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Telenav Reports Second Quarter Fiscal 2013 Financial Results

- Strategic growth and international revenue more than doubled year over year and achieved over 50 percent of total revenue -Automotive revenue was 30 percent of total revenue

SUNNYVALE, Calif. , Jan. 31, 2013 (GLOBE NEWSWIRE) --

Telenav®, Inc. (Nasdaq:TNAV), the leader in personalized navigation, today announced its financial results for the second quarter of fiscal 2013 ended December 31, 2012.

"In the second quarter, we delivered solid results in our strategic growth areas," said HP Jin, chairman, president and CEO of Telenav. "Revenue from our automotive business grew and accounted for 30 percent of total revenue in the quarter and we continue to expand our presence in automotive navigation. We drove healthy progress in our mobile advertising business and national and local advertisers continue to show growing interest in our Scout Advertising platform."

Financial Highlights

  • Revenue for the second quarter of fiscal 2013 was $50.6 million, which compares with $46.0 million in the prior sequential quarter and $53.2 million in the second quarter of fiscal 2012. As previously announced in July of 2012, Telenav amended its contract with Sprint and, as a result, the quarterly revenue under the Sprint bundle declined relative to the second quarter of fiscal 2012. Quarter over quarter growth resulted from increased revenue in strategic growth areas and international.
  • Revenue from strategic growth areas - which include automotive, enterprise location-based services (LBS), mobile advertising and premium LBS, combined with international revenue was $25.3 million, which compared with $18.4 million in the prior sequential quarter and $11.5 million in the same quarter one year ago. Strategic growth and international revenue represented 50 percent of total revenue for the second quarter of fiscal 2013, up from 40 percent for the first quarter of fiscal 2013. Included in revenue from strategic growth, automotive revenue was $15.1 million or 30 percent of total revenue, for the second quarter of fiscal 2013.
  • Net income for the second quarter of fiscal 2013 was $0.9 million, or $0.02 per diluted share, which compared with net income of $2.7 million, or $0.06 per diluted share, in the first quarter of fiscal 2013 and net income of $10.2 million, or $0.23 per diluted share, for the second quarter of fiscal 2012.
  • Non-GAAP net income for the second quarter of fiscal 2013 was $4.7 million, or $0.11 per diluted share, which compared with $4.5 million, or $0.10 per diluted share, in the first quarter of fiscal 2013 and $11.7 million, or $0.27 per diluted share in the second quarter of fiscal 2012. Non-GAAP net income and non-GAAP net income per diluted share excludes stock-based compensation expense, legal settlement costs and amortization expense of capitalized software and developed technology, net of tax.
  • Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, legal settlement cost and stock-based compensation expense) for the second quarter of fiscal 2013 was $7.3 million, which compared with $6.7 million in the prior sequential quarter and $14.8 million in the same quarter a year ago.
  • Ending cash, cash equivalents and short-term investments were $207.8 million and the company had no debt as of December 31, 2012. This represented $5.06 per share of outstanding common stock as of December, 2012.

Recent Business Highlights

  • In March 2013, Telenav's agreement with AT&T will be automatically renewed with the existing terms through March 2014.
  • In the December 2012 quarter, a large international auto manufacturer based in the United States debuted Delphi's connected infotainment system equipped with Telenav's embedded navigation platform. Telenav now provides the navigation and local search technology in three models of this international auto manufacturer's cars sold in North America.
  • In January 2013, Telenav appointed Eli Portnoy to the newly created position of general manager of Scout Advertising. Mr. Portnoy will oversee all development, sales and marketing for Telenav's combined mobile local advertising business. Mr. Portnoy joined Telenav in October of this year when Telenav acquired ThinkNear, a hyper-local mobile advertising company that Mr. Portnoy had co-founded and where he had served as CEO until the acquisition.
  • In October 2012, an independent panel of judges selected Scout for Cars as a finalist for the 2013 Automotive News Premier Automotive Suppliers' Contribution to Excellence (PACE) TM Award in the Information Technology category. The PACE Awards program honors automotive suppliers who 'embraced innovation or adapted and reinvented themselves to keep abreast of the constantly rising performance bar of the OEM/customer and the rising expectations of consumers.' Final winners will be announced in April.
  • Telenav has recently added a few significant updates to Scout for iPhone, notably adding voice-guided navigation as a feature in the free version of the application in October as well as adding a "Things to Do" local events category in January. Under the Things to Do category, customers can now search for and discover events happening around them including live music, kids' activities and theater showings.

Business Outlook

For the third fiscal quarter ending March 31, 2013, Telenav offers the following guidance, which is predicated on management's judgments:

  • Total revenue is expected to be $52 to $54 million, which will include approximately $9 million of revenue related to non-recurring engineering fees earned in our automotive business;
  • Revenue from strategic growth areas and international is expected to be 55 percent to 60 percent of total revenue;
  • GAAP gross margin is expected to be 64 percent to 65 percent;
  • Non-GAAP gross margin is expected to be 66 percent to 67 percent, and excludes adjustments which include the amortization of capitalized software and developed technology of approximately $1 million;
  • GAAP operating expenses are expected to be $32 to $33 million;
  • Non-GAAP operating expenses are expected to be $29.5 to $30.5 million, and exclude approximately $2.5 million in stock-based compensation expense;
  • GAAP net income is expected to be break even to $1 million;
  • GAAP diluted net income per share is expected to be $0.00 to $0.02;
  • Non-GAAP net income is expected to be $3 to $4 million, and excludes the impact of approximately $2.5 million of stock-based compensation expense and approximately $1 million of capitalized software and developed technology amortization expenses;
  • Non-GAAP diluted net income per share is expected to be $0.07 to $0.09;
  • Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, and stock-based compensation expense) is expected to be $6 to $7 million, and excludes the impact of approximately $2.5 million in stock-based compensation expenses and approximately $2.5 million of depreciation and amortization expenses;
  • Weighted average diluted shares outstanding are expected to be approximately 42.5 million.

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

  • Total revenue is expected to be $193 to $197 million;
  • Revenue from strategic growth areas and international is expected to be approximately 50 percent of total revenue for the fiscal year;
  • GAAP gross margin is expected to be 65 percent to 66 percent;
  • Non-GAAP gross margin is expected to be 67 percent to 68 percent , and excludes adjustments which include the amortization of capitalized software and developed technology of approximately $4 million;
  • GAAP net income is expected to be breakeven to $1 million;
  • GAAP diluted net income per share is expected to be $0.00 to $0.02;
  • Non-GAAP net income is expected to be $11 million to $14 million, or $0.26 to $0.33 per diluted share, and excludes the impact of $9 to $10 million of stock-based compensation expense, net of taxes, and approximately $4 million of capitalized software and developed technology amortization expenses;
  • Adjusted EBITDA (earnings before interest, taxes, depreciation, amortization, and stock-based compensation expense) is expected to be $18 to $21 million, and excludes the impact of $9 to $10 million in stock-based compensation expenses and $9 to $10 million of depreciation and amortization expenses;
  • Weighted average diluted shares outstanding are expected to be 42 million to 43 million.

The above information concerning guidance for the third fiscal quarter and fiscal 2013 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.

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