TeleNav 2014 Annual Report Download - page 58

Table of Contents
the current and any future tax audits could significantly impact the amounts provided for income taxes in our consolidated financial statements.
Our assumptions, judgments and estimates relative to the value of a deferred tax asset take into account predictions of the amount and
category of future taxable income, such as income from operations or capital gains income and predictions of the amount and category of future
taxable loss that may be carried back for a tax refund. In assessing the realizability of deferred tax assets, we consider whether it is more likely
than not that some portion or all of the deferred tax assets, on a jurisdiction by jurisdiction basis, will be realized. Actual operating results and
the underlying amount and category of income in future years as well as expectations regarding the generation of operating losses could render
our current assumptions, judgments and estimates of recoverable net deferred taxes inaccurate. Any of the assumptions, judgments and estimates
mentioned above could cause our actual income tax obligations or refunds to differ from our estimates, thus materially impacting our financial
position and results of operations.
Results of operations
The following tables set forth our results of operations for fiscal 2014 , 2013 and 2012 , as well as a percentage that each line item
represents of our revenue for those periods. The period to period comparison of financial results is not necessarily indicative of financial results
to be achieved in future periods.
The results of operations of our enterprise business, including the related gain on sale, have been classified as discontinued operations in
our statement of operations for periods presented through fiscal 2013. The following discussion focuses solely on results of continuing
operations.
48
Fiscal Year Ended June 30,
Consolidated Statements of Operations Data 2014 2013 2012
Revenue: (in thousands)
Product
$
72,747
$
69,162
$
24,186
Services
77,566
122,638
181,336
Total revenue
150,313
191,800
205,522
Cost of revenue:
Product
36,775
38,164
13,615
Services
24,066
30,949
30,833
Total cost of revenue
60,841
69,113
44,448
Gross profit
89,472
122,687
161,074
Operating expenses:
Research and development
60,573
60,349
65,764
Sales and marketing
33,138
30,435
25,345
General and administrative
26,176
24,765
26,084
Restructuring costs
4,412
1,671
—
Total operating expenses
124,299
117,220
117,193
Operating income (loss)
(34,827
)
5,467
43,881
Other income, net
1,288
1,207
1,484
Income (loss) before provision for income taxes
(33,539
)
6,674
45,365
Provision (benefit) for income taxes
(4,015
)
1,093
13,559
Income (loss) from continuing operations, net of tax
(29,524
)
5,581
31,806
Income from discontinued operations, net of tax
—
7,486
602
Net income (loss)
$
(29,524
)
$
13,067
$
32,408