TeleNav 2015 Annual Report Download - page 58

Table of Contents
Our assumptions, judgments and estimates relative to the current provision (benefit) for income taxes take into account current tax laws,
our interpretation of current tax laws and possible outcomes of current and future audits conducted by foreign and domestic tax authorities. We
have established reserves for income taxes to address potential exposures involving tax positions that could be challenged by tax authorities. In
addition, we are subject to the periodic examination of our income tax returns by the Internal Revenue Service, or IRS, and other domestic and
foreign tax authorities. Although we believe our assumptions, judgments and estimates are reasonable, changes in tax laws or our interpretation
of tax laws and the resolution of 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 2015 , 2014 and 2013 , 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.
47
Fiscal Year Ended June 30,
Consolidated Statements of Operations Data
2015 2014 2013
Revenue:
(in thousands)
Product
$
100,768
$
72,747
$
69,162
Services
59,471
77,566
122,638
Total revenue
160,239
150,313
191,800
Cost of revenue:
Product
55,270
36,775
38,164
Services
23,514
24,066
30,949
Total cost of revenue
78,784
60,841
69,113
Gross profit
81,455
89,472
122,687
Operating expenses:
Research and development
68,060
60,573
60,349
Sales and marketing
26,975
33,138
30,435
General and administrative
23,606
26,176
24,765
Restructuring costs
1,150
4,412
1,671
Total operating expenses
119,791
124,299
117,220
Operating income (loss)
(38,336
)
(34,827
)
5,467
Other income, net
2,267
1,288
1,207
Income (loss) before provision (benefit) for income taxes
(36,069
)
(33,539
)
6,674
Provision (benefit) for income taxes
(13,006
)
(4,015
)
1,093
Income (loss) from continuing operations, net of tax
(23,063
)
(29,524
)
5,581
Income from discontinued operations, net of tax —
—
7,486
Net income (loss)
$
(23,063
)
$
(29,524
)
$
13,067