TeleNav 2011 Annual Report Download - page 33

Table of Contents
may not be successful in particular countries or regions outside the United States for reasons that we currently do not anticipate. In addition,
conducting international operations subjects us to risks that we have not generally faced in the United States. These include:
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, HP 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 highly skilled personnel is intense, particularly in the
software industry and for persons with experience with GPS and LBS. 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.
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. 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,
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fluctuations in currency exchange rates;
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unexpected changes in foreign regulatory requirements
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difficulties in managing the staffing of remote operations;
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potentially adverse tax consequences, including the complexities of foreign value added tax systems, restrictions on the repatriation
of earnings and changes in tax rates;
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dependence on foreign wireless carriers with different pricing models;
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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 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.