TeleNav 2013 Annual Report Download - page 24

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Table of Contents
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:
Fluctuations in our quarterly operating results might lead analysts to change their models for valuing our common stock. As a result, our stock
price could decline rapidly and we could face costly securities class action lawsuits or other unanticipated issues.
We operate in a highly competitive market, including competitors that offer their services for free, which could make it difficult for us to acquire
and retain wireless carrier customers and end users.
The market for development, distribution and sale of location services is highly competitive. Many of our competitors have greater name
recognition, larger customer bases and significantly greater financial, technical, marketing, public relations, sales, distribution and other resources
than we do. Competitors may offer mobile location services that have at least equivalent functionality to ours for free. For example, Google offers
free voice-
guided turn by turn navigation as part of its Google Maps product for mobile devices based on the Android operating system platform, and
recently introduced a similar new product for the iOS platform. Apple offers proprietary maps and voice-guided turn by turn directions as part of its
iOS 6 operating system release and Nokia, provides a download for its latest version of Nokia Maps on its smartphones which also provides voice-
guided turn by turn navigation functions. Microsoft also provides a free voice-guided turn by turn navigation solution on its Windows Mobile and
Windows Phone operating systems. Competition from these free offerings may reduce our revenue, result in our incurring additional costs to compete
and harm our business. If our wireless carrier customers can offer these
19
•
the transition away from paid carrier navigation to freemium offerings for mobile phone based navigation services;
•
impact of results of the offering of a premium upgrade on a basic version of our service that is offered for free;
•
the ability of our automobile manufacturer customers to sell automobiles equipped with our products;
•
the seasonality of new vehicle model introductions and consumer buying patterns, as well as the effects of financial market turmoil and
economic uncertainty on vehicle purchases
,
particularly outside of the U.S.;
•
the effectiveness of our entry into new business areas, such as advertising;
•
changes made to existing contractual obligations with a customer that may affect the nature and timing of revenue recognition;
• poor reviews of automotive service offerings into which our navigation solutions are integrated resulting in limited uptake of navigation
options by car buyers;
•
loss of subscribers by our wireless carrier customers or a reduction in the number of subscribers to plans that include our services;
•
the timing and quality of information we receive from our customers;
•
our inability to attract new end users;
•
the timing and success of new service introductions by us or our competitors;
•
the loss of our relationship or a change in our revenue model with any particular wireless carrier customer;
•
the timing and success of marketing expenditures for our products;
•
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 new vehicles, smartphones and mobile location services in
the United States and other countries where we sell our services and products;
•
changes in interest rates and our mix of investments, which would impact our return on our investments in cash and marketable securities;
•
changes in our effective tax rates; and
•
the impact of new accounting pronouncements.