TeleNav 2015 Annual Report Download - page 49

Table of Contents
tax, and adjusted EBITDA provide useful information to investors and others in understanding and evaluating our operating results in the same
manner as our management and board of directors.
Diluted non-GAAP income (loss) from continuing operations, net of tax, per share is calculated as non-GAAP income (loss) from
continuing operations, net of tax, divided by the diluted weighted average number of shares outstanding during the period.
These non-GAAP measures have limitations as analytical tools, and you should not consider them in isolation or as substitutes for analysis
of our financial results as reported under GAAP. Some of these limitations are:
Because of these and other limitations, you should consider non-GAAP gross margin, non-GAAP income (loss) from continuing
operations, net of tax, adjusted EBITDA from continuing operations and diluted non-GAAP income (loss) from continuing operations, net of
tax, per share alongside other GAAP-
based financial performance measures, including various cash flow metrics, net income (loss) and our other
GAAP financial results.
The following tables present reconciliations of gross margin to non-GAAP gross margin, income (loss) from continuing operations, net of
tax, to non-GAAP income (loss) from continuing operations, net of tax, and income (loss) from continuing operations, net of tax, to adjusted
EBITDA from continuing operations for each of the periods indicated:
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• although depreciation and amortization are non-
cash charges, the assets being depreciated and amortized may have to be replaced in the
future, and adjusted EBITDA from continuing operations does not reflect cash capital expenditure requirements for such replacements
or for new capital expenditures;
• non-GAAP gross margin, non-GAAP income (loss) from continuing operations, net of tax, and adjusted EBITDA from continuing
operations do not reflect the potentially dilutive impact of equity-based compensation;
• adjusted EBITDA does not reflect tax payments that historically have represented a reduction in cash available to us or tax benefits that
may arise as a result of generating net losses; and
• other companies, including companies in our industry, may calculate adjusted EBITDA or similarly titled measures differently, which
reduces its usefulness as a comparative measure.
Automotive Advertising Mobile Navigation Total
Fiscal Year Ended June 30, Fiscal Year Ended June 30, Fiscal Year Ended June 30, Fiscal Year Ended June 30,
2015 2014 2013 2015 2014 2013 2015 2014 2013 2015 2014 2013
Gross margin
45
%
51
%
46
%
35
%
40
%
36
%
73
%
74
%
76
%
51
%
60
%
64
%
Adjustments:
Capitalized software and developed technology
amortization
1
%
—
%
—
%
9
%
15
%
(31
)%
1
%
2
%
(3
)%
2
%
2
%
1
%
Non-GAAP gross margin
46
%
51
%
46
%
44
%
55
%
5
%
74
%
76
%
73
%
53
%
62
%
65
%