"With this release, we've made Navigator easier and faster to use, and also added new capabilities that allow the user to personalize their navigation experience," said Sal Dhanani, co-founder and vice president of products for TeleNav. "We're confident that when our users try this version, they'll immediately benefit from the enhancements we've made and enjoy the faster, simpler, more personalized experience."

A Personalized Experience: Multiple Route Suggestions and Commute Alerts

TeleNav GPS Navigator 6.2 now offers Multiple Route Suggestions and allows users to choose which route they prefer to take. Once a destination is entered, users are presented with up to three route suggestions overlaid on a map with route distance and estimated drive times. Users can review information for each route and select the option that best fits their personal driving needs.

TeleNav GPS Navigator 6.2 also includes a new user interface for the existing Commute Alert feature, making it easier for users to set and receive automatic alerts at a pre-selected time to show current traffic conditions along their daily commute. Users can choose to have these alerts sent via e-mail, SMS, or within the TeleNav GPS Navigator application to receive their personal daily commute information before hitting the road.

Search Made Simple

TeleNav GPS Navigator 6.2 includes Quick Search, a new feature designed to make finding local places quick and easy. Located on the application's home page, users can simply touch the Quick Search box and type an address, landmark, category (i.e. Italian Food), or a business name. TeleNav GPS Navigator 6.2 uses predictive search technology to suggest results as the user types their desired location. Quick Search eliminates the need to navigate menus in order to find and drive to a location.

TeleNav has included an expanded Speech Recognition feature, allowing users to press a single button on the home page and speak a command. In addition to the Speech Recognition commands available in previous versions of TeleNav GPS Navigator used for finding addresses ("1130 Kifer Road") or businesses ("Find gas stations"), TeleNav GPS Navigator 6.2 provides voice access to more information, for questions such as "How's the weather" or "How's traffic."

TeleNav has also made its local search functionality easier, faster and more comprehensive, adding millions of new Points of Interest (POIs) to its search database, giving TeleNav users access to more than 22 million U.S. business locations, historical landmarks, airports and more.

"There's nothing more frustrating when using a GPS product than to search for a location and not get a result. If a user can't find the destination they're looking for, the quality of the navigation features doesn't matter," said Dhanani. "We've put a lot of effort into ensuring that our users are able to find the destinations they're searching for."

Additional Features and Enhancements

In addition to multiple route options and search enhancements, TeleNav GPS Navigator 6.2 includes enhanced map performance and design, allowing for faster panning and page refreshes when users view the map screen within the application. The map view also includes one-click options to layer information on the map screen, such as traffic flow information and the locations of traffic cameras.

TeleNav GPS Navigator 6.2 also features a new POI search screen interface designed to make searching for business categories more simple. When viewing the POI category page, users are presented with an easy to read view of popular business categories and can access those listings with one-click.

Availability

TeleNav GPS Navigator 6.2 is available immediately on the Android Marketplace to AT&T customers (as AT&T Navigator 2.2) using the Samsung Captivate™, HTC Aria, Sony Ericsson Xperia™ X10, or Motorola BACKFLIP™ devices running Android OS version 2.1 or above. The application will be available soon on additional Android devices through other wireless carriers.

Images of TeleNav GPS Navigator 6.2 are available at http://www.flickr.com/photos/23382466@N03/sets/72157625684926753/ and a demonstration video of new features is available at http://www.youtube.com/watch?v=8NocouhAMzA.

“A key goal of the QNX CAR Application Platform is to leverage the latest innovations in mobile devices and consumer electronics in a way that is appropriate for in-vehicle use,” said Andrew Poliak, director of automotive business development, QNX Software Systems. “It just made sense to partner with TeleNav to make sure our products work together to offer the best in navigation technology.”

“QNX is clearly a leader when it comes to automotive operating systems,” said Hassan Wahla, vice president of business development for TeleNav. “We look forward to working with the QNX team to bring OEMs and Tier One suppliers high quality, customized connected navigation and comprehensive local search capabilities.”

QNX Software Systems is the global leader in operating systems and middleware for the in-car telematics and infotainment market, and has licensed its technology for use in more than 20 million in-vehicle systems worldwide. The QNX CAR Application Platform is designed to help the automotive industry reduce the cost and effort of building in-car infotainment systems. It allows customers to evaluate a rich set of pre-integrated technologies. 

Demonstrations will be held this week during CES at the Renaissance Hotel in the “Five Spot Room” at 3400 Paradise Road. To book an appointment, please contact Mark Cummings-Hill, business development for TeleNav at MarkCH@telenav.com.

"With TeleNav's worldwide routing and navigation experience, Ford now can offer high quality connected services to drivers in a number of countries," said HP Jin, president, CEO and co-founder of TeleNav. "The availability of MyFord Touch outside of North America is further evidence of TeleNav's growing presence in the auto industry."

MyFord Touch and MyLincoln Touch will allow customers to interact with the navigation system through a touch screen interface or SYNC's voice recognition capabilities to find local information and navigate to their destinations. The system includes an 8-inch touch screen in the center stack and dual 4.2-inch screens in the instrument cluster to showcase full color maps and guidance information. TeleNav's SD card-based navigation system provides an easily updateable option compared to CD, DVD or hard-drive-based systems. TeleNav's global navigation solution includes regional and local information such as languages, guidance and maps.

Similar to the U.S. version, MyFord Touch in China, Europe and South America will include Eco-Route, an application developed by TeleNav that calculates a fuel-efficient option for each route. When the driver enters a destination into the system, MyFord Touch accesses historical and real-time traffic data as well as speed limits and road angulations to calculate three drive route options: fastest, shortest and eco-friendly. Initial Ford testing indicated Eco-Route can be up to 15 percent more fuel-efficient when compared to other route options provided by MyFord Touch.

"Successful navigation solutions for automakers have to be cost-effective, upgradeable and offer expanded customer benefits such as local search and real-time information," said Thilo Koslowski, vice president and automotive practice leader at Gartner. "For drivers, in-vehicle navigation remains a top demand and the use of an advanced, global navigation solution allows automakers to effectively meet consumers' needs." 

MyFord Touch and MyLincoln Touch are currently available in the U.S. in the 2011 Ford Edge and Lincoln MKX, and soon in the 2011 Ford Explorer. Starting in 2011 with the all new Ford Focus, TeleNav's connected navigation solution will be available globally in China, Europe and South America.

Survey Results Indicate:

• No Fly Zone – Seventy-three percent of survey respondents said they plan to drive to events this holiday season, five percent said they plan to fly, two percent said they plan to use another form of transportation such as a bus or train, and 20 percent said they don't plan to travel for the holidays this year.

  More than one-third of Americans who plan to drive this holiday season indicated they will travel more than 50 miles each way. Fourteen percent will drive more than 200 miles each way.

• Times are Tough (and the TSA is Rough) – More than one-fourth of respondents who plan to drive this holiday season reported that the current state of the economy influenced their decision to drive instead of fly. Additionally, one-third of the 20 percent of Americans who don't plan to travel at all indicated that the current state of the economy influenced their decision to stay at home this year. Of those respondents who plan to travel this season but are not flying, 13 percent indicated that the recent implementation of full-body scanners by the TSA influenced their decision to avoid flying.

• Making the Trip for the Perfect Gift – When it comes to saving money on that perfect gift, Americans indicated they're willing to hit the road in order to save a buck at the register. While only nine percent of respondents said they would drive more than 50 miles each way to save $50 on a gift, 23 percent indicated they would drive more than 50 miles to save $100 and 57 percent said they would drive that distance to save $500. Fifteen percent of respondents said they would drive between 100 and 200 miles each way to save $500 on a gift.

  One-third of the survey respondents reported that between 51 and 100 miles is the maximum distance they would be willing to drive each way if there were only one store that had the "must have" item on their holiday shopping list. More than fifty percent of respondents said the maximum distance they would travel for their must have gift is below 50 miles each way.

• Ready, Set, Shop – While most gifts can be found online, respondents indicated they still plan to roam the aisles of their favorite retailers this holiday season. Thirty-five percent of Americans indicated they plan to purchase more than 75 percent of their holiday gift items from a store location. Only two percent of respondents said they will buy all of their items online.

  Nearly 40 percent of survey respondents said they plan to go shopping on Black Friday. Of those respondents, almost 70 percent reported that they plan out a route for the stores they want to visit prior to leaving their home. Nearly half of Black Friday shoppers plan to visit more than four stores during their shopping trip, and slightly more than 55 percent plan to arrive at the first store sometime before 6:00 a.m.

  One-third of respondents who plan to shop on Black Friday indicated that items selling out quickly is the worst part of the shopping experience, followed closely by overcrowding in the retail stores.

• Patience is a Virtue (Not During the Holidays) – While respondents indicated they're willing to travel for the perfect gift, most aren't willing to wait long to purchase that gift once they arrive. Only 10 percent of Americans said they would wait longer than 30 minutes for a parking spot at a store with their must have gift. Thirty-five percent said they wouldn't wait for any length of time for a parking spot. Results are similar once respondents enter the store with only 22 percent reporting that they would wait in line for more than 30 minutes for the must have gift on their shopping list.

For additional findings, information and images, please visit http://www.telenav.com/about/pr-holiday-travel-plans/report-20101124.html.

* The survey sample consisted of 527 U.S. citizens of driving age. Responses were collected via online survey during the week of November 15, 2010.

"Our GPS navigation users are in their vehicles, actively looking for a specific service or business to drive to," said Ky Tang, director of marketing for TeleNav. "Our analysis of the businesses our users are actively searching for helps brands understand the behavior and preferences of on-the-go consumers."

National Data Analysis Results:

• Fast Food Nation – TeleNav's data analysis found that six of the top ten most searched restaurants in the Nation are fast-food locations. McDonald's tops the charts as the number one searched restaurant, with more than twice as many searches as second place Subway. Taco Bell, KFC and Burger King round out the top five, respectively.
• Hotel Head-to-Head – Hotels are a popular search destination among TeleNav's users as they use their mobile GPS to travel to new locations. The company's data indicated that Holiday Inn is the number one searched for hotel with nearly twice as many searches for its properties than second place Marriott. Hampton took third place, followed by Motel 6 and Hilton.
• Big Box Battle – With shopping being one of the Nation's favorite activities, TeleNav analyzed data to determine which large retail stores consumers search for most while on the road. The results found that Walmart tops the list, with more than three times as many searches as second place Target. Costco took the third position among the top searched large retailers. Walmart also holds the distinction as being the top searched keyword overall among TeleNav users.
• Caffeine Clash – So where are consumers traveling to get their morning caffeine fix? TeleNav's results indicated that Starbucks is the overwhelming choice for GPS users seeking coffee on the go, with more than five times the number of searches than Dunkin' Donuts. Starbucks is the second most searched keyword among all searches conducted by TeleNav's users.
• DIY Duel – With many Americans becoming Do-It-Yourselfers (DIY), home improvement centers have become popular retail locations. TeleNav's data found that Home Depot is a two to one favorite among its users over Lowe's when it comes to total searches conducted. Combined searches for Ace Hardware and Menards, in third and fourth place, respectively, accounted for less than 10 percent of searches for the top four home improvement locations.

Search Data and TeleNav's Mobile Advertising Platform

TeleNav recently launched a navigation-based mobile advertising platform that enables businesses, such as restaurants, hotels and retail stores, to place a sponsored listing at the top of the search results located in its mobile navigation applications. When users click on the sponsored listing, the advertiser can provide additional information to the user such as a coupon or menu information. The user can then choose to call, map or receive turn-by-turn directions to drive to the business location, all of which are actions TeleNav measures and reports as metrics to advertisers.

"This usage analysis demonstrates the wealth of data and insights we have into what drivers are searching for when they're on the road," said Tang. "If a brand is not a top searched destination, they can use our ad platform to place their listing at the top of the search results list, giving them more visibility with our users. If the brand is already frequently searched by our users, our ad platform can be used to include deals or coupons within their listings, rewarding consumers for being loyal to their brand and helping to increase the number of users who choose to visit a location after conducting a search."

TeleNav representatives are available at ad:tech New York booth #1534 to provide more information on the data analysis and TeleNav's mobile ad platform.

Additional information on TeleNav's data analysis is available at http://www.telenav.com/about/pr-brand-data/report-20101103.html. For more information regarding TeleNav's advertising platform, visit www.telenav.com/ads.

* Keyword search data was collected anonymously from users of TeleNav GPS navigation products in Sept. 2010.

MyTies allows iPhone users to leverage their personal address book and contacts to create multiple private networks by inviting contacts to join and form groups. Users can form separate groups based on whom they want to share information with, for example, a group of co-workers, a group of family members and a group of college friends. This multiple-group structure allows users to easily choose which group or groups can view their messages, photos, videos and location information.

With one third of Americans worried about how much information is available about them online, MyTies recognizes the privacy of direct mobile communication and gives users the power to turn their contacts into an interactive network. New users will be allocated a number of initial free invitations to create private groups and in the future, additional invitations can be obtained through in-app purchasing.

Unlike web-based social networking sites, MyTies will not publically show information to anyone outside of a user’s chosen groups. In addition, MyTies reverses the current practice of selling and sharing users’ personal information with advertisers, and does not connect to third party networks. MyTies reduces unsolicited content through enhanced privacy settings that enable users to specify individual and group preferences.

“MyTies restores privacy and gives users full control of their personal network and the information they choose to share among the various groups of people that make up that network,” said Sal Dhanani, TeleNav co-founder and vice president of products. “It creates a direct communication environment between groups of people by enabling users to easily identify the specific group they want to privately share information with.”

From moms sharing family photos to colleagues collaborating on a project, MyTies provides users with control when disclosing information by combining an easy group communication system with a high level of privacy. MyTies includes the following features:

• Control Your Information – MyTies users can privately update their status, content or location without those outside of the specific group(s) they select seeing the information. When a user leaves a group all of their posted content is immediately deleted from the app and permanently deleted from TeleNav’s servers within seven days.
• Share Content Without the Web – MyTies leverages the iPhone’s address book and users’ contacts to establish groups, and is not dependent on web-based user profiles.
• Reduce the Clutter – MyTies only sends and receives information from your contacts and does not show postings from irrelevant users, game sites or corporate networks.
• Easy Group Communication – Keep teams, groups and family members updated with in-app group messaging. For example, users can announce and map a meeting via MyTies.
• Location-Based Updates* – MyTies allows users to tag postings on a map with an exact location for added context. Depending on the user’s preferences, MyTies can also show where your closest friends are on a map.
• Get Turn-By-Turn Directions – MyTies provides static turn-by-turn directions to any group member’s location-tagged posting.
• Privacy Protection – MyTies will not sell personal information to advertisers, enable internet-based searching or allow anyone outside of the user-created group to view information.

iPhone users can create a MyTies account by downloading the application and registering a name, phone number and e-mail address. The application uses credits, called “Invites,” to allow a user to ask others to join a MyTies group. Each MyTies account comes with 10 free Invites. In the near future, users can purchase additional Invites to add more members to any group for 10 cents each. For a limited time, the first 5,000 users to redeem the promotional code PRIVACY within the application can add an additional 20 Invites for free.

MyTies is available immediately on the Apple App Store for the iPhone 3G, iPhone 3GS and iPhone 4.0. To download MyTies to the iPhone, please visit the Apple App Store at http://itunes.apple.com/us/app/myties/id386406672. For more information on MyTies, go to http://www.myties.com, http://twitter.com/my_ties, or follow us on Facebook at http://on.fb.me/MyTies.

*Phone must have GPS capabilities enabled.

"We have made it easy for developers to use our APIs across all mobile platforms and give users access to location sharing from any mobile application or website," said Dariusz Paczuski, vice president of marketing for TeleNav. "When a developer wants to help their users drive to or share a location, they won't have to ask themselves which operating systems they can and can't support. With the TeleNav Developer Platform, they have one simple solution to deliver a consistent user experience whether they develop their app for Android, BlackBerry, iPhone, Windows Phone 7, or any other major mobile platform."

TeleNav Connect

TeleNav Connect is an app-to-app API that enables mobile application developers to provide users with a seamless process for launching one of TeleNav's location-based services from within their application. TeleNav Connect is designed to streamline and simplify the user experience of a developer's application by guiding users to specific locations. For example, an application providing restaurant information and reviews can use the TeleNav Connect API to include a "Drive-To" button within each listing. If the user chooses this option and is a TeleNav subscriber, TeleNav's turn-by-turn navigation application will launch and guide the user to the restaurant's location. In addition to voice-guided, turn-by-turn navigation, developers can use TeleNav Connect to launch maps, driving directions, real-time traffic, and drive-time local search results from within their applications.

"WHERE is all about helping people discover where to go. TeleNav Connect helps our users get 'from WHERE to there' by enabling us to deliver an enhanced, seamless user experience," said David Chang, vice president, Products, WHERE, Inc. "The integration of the API also allows us to demonstrate to local merchants that our application not only helps consumers discover their business, but also drive to their front door."

"Utilizing TeleNav's API allows us to deliver a unique experience to users of Prompt, the punctuality app, by enabling turn-by-turn directions from within our application. The API closes the loop for our users – when there is unexpected traffic, Prompt notifies the user to leave for a meeting early and TeleNav will guide them there," said Julian Bourne, founder and CEO of Proxpro, Inc. "Because TeleNav has such broad device support and a large user base, we can use the API to offer this enhanced experience across all of the mobile platforms for which we develop."

TeleNav Share

TeleNav Share is an API designed to help users easily send an address from a website or a mobile application directly to their phone. Traditionally, when a user locates an address on a website, they must manually launch their phone's navigation application and type in the address. With TeleNav Share, developers can mobilize addresses on their websites by using the TeleNav Share API to place a "Send to Phone" option next to address listings. When a user clicks on this option, they are able to enter phone numbers and instantly send the address to their phone or share it with friends. If the user is one of the millions of TeleNav subscribers, the address will be available in the "Favorites" menu when they launch the application. For other users, the address will be sent to their phone via text message.

Developer Support

The TeleNav Developer Platform, which includes TeleNav Connect and TeleNav Share, provides developers with a variety of tools designed to make integration of TeleNav's APIs into their applications quick and simple. TeleNav has launched a developer portal, http://developer.telenav.com, to provide developers with comprehensive information and documentation for implementing the company's APIs. The portal is designed to clearly explain the benefits each available API offers and provide support for participating developers through help forums and guides.

"Our goal is to make it as easy as possible for developers to offer the best search, navigation, and location experience for their users, and we feel the APIs and developer resources we offer help them do just that," said Paczuski. "Developers need points of differentiation in the crowded app market to grow their user base and reduce churn. Seamless navigation provides that differentiation and ensures a positive user experience with both the developer's application and TeleNav's location services."

Developers interested in incorporating TeleNav's APIs into their applications can register at http://developer.telenav.com or contact developer@telenav.com to receive more information and documentation.

Financial Highlights

• Revenue for the first quarter of fiscal 2011 grew 42 percent over the prior year to $51.1 million.
• Net income for the first quarter of fiscal 2011 grew 52 percent over the prior year to $12.4 million.
• Cash generated from operations for the first quarter of fiscal 2011 was $20.2 million.
• Average monthly revenue per end user (ARPU) for the first quarter of fiscal 2011 decreased 14 percent over the first quarter of fiscal 2010 to $0.94.
• Average monthly paying end users for the first quarter of fiscal 2011 increased 65 percent year over year to 17.7 million.

"We continued to achieve record number of average monthly paying end users, which grew over 1.6 million quarterly to 17.7 million in the September quarter," said HP Jin, president, CEO and co-founder of TeleNav. "We are also leveraging our core business to grow revenue from premium navigation, automotive, enterprise LBS, and mobile advertising and commerce opportunities, which comprised more than five percent of our total revenue in the September quarter."

Revenue for the first quarter of fiscal 2011 was $51.1 million, compared to revenue of $49.5 million for the fourth quarter of fiscal 2010 and $36.0 million for the first quarter of fiscal 2010. Revenue for the first quarter of fiscal 2011 reflects the one month impact from the amended Sprint agreement.

Net income for the first quarter of fiscal 2011 was $12.4 million, or $0.27 per diluted share, compared to net income of $10.6 million, or $0.24 per diluted share, for the fourth quarter of fiscal 2010 and $8.1 million, or $0.15 per diluted share, for the first quarter of fiscal 2010.

Non-GAAP net income for the first quarter of fiscal 2011 was $13.0 million, or $0.29 per diluted share, compared to non-GAAP net income of $13.0 million, or $0.31 per diluted share, for the fourth quarter of fiscal 2010 and $8.3 million, or $0.22 per diluted share, for the first quarter of fiscal 2010. Non-GAAP net income excludes stock-based compensation expense net of the related tax effect. The shares used in the calculation of TeleNav's non-GAAP net income per share assume the conversion of all outstanding preferred stock into shares of common stock using the as-if converted method as of the beginning of each period presented or the date of issuance, if later.

"Our cash, cash equivalents and short-term investment balances increased during the quarter by $18.2 million, ending the quarter with a total of $131.1 million," said Douglas Miller, chief financial officer of TeleNav. "In addition, our accounts receivable rose to $57.3 million as of September 30, 2010, of which we collected $46.5 million to date in the month of October, further increasing our cash balances."

Recent Business Highlights

• In September 2010, TeleNav amended and extended its Master Application and Services Agreement with Sprint, its largest customer, and also amended its License Agreement with Tele Atlas, a supplier of map and points of interest content used in TeleNav's services.
• In September 2010, TeleNav launched an updated navigation-based mobile advertising platform, that allows advertisers to reach millions of on-the-go users by delivering a relevant and targeted ad to users based on the location and context of their search query, and by providing advertisers with action-based metrics such as "Drive-to Rate," a metric that captures the number of users who viewed an ad and chose to drive to the advertiser's business location.
• In August 2010, TeleNav announced the availability of its in-dash, connected navigation product with the recent rollout of the 2011 Ford Edge, and the 2011 Lincoln MKX, called MyFord Touch and MyLincoln Touch, respectively.
• In August 2010, TeleNav announced the availability of its OnMyWay mobile application for the iPhone and Android devices. Initially launched in March 2010 for BlackBerry devices, OnMyWay automatically alerts a pre-determined person or group of people of a driver's trip status and estimated time of arrival (ETA).

Business Outlook

TeleNav offers the following guidance for the quarter ending December 31, 2010:

• Total revenue is expected to be approximately $45.0 to $47.0 million and reflects a full three month impact from our recently renegotiated agreement with Sprint;
• Gross margins are expected to be approximately 79 to 80 percent;
• Non-GAAP operating expenses are expected to be approximately $21.0 to $23.0 million, and exclude approximately $900,000 in stock-based compensation;
• GAAP net income is expected to be approximately $6.5 to $7.5 million;
• GAAP diluted net income per share is expected to be approximately $0.14 to $0.16;
• Non-GAAP net income is expected to be approximately $7.0 to $8.0 million;
• Non-GAAP diluted net income per share is expected to be approximately $0.15 to $0.17;
• Effective tax rate is expected to be 41 percent;
• Weighted-average diluted shares outstanding are expected to be 45 to 46 million.

TeleNav offers the following guidance for the fiscal year ending June 30, 2011:

• Total revenue is expected to be approximately $187.0 to $192.0 million;
• Gross margins are expected to be 78 to 80 percent;
• Non-GAAP operating expenses are expected to be approximately $90.0 to $94.0 million, and exclude approximately $4.0 million in stock-based compensation;
• GAAP net income is expected to be approximately $29.0 to $33.0 million;
• GAAP diluted net income per share is expected to be approximately $0.64 to $0.72;
• Non-GAAP net income is expected to be approximately $32.0 to $36.0 million;
• Non-GAAP diluted net income per share is expected to be approximately $0.70 to $0.78;
• Effective tax rate is expected to be 41 percent;
• Weighted-average diluted shares outstanding are expected to be 45 to 46 million.

The above information concerning the forecast for the quarter ending December 31, 2010 and the fiscal year ending June 30, 2011 represents the company's outlook only as of the date hereof, and TeleNav undertakes no obligation to update or revise any financial forecast or other forward looking statements, as a result of new developments or otherwise.

Conference Call

The company will host an investor conference call and live webcast today at 2:00 p.m. PDT (5:00 p.m. EDT) to discuss its first quarter fiscal 2011 results and outlook for the second quarter of fiscal 2011. To access the conference call, dial 888-724-9493 or 913-312-1456. The webcast will be accessible on TeleNav's investor relations website at http://investor.telenav.com/. A replay of the conference call will be available approximately two hours after its completion and will be available through Tuesday, November 2, 5:00 p.m. PDT. To access the replay, please dial 888-203-1112 or 719-457-0820 and enter pass code 2154783.

Use of Non-GAAP Financial Measures

TeleNav prepares its financial statements in accordance with generally accepted accounting principles for the United States (GAAP). The non-GAAP financial measures such as net income and earnings per share information for the first quarter of fiscal 2011 and the first and fourth quarter of fiscal 2010 included in this press release are different from those otherwise presented under GAAP. The following are explanations of each type of adjustment that we incorporate into non-GAAP financial measures:

Stock-based compensation expense relates to equity incentive awards granted to our employees, directors, and consultants accounted for under GAAP. Stock-based compensation expense has been and will continue to be a significant recurring expense for TeleNav. While we include the dilutive impact of such equity awards in weighted average shares outstanding, the expense associated with stock-based awards reflects a non-cash charge that we exclude from non-GAAP net income.

Our non-GAAP tax rate differs from the GAAP tax rate due to the elimination of the tax rate effect of the GAAP stock compensation expenses that are being eliminated to arrive at the non-GAAP expenses.

The shares used to compute non-GAAP basic and diluted net income per share include the assumed conversion of all outstanding shares of convertible preferred stock into shares of common stock using the as-if converted method as of the beginning of each period presented or the date of issuance, if later. In May 2010, in conjunction with the closing of our initial public offering, all of our outstanding preferred stock was converted into shares of our common stock.

TeleNav has provided these measures in addition to GAAP financial results because management believes these non-GAAP measures help provide a consistent basis for comparison between quarters and fiscal year growth rates that are not influenced by certain non-cash charges and therefore are helpful in understanding TeleNav's underlying operating results. These non-GAAP measures are some of the primary measures TeleNav's management uses for planning and forecasting. These measures are not in accordance with, or an alternative to, GAAP and these non-GAAP measures may not be comparable to information provided by other companies. Reconciliations of the GAAP to non-GAAP results are presented at the end of this press release.

Forward Looking Statements

This press release contains forward-looking statements that are based on TeleNav's management's beliefs and assumptions and on information currently available to our management. Forward-looking statements include information concerning TeleNav's anticipated or assumed future financial results, shares outstanding and anticipated business activities. Actual events or results may differ materially from those described in this document due to a number of risks and uncertainties. These potential risks and uncertainties include, among others, fluctuations in TeleNav's quarterly and annual operating results; TeleNav's dependence on Sprint and AT&T for a substantial majority of its revenue; changes in the contractual relationships with Sprint, AT&T and other wireless carriers to whom TeleNav provides services, competition from other market participants who may provide comparable services to subscribers without charge; TeleNav's inexperience in the automotive navigation market; TeleNav's inexperience in the mobile advertising market; TeleNav's ability to estimate and sustain or increase its revenue and profitability; TeleNav's ability to attract, migrate and retain new wireless carriers and auto manufacturers; TeleNav's ability to issue new releases of its products and services and expand its product portfolio; changes to current accounting policies which may have a significant, adverse impact upon TeleNav's financial results; the introduction of new products by competitors or the entry of new competitors into the markets for TeleNav's services and products; the impact of current or future intellectual property litigation and claims for indemnification and litigation related to U.S securities laws and economic and political conditions in the US and abroad. We discuss these risks in greater detail in "Risk factors" and elsewhere in our Form S-1 and other filings with the U.S. Securities and Exchange Commission (SEC), which are available at the SEC's website at www.sec.gov. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Also, forward-looking statements represent our management's beliefs and assumptions only as of the date made. You should review our SEC filings carefully and with the understanding that our actual future results may be materially different from what we expect.

Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.