TeleNav 2010 Annual Report Download - page 28

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If we are unable to meet these requirements, our wireless carrier partners could terminate our agreements or we
may be required to refund a portion of monthly subscriptions fees they have paid us.
In addition, if our end user base continues to grow, additional strain will be placed on our technology
systems and networks, which may increase the risk of a network disruption. Any outage in a network or system,
or other unanticipated problem that leads to an interruption or disruption of our LBS, could have a material
adverse effect on our operating results and financial condition.
If our LBS platform does not scale as anticipated, or we are unable to grow data center capacity as needed,
our business will be harmed.
Despite frequent testing of the scalability of our LBS platform in a test environment, the ability of our LBS
platform to scale to support a substantial increase in the use of our services or number of users in an actual
commercial environment is unproven. If our LBS platform does not efficiently and effectively scale to support
and manage a substantial increase in the use of our services or number of users while maintaining a high level of
performance, our business will be seriously harmed.
Our quarterly revenue and operating results have fluctuated in the past and may fluctuate in the future due to
a number of factors. As a result, we may fail to meet or exceed the expectations of securities analysts or
investors, which could cause our stock price to decline.
Our quarterly revenue and operating results may vary significantly in the future. Therefore, you should not
rely on the results achieved in any one quarter as an indication of future performance. Period to period
comparisons of our revenue and operating results may not be meaningful. Our quarterly results of operations may
fluctuate as a result of a variety of factors, including, but not limited to, those listed below, many of which are
outside of our control:
• changes in the pricing of our services or products or those of our competitors and changes in the
pricing and content of bundled LBS offerings of our wireless carrier partners, such as the revenue
model changes resulting from our recent contract amendment with Sprint;
• loss of subscribers by our wireless carrier partners or a reduction in the number of subscribers to plans
that include our services;
• the timing and quality of information we receive from our wireless carrier partners;
• our inability to attract new end users;
• the timing and success of new service introductions by us or our competitors;
• the timing and success of new mobile phone introductions by our wireless carrier partners;
• the loss of our relationship with any particular wireless carrier partner;
• the timing and success of wireless carrier partners’ marketing expenditures;
• the extent of any interruption in our services;
• the amount and timing of operating costs and capital expenditures related to the expansion of our
operations and infrastructure;
• the timing of expenses related to the development or acquisition of technologies, products or
businesses;
• potential foreign currency exchange gains and losses associated with expenses and sales denominated
in currencies other than the U.S. dollar;
• general economic, industry and market conditions that impact expenditures for smartphones and LBS
in the United States and other countries where we sell our services and products;
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