Telenav, Inc.– Nasdaq: TNAV
Telenav, Inc. announced that it has settled a lawsuit accusing the firm of patent infringement brought by Vehicle IP, LLC. The one-time payment of $8 million will have a material impact on 2016 Q4 results. Telenav, Inc. is a provider of location based services including voice guided navigation, on mobile phones.
Telenav Inc. trades on the Nasdaq under the ticker TNAV. News of the settlement sent TNAV gapping up from its Thursday close of $7. Today TNAV opened at $8.10 and reached as high as $8.70 on heavy volumes.
In the press release Michael Strambi, Chief Financial Officer of Telenav stated “We experienced higher than expected revenue for the December quarter, which was driven by increases in both our Auto and Advertising businesses. However, operating expenses were greater than anticipated due to the one-time settlement and license fee. At December 31, 2016, we had cash and short-term investments of $103.7 million. The payment for the settlement will occur during January 2017. As of September 30, 2016, we had accrued a liability of $850,000 related to the case, so the settlement’s impact on the December quarter will be reduced by that accrued amount. We will provide our full financial results on our earnings call scheduled for January 31st.” The company will report results for the second quarter fiscal 2017 on Tuesday, January 31, 2017 with an investor conference call and live webcast at 2:00 p.m. PT (5:00 p.m. ET). To access the conference call, dial 877-795-3648 (toll-free, domestic only) or 719-325-4755 (domestic and international toll) and enter pass code 5663996.
Telenav Inc. is followed by four firms. All four rate TNAV as a “Strong Buy” with a consensus price target of $10.75. For 2016 Telenav Inc reported an EPS loss of $0.85 down from their reported 2015 EPS loss of $0.58. However, sales improved during that period. In 2015 holders of TNAV saw reported revenues of $160.2 million and in 2016 reported revenues were $183.3 million
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|Last Price a/o 10:22 AM EST||$ 8.23|
|Market Cap||$297 million|
|Shares Outstanding||42.5 million|
|Share Float||26.53 million|
|Short Interest Ratio||3.95|