TeleNav 2010 Annual Report Download - page 99

TELENAV, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
12. Quarterly financial data (unaudited)
Summarized quarterly financial information for fiscal 2010 and 2009 is as follows (in thousands):
Three months ended
Consolidated statements of
income data (in thousands)
Sept. 30,
2008
Dec. 31,
2008
Mar. 31,
2009
June 30,
2009
Sept. 30,
2009
Dec. 31,
2009
Mar. 31,
2010
June 30,
2010
(unaudited)
Revenue ................ $21,523 $25,257 $29,846 $34,254 $36,048 $40,503 $45,101 $49,510
Gross profit ............. 17,500 20,803 24,550 27,777 28,981 33,613 37,928 41,159
Net income ............. 4,975 6,862 7,448 10,333 8,121 10,136 12,541 10,612
Net income per share
applicable to common
stockholders:
Basic .............. $ 0.23 $ 0.32 $ 0.35 $ 0.49 $ 0.38 $ 0.47 $ 0.58 $ 0.32
Diluted ............. $ 0.09 $ 0.13 $ 0.14 $ 0.20 $ 0.15 $ 0.19 $ 0.23 $ 0.24
13. Subsequent Events
On August 18, 2010, with respect to the lawsuit brought by Emsat, as previously disclosed, a third-party
requestor filed an ex parte request for reexamination of U.S. Patent No. 6,324,404. That request is pending before
the U.S. Patent and Trademark Office. In the Sprint and Alltel cases, the court has not yet lifted the stay and
denied the plaintiff’s motion to vacate the stay on August 20, 2010. The court issued its claim construction ruling
on August 23, 2010. On August 23, 2010, the court denied the partial summary judgment motion filed by
T-Mobile and AT&T.
On August 30, 2010, with respect to the lawsuit brought by Alfred P. Levine, as previously disclosed, the
court set a claim construction hearing date of December 21, 2011 and a trial date of May 7, 2012.
On September 2, 2010, a purported stockholder class action was filed by David Smith in the United States
District Court for the Northern District of California (Case No. 3:10-CV-03942-SC) against us, certain of our
officers and directors, and certain of our underwriters for our May 13, 2010 initial public offering, or IPO. The
complaint purports to be brought on behalf of all persons who acquired shares of our common stock pursuant to
our May 13, 2010 IPO, traceable to our Form S-1/A Registration Statement and Prospectus filed with the
Securities and Exchange Commission on May 13, 2010. The complaint alleges that we, certain of our officers
and directors, and certain of our underwriters for the IPO violated the Securities Act of 1933, as amended, or the
Securities Act, by issuing the Registration Statement and Prospectus, which the plaintiff alleges contained
material misstatements and omissions in violation of Sections 11 and 15 of the Securities Act. Specifically, the
complaint alleges that we failed to disclose in our May 13, 2010 Registration Statement and Prospectus that we
would soon be renegotiating our current contract with Sprint, our largest customer, which would result in our
revenue being reduced. The complaint seeks class certification, compensatory damages, attorneys’ fees and costs,
rescission or a rescissory measure of damages, equitable and/or injunctive relief, and such other relief as the
court may deem proper. We expect that other purported plaintiffs will file claims in this case. We deny these
allegations and believe that our defenses to this action have merit. We intend to vigorously defend against this
action and file a motion to dismiss the complaint. Due to the preliminary status of the lawsuit and uncertainties
related to litigation, we are unable to evaluate the likelihood of either a favorable or unfavorable outcome. We
cannot currently estimate a range of any possible losses we may experience in connection with this case.
Accordingly, we are unable at this time to estimate the effects of this complaint on our financial condition, results
of operations or cash flows.
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