Telenav Issues Letter to Shareholders to Provide Update Related to COVID-19 - Seite 2

We will continue to closely monitor demand and sales amongst our OEM partners, engaging with them on a daily basis to gauge future OEM production levels and demand for our products. 

Prior to this global pandemic, we actively strengthened our business by improving our gross margins, enhancing our cost controls and generating strong cash flow. Our cash increased over the past year from $86 million to $129 million at December 31, 2019. We expect to have cash, cash equivalents and short-term investments totaling approximately $120 million as of March 31, 2020. These amounts exclude restricted cash held at the end of the quarter, but do reflect approximately $11 million we used in the quarter for investments and share repurchases. We believe our cash position will enable us to successfully navigate through this uncertain period.

In this time of uncertainty, we look forward to providing you further updates on our progress.

Our management team has the experience, confidence and strategy to drive through challenging times. We will continue to maintain a tight focus on costs and operations to manage our business responsibly considering the continuing economic environment.

Stay safe and healthy. 

Sincerely,

HP
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Forward Looking Statements

This stockholder letter contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to anticipated financial performance, management’s plans and objectives for future operations, business prospects, and other matters. Any forward-looking statement made in this stockholder letter speaks only as of the date on which it is made. Telenav undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. Actual events or results may differ materially from those described in this document due to a number of risks and uncertainties. These forward-looking statements are based on management’s current beliefs and assumptions and on information currently available to management. Telenav cautions that these statements are subject to risks and uncertainties, many of which are outside of Telenav’s control and could cause future events or results to be materially different from those stated or implied in this document, or to not occur at all. These potential risks and uncertainties include, among others: the impact of the COVID-19 on business activity, including but not limited to the shutdown of manufacturing operations by Ford, GM and other automobile manufacturer customers, consumer demand for new vehicles and the Company’s operations; when Ford, GM and other automobile manufacturer partners will resume partial or full production and the impact the continued period of reduced volume of new vehicles being produced will have our revenue and operating results; the Company’s ability to achieve future revenue currently estimated under customer engagements, including the Company’s ability to determine, achieve and accurately recognize revenue under customer engagements, including specifically related to the Company’s transaction with Grab Holdings; the Company’s ability to manage its operations and expenses and generate and maintain levels of cash to sustain its operations; the Company’s ability to maintain operations and project schedules through work-from-home procedures and resources; whether the Company’s current and future cash will enable it to maintain current or minimum operations over future periods; and macroeconomic and political conditions in the U.S. and abroad, in particular China. The Company discusses these risks in greater detail in “Risk Factors” and elsewhere in its Form 10-K for the fiscal year ended June 30, 2019 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 management’s beliefs and assumptions only as of the date made. You should review the company’s SEC filings carefully and with the understanding that actual future results may be materially different from what the Company expects.