telenav inc (TNAV) Snapshot

Telenav, Inc. announced unaudited consolidated earnings results for the third quarter and nine months ended March 31, 2013. For the quarter, the company reported total revenues of $54,987,000 compared with $54,525,000 for the same period a year ago. Operating income was $4,043,000 compared with $10,425,000 for the same period a year ago. Income from continuing operations before provision for income taxes was $4,309,000 compared with $10,892,000 for the same period a year ago. Income from continuing operations was $3,821,000 or $0.09 per diluted share compared with $7,102,000 or $0.16 per diluted share for the same period a year ago. Net income was $3,854,000 or $0.00 per diluted share compared with $7,351,000 or $0.01 per diluted share for the same period a year ago. Non-GAAP income from continuing operations, net of tax was $6,907,000 or $0.17 per diluted share compared with $8,730,000 or $0.20 per diluted share for the same period a year ago. Adjusted EBITDA from continuing operations was $8,832,000 compared with $13,830,000 for the same period a year ago. Increase in revenue was primarily driven by a $7.7 million in revenue related to customized engineering services provided to the company’s automotive customers. In addition to this growth, the company saw a positive impact to revenue from the recognition of $4 million for map content upgrades with Ford. The year-over-year decrease in net income from continuing operations was primarily a result of lower gross margin. For the nine months, the company reported total revenues of $144,738,000 compared with $154,081,000 for the same period a year ago. Operating income was $7,328,000 compared with $34,464,000 for the same period a year ago. Income from continuing operations before provision for income taxes was $8,629,000 compared with $35,931,000 for the same period a year ago. Income from continuing operations was $6,460,000 or $0.15 per diluted share compared with $25,582,000 or $0.58 per diluted share for the same period a year ago. Net income was $7,459,000 or $0.02 per diluted share compared with $25,778,000 or $0.00 per diluted share for the same period a year ago. Net cash provided by operating activities was $34,637,000 compared with $36,043,000 for the same period a year ago. Purchases of property and equipment were $1,887,000 compared with $13,058,000 for the same period a year ago. Additions to capitalized software were $793,000 compared with $1,649,000 for the same period a year ago. Non-GAAP income from continuing operations, net of tax was $15,073,000 or $0.36 per diluted share compared with $30,308,000 or $0.69 per diluted share for the same period a year ago. Adjusted EBITDA from continuing operations was $21,268,000 compared with $44,287,000 for the same period a year ago. The company provided earnings guidance for the fourth quarter and full year ending June 30, 2013 and full year ending June 30, 2014. For the quarter, 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% of total revenue; GAAP gross margin from continuing operations is expected to be 63% to 64%; Non-GAAP gross margin from continuing operations is expected to be 65% to 66%, and excludes adjustments such as the amortization of capitalized software and developed technology of approximately $1 million; GAAP net loss from continuing operations is expected to be $1 million to $2 million 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 income from continuing operations is expected to be $2 million to $3 million; Non-GAAP diluted net income per share from continuing operations is expected to be $0.05 to $0.07; Adjusted EBITDA, earnings before interest, taxes, depreciation, amortization, stock-based compensation expense and income from discontinued operations, is expected to be $1.5 million 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 $9.5 million of income from discontinued operations. For the fiscal year ending June 30, 2013, total revenue from continuing operations is expected to be $186 million 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; GAAP gross margin from continuing operations is expected to be approximately 65%; 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 operations is expected to be $17 million to $18 million; Non-GAAP diluted net income from continuing operations per share is expected to be $0.42 to $0.44; Adjusted EBITDA, earnings before interest, taxes, depreciation, amortization, stock-based compensation expense, legal settlements and gain in income from discontinued operations, is expected to be $23 million to $24 million, and excludes the impact of approximately $9.5 million in stock-based compensation expenses, approximately $9 million of depreciation and amortization expenses and approximately $11 million of income from discontinued operations. The company does not anticipate operating cost reductions in fiscal 2014 and therefore expects to incur losses in fiscal 2014.

Telenav, Inc. announced the availability of a new embedded product in its Scout for Cars line up, integrating in-dash navigation with mobile and cloud services for real-time, personalized information. With Scout for Cars: Built In, automakers now can offer in-car navigation with always up-to-date content and services while reducing mapping costs -- under their own brand or Scout. For drivers, they can connect their familiar Scout for Phones service in their car and know it will always have the latest information. Most in-vehicle navigation systems are only able to receive broadcasted information over the radio or satellite, but 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 their phone or in their car. Using Bluetooth, the in-dash system connects with a fully functional, standalone smartphone application to give drivers the ability to search, discover, and drive to places using one product and at a lower cost than most comparable in-car navigation systems. Search results are easy to access across Scout.me, Scout for Phones, and Scout for Cars -- so that drivers can use their favorite discovery and personalized navigation service no matter where they are. The new Scout for Cars: Built In product will also sync information from Scout for Phones into the car, allowing drivers access to the app's features and services through the in-dash LCD touchscreen. In addition, Telenav is the only company to offer an embedded product that transfers a route automatically from the car's head unit to the phone for "last mile navigation," providing walking directions as needed to the user's final destination. The new Scout for Cars: Built In product can work with or without connectivity and brings the most frequently used features to the in-dash home screen -- including commute times, local search, personal favorites, and recent trips. In addition, it addresses drivers' top in-car navigation demands by making it easier to access addresses and points of interest (POIs) through voice commands and one-box search, a feature that allows users to enter the entire address or business in one step.

Telenav, Inc., Q3 2013 Earnings Call, Apr 25, 2013