TeleNav 2014 Annual Report Download - page 64

Table of Contents
Liquidity and capital resources
The following table sets forth the major sources and uses of cash and cash equivalents for each of the periods set forth below:
At June 30, 2014 , we had cash and cash equivalents and short-term investments of $136.8 million , which primarily consisted of money
market mutual funds, municipal securities, corporate bonds and commercial paper held by well-capitalized financial institutions.
Our accounts receivable are heavily concentrated in a small number of customers. As of June 30, 2014 , our accounts receivable balance
was $25.8 million , of which Ford and AT&T represented 47% and 19% , respectively.
Our future capital requirements will depend on many factors, including our ability to stabilize our revenue and control expenses in fiscal
2015 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 use cash in operating activities in fiscal 2015 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 $(22.6) million , $42.9 million
and $29.3 million in fiscal 2014 , 2013 and 2012 , 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 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. In
fiscal 2012, cash provided by operating activities was generated principally by net income of $32.4 million, non-cash charges for depreciation
and amortization of $8.2 million and stock-based compensation of $5.1 million, partially offset by a $20.4 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 $20.1 million , $(0.2) million
and $(36.7) million during fiscal 2014 , 2013 and 2012 , respectively. 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. In fiscal 2012, cash was used primarily for purchases of property and equipment of $13.5 million ($7.3 million of
which was related to tenant improvements in our new headquarters building), internal software development costs of $2.4 million and net
purchases of $18.0 million of short-term investments. We expect our capital expenditures in future periods to remain in line with fiscal 2014
54
Fiscal Year Ended June 30,
2014 2013 2012
(in thousands)
Net cash provided by (used in) operating activities
$
(22,553
)
$
42,913
$
29,307
Net cash provided by (used in) investing activities
20,132
(185
)
(36,713
)
Net cash used in financing activities
(8,883
)
(23,874
)
(9,640
)
Effect of exchange rate changes on cash and cash equivalents
51
13
(87
)
Net increase (decrease) in cash and cash equivalents
(11,253
)
$
18,867
$
(17,133
)