TeleNav 2010 Annual Report Download - page 31

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• difficulties in managing the staffing of remote operations;
• potentially adverse tax consequences, including the complexities of foreign value added tax systems,
restrictions on the repatriation of earnings and changes in tax rates;
• dependence on foreign wireless carriers with different pricing models;
• availability of reliable 2G, 3G and 4G mobile networks in those countries;
• requirements that we comply with local telecommunication regulations in those countries;
• the burdens of complying with a wide variety of foreign laws and different legal standards;
• increased financial accounting and reporting burdens and complexities;
• political, social and economic instability in some jurisdictions;
• terrorist attacks and security concerns in general; and
• reduced or varied protection for intellectual property rights in some countries.
The occurrence of any one of these risks could negatively affect our international business and,
consequently, our operating results. Additionally, operating in international markets requires significant
management attention and financial resources. We cannot be certain that the investment and additional resources
required to establish, acquire or integrate operations in other countries will produce desired levels of revenue or
profitability.
We rely on our management team and need additional personnel to grow our business, and the loss of one or
more key employees or our inability to attract and retain qualified personnel could harm our business.
Our success and future growth depend on the skills, working relationships and continued services of our
management team and in particular, our founders, Y.C. Chao, H.P. Jin and Robert Rennard. Our future
performance will depend on our ability to continue to retain our senior management. Our future success also will
depend on our ability to attract, retain and motivate highly skilled personnel in the United States and
internationally. All of our employees work for us on an at will basis. Competition for personnel is intense,
particularly in the software industry and for persons with experience with GPS and LBS. As a result, we may be
unable to attract or retain qualified personnel. Our inability to attract and retain the necessary personnel could
adversely affect our business. We do not maintain key person insurance for any of our personnel.
If we are unable to integrate future acquisitions successfully, our operating results and prospects could be
harmed.
We have not made any acquisitions to date and we do not have any current plans, proposals or
understandings relating to any material acquisitions or licenses. In the future, we may make acquisitions to
improve our LBS offerings or expand to new markets. Our future acquisition strategy will depend on our ability
to identify, negotiate, complete and integrate acquisitions and, if necessary, to obtain satisfactory debt or equity
financing to fund those acquisitions. Mergers and acquisitions are inherently risky, and any mergers and
acquisitions we complete may not be successful. Any mergers and acquisitions we may pursue would involve
numerous risks, including the following:
• difficulties in integrating and managing the operations, technologies and products of the companies we
acquire;
• diversion of our management’s attention from normal daily operation of our business;
• our inability to maintain the key business relationships and the reputations of the businesses we
acquire;
• our inability to retain key personnel of the acquired company;
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