TeleNav 2012 Annual Report Download - page 32

Table of Contents
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 and we may incur losses as a result.
We rely on our management team and need specialized 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. 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 highly skilled personnel is intense, particularly in the software
industry and for persons with experience with GPS and location services. The high degree of competition for personnel we experience has resulted in
and may also continue to result in the incurrence of significantly higher compensation costs to attract, hire and retain employees. We have from time
to time experienced, and we expect to continue to experience, difficulty in attracting, hiring and retaining highly skilled employees with appropriate
qualifications. In addition, existing employees often consider the value of the stock awards they receive in connection with their employment. If our
stock price performs poorly, it may adversely affect our ability to retain highly skilled employees. Our inability to attract and retain the necessary
personnel could adversely affect our business and future growth prospects.
We may be required to incur unanticipated capital expenditures.
Circumstances may arise that require us to make unanticipated capital expenditures, including:
We rely on network infrastructures provided by our wireless carrier customers and mobile phones for the delivery of our mobile navigation
services to end users.
We generally provide our navigation services from our own servers, which require close integration with the wireless carriers’ networks. We
may be unable to provide high quality services if the wireless carriers’ networks perform poorly or experience delayed response times. Our future
success will depend on the availability and quality of our wireless carrier customers’ networks in the United States and abroad to run our mobile
navigation services. This includes deployment and maintenance of reliable 2G, 3G and 4G networks with the speed, data capacity and security
necessary to provide reliable wireless communications services. We do not establish or maintain these wireless networks and have no control over
interruptions or failures in the deployment and maintenance by wireless carrier customers of their network infrastructure. In addition, these wireless
network infrastructures may be unable to support the demands placed on them if the number of subscribers increases, or if existing or future
subscribers increase their use of limited bandwidth. Market acceptance of our mobile navigation services will depend in part on the quality of these
wireless networks and the ability of our wireless carrier customers to effectively manage their subscribers’ expectations.
Wireless communications have experienced a variety of outages and other delays as a result of infrastructure and equipment failures and could
face outages and delays in the future. These outages and delays could affect our ability to provide our navigation services successfully. In addition,
changes by a wireless carrier to its network infrastructure may interfere with the integration of our servers with their network and delivery of our
navigation services and may cause end users to lose
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roaming charges to end users;
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availability of reliable 2G, 3G and 4G mobile networks in those countries;
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requirements that we comply with local telecommunication regulations and automobile hands free laws in those countries;
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the burdens of complying with a wide variety of foreign laws and different legal standards;
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increased financial accounting and reporting burdens and complexities;
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political, social and economic instability in some jurisdictions;
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terrorist attacks and security concerns in general; and
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reduced or varied protection for intellectual property rights in some countries.
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the implementation of our equipment at new data centers and expansion of our operations at data centers;
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the replacement of outdated or failing equipment; and
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the acquisition of key technologies to support or expand our navigation services.