $0.02   $0.00
                                                                 
Net income per share                                              
Basic                                   $0.10   $0.18  $0.18   $0.62
Diluted                                 $0.09   $0.17  $0.18   $0.58
                                                                 
Weighted average shares used in                                   
computing net income per share
Basic                                   39,874   41,454  40,672   41,412
Diluted                                 41,628   43,579  42,394   44,208


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

                                                         Nine Months Ended
                                                          March 31,
                                                         2013      2012
                                                         (unaudited)
Operating activities                                               
Net income                                                $7,459  $25,778
Adjustments to reconcile net income to net cash provided           
by operating activities:
Loss on disposal of property, plant & equipment           33       --
Write-off of long-term investments                        85       --
Write-off due to impairment                               340      --
Accretion of premium on short-term investments            3,269    3,416
Depreciation and amortization                             6,427    6,025
Stock-based compensation expense                          6,214    3,798
Excess tax benefit from stock-based compensation          5        (799)
Changes in operating assets and liabilities:                       
Accounts receivable                                       (3,761)  4,185
Deferred income taxes                                     (879)    2,016
Prepaid expenses and other current assets                 1,982    (3,763)
Other assets                                              (924)    (331)
Accounts payable                                          (811)    (27)
Accrued compensation                                      (1,522)  562
Accrued royalties                                         6,206    3,607
Accrued expenses and other liabilities                    5,091    1,843
Income taxes payable                                      (768)    2,780
Deferred rent                                             1,141    8,852
Deferred revenue                                          5,050    (21,899)
Net cash provided by operating activities                 34,637   36,043
                                                                  
Investing activities                                               
Purchases of property and equipment                       (1,887)  (13,058)
Additions to capitalized software                         (793)    (1,649)
Purchases of short-term investments                       (86,569) (112,820)
Purchases of long-term investments                        (950)    (850)
Proceeds from sales and maturities of short-term          109,059  106,462
investments
Acquisitions, net of cash acquired                        (18,254) (1,768)
Net cash provided by (used ) in investing activities      606      (23,683)
                                                                  
Financing activities                                               
Proceeds from exercise of stock options                   2,633    1,843
Tax withholdings related to net share settlements of      (51)     --
restricted stock units
Repurchase of common stock                                (24,209) (11,322)
Excess tax benefit from stock-based compensation          (5)      799
Net cash used in financing activities                     (21,632) (8,680)
                                                                  
Effect of exchange rate changes on cash and cash          22       (98)
equivalents
Net increase in cash and cash equivalents                 13,633   3,582
Cash and cash equivalents, at beginning of period         6,920    24,053
Cash and cash equivalents, at end of period               $20,553 $27,635
                                                                  
Supplemental disclosure of cash flow information                   
Income taxes paid, net                                    $501    $6,870




Telenav, Inc.
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(unaudited)
                                                                   
               Three     Three     Three      Three    Three    Three     Three
               Months    Months    Months     Months   Months   Months    Months
              Ended     Ended     Ended      Ended    Ended    Ended     Ended
               March     December  September, June, 30 March    December  September,
               31,      31,       30                  31,     31,       30
              2013      2012      2012       2012     2012     2011      2011
                                                                   
                                                                   
Revenue:                                                            
Product        $24,824 $14,542 $8,848   $6,830 $9,758 $3,655  $3,943
Services       30,163   32,687   33,674    44,611  44,767  46,277   45,681
Total revenue  54,987   47,229   42,522    51,441  54,525  49,932   49,624
                                                                   
Cost of                                                             
revenue:
Product        12,882   9,103    4,268     3,661   6,445   1,701    1,808
Services       8,795    8,178    7,425     7,875   7,651   7,456    7,851
Total cost of  21,677   17,281   11,693    11,536  14,096  9,157    9,659
revenue
                                                                   
Gross profit   33,310   29,948   30,829    39,905  40,429  40,775   39,965
                                                                   
Operating                                                           
expenses:
Research and   16,067   14,298   15,007    16,299  17,251  16,551   15,663
development
Sales and      7,941    7,577    7,234     5,619   7,280   6,756    5,690
marketing
General and    5,259    7,379    5,997     8,570   5,473   5,791    6,250
administrative
Total
operating      29,267   29,254   28,238    30,488  30,004  29,098   27,603
expenses
                                                                   
Operating      4,043    694      2,591     9,417   10,425  11,677   12,362
income
                                                                   
Interest       368      370      381       417     403     371      382
income
Other income   (102)    244      41        (400)   64      137      110
(expense), net
Income from
continuing
operations     4,309    1,308    3,013     9,434   10,892  12,185   12,854
before
provision for
income taxes
Provision for  488      890      792       3,210   3,790   1,979    4,580
income taxes
Income from
continuing     3,821    418      2,221     6,224   7,102   10,206   8,274
operations,
net of tax
Income from
discontinued   33       486      480       406     249     37       (90)
operations,
net of tax
Net income     $3,854  $904    $2,701   $6,630 $7,351 $10,243 $8,184
                                                                   
Income from
continuing
operations,                                                         
net of
tax,per share
Basic          $0.10   $0.01   $0.05    $0.15  $0.17  $0.25   $0.20
Diluted        $0.09   $0.01   $0.05    $0.14  $0.16  $0.23   $0.18
                                                                   
Income from
discontinued
operations,                                                         
net of tax,
per share
Basic          $0.00   $0.01   $0.01    $0.01  $0.01  $0.00   $(0.00)
Diluted        $0.00   $0.01   $0.01    $0.01  $0.01  $0.00   $(0.00)
                                                                   
Net income per                                                      
share
Basic          $0.10   $0.02   $0.07    $0.16  $0.18  $0.25   $0.20
Diluted        $0.09   $0.02   $0.06    $0.15  $0.17  $0.23   $0.18
                                                                   
Weighted
average shares
used in                                                             
computing net
income per
share
Basic          39,874   40,895   41,312    41,390  41,454  41,232   41,550
Diluted        41,628   42,768   42,975    43,259  43,579  43,921   45,006




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

Reconciliation of GAAP Net Income to Non-GAAP Income from Continuing     
Operations, Net of Tax
                                                       
                                                            Three
                 Three Months Ended   Nine Months Ended     Months
                March 31,            March 31              Ended
                                                            December
                                                            31,
                2013      2012       2013       2012       2012
                                                       
GAAP Net Income  $3,854  $7,351   $7,459   $25,778  $904
Income from
discontinued     33        249        999        196        486
operations, net
of tax
Income from
continuing       3,821     7,102      6,460      25,582     418
operations, net
of tax
                                                       
Adjustments:                                            
Legal settlement --       --        1,300     --        1,300
Capitalized
software and
developed        1,024    509       2,700     1,427     1,091
technology
amortization
expenses
Stock-based                                             
compensation:
Cost of revenue  41       21        117       68        39
Research and     1,017    623       2,545     1,863     889
development
Sales and        684      312       1,676     846       633
marketing
General and      875      351       1,876     1,021     616
administrative
Total
stock-based      2,617    1,307     6,214     3,798     2,177
compensation
                                                       
Tax effect of
adding back      (555)    (188)     (1,601)   (499)     (802)
adjustments
                                                       
Non-GAAP income
from continuing  $6,907  $8,730   $15,073  $30,308  $4,184
operations, net
of tax
                                                       
                                                       
Non-GAAP income
from continuing
operations, net                                         
of tax,per
share
Basic            $0.17   $0.21    $0.37    $0.73    $0.10
Diluted          $0.17   $0.20    $0.36    $0.69    $0.10
                                                       
Weighted average
shares used in
computing                                               
non-GAAP net
income per share
Basic            39,874   41,454    40,672    41,412    40,895
Diluted          41,628   43,579    42,394    44,208    42,768
                                                       
Reconciliation of GAAP Net Income to Adjusted EBITDA from Continuing     
Operations
                                                       
                                                            Three
                 Three Months Ended   Nine Months Ended     Months
                March 31,            March 31,             Ended
                                                            December
                                                            31,
                2013      2012       2013       2012       2012
                                                       
GAAP Net Income  $3,854  $7,351   $7,459   $25,778  $904
Income from
discontinued     33        249        999        196        486
operations, net
of tax
Income from
continuing       3,821     7,102      6,460      25,582     418
operations, net
of tax
                                                       
Adjustments:                                            
Legal settlement --       --        1,300     --        1,300
Stock-based      2,617    1,307     6,214     3,798     2,177
compensation
Depreciation and 2,172    2,098     6,427     6,025     2,363
amortization
Interest income  (368)    (403)     (1,119)   (1,156)   (370)
Other income     102      (64)      (183)     (311)     (244)
(expense), net
Provision for    488      3,790     2,169     10,349    890
income taxes
                                                       
Adjusted EBITDA
from continuing  $8,832  $13,830  $21,268  $44,287  $6,534
operations

CONTACT: Media Contact:
         Mark Burfeind
         Telenav, Inc.
         206.240.3970
         markb@telenav.com
        
         Investor Relations:
         Cynthia Hiponia and Alice Kousoum
         The Blueshirt Group for Telenav, Inc.
         408.990.1265
         IR@telenav.com

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