TeleNav 2015 Annual Report Download - page 66

Table of Contents
At June 30, 2015 , we had cash and cash equivalents and short-term investments of $119.9 million , which primarily consisted of money
market mutual funds, asset-backed securities, municipal securities and corporate bonds held by well-capitalized financial institutions.
Our accounts receivable are heavily concentrated in a small number of customers. As of June 30, 2015 , our accounts receivable balance
was $36.5 million , of which Ford and AT&T represented 58% and 14% , respectively.
Our future capital requirements will depend on many factors, including our ability to stabilize our revenue and control expenses in fiscal
2016 and beyond, whether we return to profitability, the timing and extent of expenditures to support development efforts, the expansion of
research and development and sales and marketing activities and headcount, the introduction of our new and enhanced service and product
offerings and the growth in our end user base. We believe our cash, cash equivalents and short-term investments will be sufficient to satisfy our
financial obligations through at least the next 12 months. However, we expect to continue to use cash in operating activities in fiscal 2016 and
we may experience greater than expected cash usage in operating activities if revenue is lower than we anticipate or we incur greater than
expected cost of revenue or operating expenses. Our revenue and operating results could be lower than we anticipate if, among other reasons, our
customers, two of which we are substantially dependent upon for a large portion of our revenue, were to limit or terminate our relationships with
them; we were to fail to successfully compete in our highly competitive market, including against competitors who offer their services for free;
our revenue did not grow as expected or we were unable to reduce our costs by using OSM. In the future, we may acquire businesses or
technologies or license technologies from third parties, and we may decide to raise additional capital through debt or equity financing to the
extent we believe this is necessary to successfully complete these acquisitions or license these technologies. However, additional financing may
not be available to us on favorable terms, if at all, at the time we make such determinations, which could have a material adverse effect on our
business, operating results, financial condition and liquidity and cash position.
Net cash provided by (used in) operating activities . Net cash provided by (used in) operating activities was $(7.7) million
, $(22.6) million
and $42.9 million in fiscal 2015 , 2014 and 2013 , respectively. Cash provided by (used in) operating activities has historically been affected by
growth in our end user base and increases in our operating costs. In fiscal 2015 , cash used in operating activities was driven principally by a net
loss of $23.1 million and a $3.2 million change in our operating assets and liabilities, partially offset by non-cash charges for depreciation and
amortization of $5.2 million , stock-based compensation of $11.4 million , and write-off of long-term investments of $1.3 million . In fiscal
2014, cash used in operating activities was driven principally by a net loss of $29.5 million and a $23.0 million change in our operating assets
and liabilities, partially offset by non-cash charges for depreciation and amortization of $6.8 million, stock-
based compensation of $11.5 million,
and valuation allowance on deferred tax assets of $7.4 million. In fiscal 2013, cash provided by operating activities was provided principally by
net income of $13.1 million, non-cash charges for depreciation and amortization of $8.4 million, stock-
based compensation of $8.6 million and a
$7.1 million change in our operating assets and liabilities.
Net cash provided by (used in) investing activities . Net cash provided by (used in) investing activities was $16.1 million , $20.1 million
and $(0.2) million during fiscal 2015 , 2014 and 2013 , respectively. In fiscal 2015 , cash was provided primarily by proceeds from sales and
maturities of short-term investments, net of purchases, of $19.4 million , partially offset by purchases of property and equipment of $1.2 million
and purchases of long-term investments of $2.5 million . In fiscal 2014, cash was provided primarily by proceeds from sales and maturities of
short-term investments, net of purchases, of $40.2 million, partially offset by our acquisition of skobbler for $19.2 million and purchases of
property and equipment of $1.1 million. In fiscal 2013, we used cash primarily for our acquisition of Thinknear of $18.3 million and purchases
of property and equipment of $2.2 million, which were offset by proceeds from sales and maturities of short-term investments, net of purchases,
of $22.2 million. We expect our capital expenditures in future periods to remain in line with fiscal 2015 as we continue to invest in the
infrastructure needed for our strategic growth areas of automotive and advertising, while also leveraging the benefits of hosted environments for
which we no longer have to make large upfront capital expenditure investments.
Net cash used in financing activities . During fiscal 2015 , 2014 and 2013 , we used cash in our financing activities of $2.5 million , $8.9
million and $23.9 million, respectively. In fiscal 2015 , 2014 and 2013 , these activities reflect the repurchases of our outstanding stock under
our stock repurchase programs and tax withholdings paid related to net share settlements of restricted stock units upon vesting, and were
partially offset by proceeds from the exercise of options for our common stock.
Contractual obligations, commitments and contingencies
We generally do not enter into long term minimum purchase commitments. However, we have agreed to pay minimum annual license fees
to certain of our third party content providers. Our principal commitments, in addition to those related to our third party content providers,
consist of obligations under facility leases for office space in Sunnyvale and Culver City, California; Northlake, Washington; Reston, Virginia;
Southfield, Michigan; Boston, Massachusetts; Chicago, Illinois; New
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