Any business that relies on one partner deal for the majority of its revenue is just one bad day away from rough waters. TeleNav Inc. (TNAV) is feeling that special kind of pain today as it watches the value of its shares plunge into the abyss.
According to Reuters, the navigation technology company warned investors that an upcoming contract negotiation with Sprint Nextel Corp. (S), it’s largest customer, could lead to a dramatic decline in revenue.
Following the news, stock prices are trading at about a 45% discount from its original IPO (initial public offering) back in mid May when shares sold for $9.80. The existing deal with Sprint fed 61% of TeleNav’s revenue in 2009, Reuters reports.
While the current contract runs through 2011, TeleNav’s exclusivity deal is set to expire at the end of this year.
Is TeleNav's one-trick pony ride coming to a halt?
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