TeleNav 4Q beats Street, but forecast disappoints

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SUNNYVALE, Calif. (AP) — TeleNav Inc. issued forecast Thursday for the current quarter and fiscal year that fell short of Wall Street’s expectations and its shares sank nearly 33 percent in extended trading.

The guidance accompanied the navigation service’s company’s fiscal fourth-quarter report that showed its profit inched up as rising expenses overshadowed revenue growth.

For the quarter that ended June 30, TeleNav earned $9.0 million, or 20 cents per share, compared with $8.9 million, or 24 cents per share, in the year-ago quarter when it had fewer shares outstanding.

Excluding one-time items, the company earned 22 cents per share. Analysts polled by FactSet expected 20 cents per share.

Revenue rose 10 percent to $54.3 million, beating analyst expectations for $53.8 million.

The company’s operating expenses also climbed, though, as TeleNav spent more on research and development and sales and marketing.

For the current quarter, TeleNav forecast net income of $7 million to $8 million, or 15 to 17 cents per share. Excluding items, it expects 17 to 19 cents per share. TeleNav predicted revenue will total $50 million to $52 million.

That is below the adjusted net income of 21 cents per share and $57.3 million in revenue analysts are expecting.

For the fiscal year that ends next June, TeleNav predicted net income will total $24 million to $28 million, or 50 to 60 cents per share, on $215 million to $225 million in revenue. The company forecast adjusted net income of 58 to 68 cents per share.

Analysts have been expecting much stronger results, estimating adjusted net income of 94 cents per share on $239.4 million in revenue.

For the full fiscal 2011 year, TeleNav earned $42.6 million, or 94 cents per share, compared with $25.6 million, or 83 cents per share, a year earlier. Excluding one-tie items, the company earned $1.03 per share.

Revenue rose 23 percent to $210.5 million.

TeleNav shares fell $5.98 to $12 in after-hours trading. The stock finished regular trading down 27 cents at $17.98.