TeleNav 2015 Annual Report Download - page 32

Table of Contents
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 and we may incur larger losses as a result.
We rely on our management team and need specialized 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. Our future
performance will depend on our ability to continue to retain our senior management, particularly in the growth areas of our business, such as
automotive and advertising.
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 U.S. 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 location services. 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.
We may be required to incur unanticipated capital expenditures.
Circumstances may arise that require us to make unanticipated capital expenditures, including:
We rely on network infrastructures provided by our wireless carrier customers, mobile phones and in-car wireless connections for the
delivery of our navigation services to end users.
We generally provide our navigation services from third party hosted servers, which require close integration with the wireless carriers’
networks. We may be unable to provide high quality services if the wireless carriers’ networks perform poorly or experience delayed response
times. Our future success will depend on the availability and quality of our wireless carrier customers’ networks in the United States and abroad
to run our mobile navigation services. This includes deployment and maintenance of reliable networks with the speed, data capacity and security
necessary to provide reliable wireless communications services. We do not establish or maintain these wireless networks and have no control
over interruptions or failures in the deployment and maintenance by wireless carrier customers of their network infrastructure. In addition, these
wireless network infrastructures may be unable to support the demands placed on them if the number of subscribers increases, or if existing or
future subscribers increase their use of limited bandwidth. Market acceptance of our mobile navigation services will depend in part on the quality
of these wireless networks and the ability of our wireless carrier customers to effectively manage their subscribers’ expectations.
In addition, certain automobile navigation applications rely on wireless connections between the vehicle and our network. We have no
influence or control over the vehicle’
s wireless equipment and if it does not operate in a satisfactory manner, our ability to provide those services
would be impaired and our reputation would be harmed.
Wireless communications have experienced a variety of outages and other delays as a result of infrastructure and equipment failures and
could face outages and delays in the future. These outages and delays could affect our ability to provide our navigation services successfully. In
addition, changes by a wireless carrier to its network infrastructure may interfere with the integration of our servers with their network and
delivery of our navigation services and may cause end users to lose functionality for services they have already purchased. Any of the foregoing
could harm our business, operating results and financial condition.
We cannot control the quality standards of our wireless carrier customers, their mobile phone providers, automobile manufacturers and
other technology customers. We cannot guarantee that the mobile phones or in-
car wireless equipment are free from errors or defects. If errors or
defects occur in mobile phones or services offered by our wireless carrier customers, it could result in consumers terminating our services,
damage to our reputation, increased customer service and support costs,
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reduced or varied protection for intellectual property rights in some countries.
• requirements to replace outsourced hosting with third party data centers for which we provide equipment due to cost, natural
disasters or inadequate quality of services;
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the replacement of outdated or failing equipment; and
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the acquisition of key technologies to support or expand our products and services.