Mitek Reports Third Quarter Fiscal 2013 Financial Results

  • Mobile Deposit® surpassed the 1,000 bank milestone; licensed financial institutions grow to 1,059
  • 15th and 16th patents recently issued by USPTO for Signature Verification and Mobile Balance Transfer™
  • Increased cash, cash equivalents and investments to $29.5 million

SAN DIEGO, July 25, 2013 (GLOBE NEWSWIRE) -- Mitek Systems, Inc. (Nasdaq:MITK) ( www.miteksystems.com), a leading mobile imaging software solutions provider, today announced its financial results for the third quarter of fiscal 2013, which ended June 30, 2013.

"With over 1,000 banks now licensing our technology, Mobile Deposit is a springboard for adoption of all of our mobile imaging solutions, resulting in this quarter's growth," said James B. DeBello, president and CEO of Mitek. "Our Mobile Imaging solutions are becoming pivotal for companies that want to advance their existing customer relationships and attract their next generation of consumers. Mitek continues to invest in our core science that turns complex Mobile Imaging technology into a pleasing consumer experience."

Total revenue for the third quarter of fiscal 2013 was $3.9 million compared to total revenue of $3.2 million in the third quarter of fiscal 2012, driven by revenue from Mobile Deposit, Mobile Photo Bill Pay, and Mobile Photo Quoting.

GAAP net loss for the third quarter of fiscal 2013 was $2.1 million, or $0.08 per share, compared to GAAP net loss of $2.0 million, or $0.08 per share, in the third quarter of fiscal 2012. Non-GAAP net loss for the third quarter of fiscal 2013 was $1.4 million, or $0.05 per share, compared to non-GAAP net loss of $1.2 million, or $0.05 per diluted share, in the third quarter of fiscal 2012.

Total operating expenses for the third quarter of fiscal 2013 were in line with company guidance at $5.9 million compared to $5.2 million for the third quarter of fiscal 2012. The increase in total operating expenses was primarily driven by higher investments in personnel to grow the business as well as litigation-related expense.

Highlights

  • Hired Scott Carter, an executive with over 20 years of experience in payments, financial services and related industries, to Mitek's newly-created Chief Marketing Officer position
  • 15th and 16th patents recently issued by USPTO for Signature Verification/Fraud Detection and Mobile Balance Transfer™; 22 are patents pending
  • BBVA Compass, a top 25 U.S. retail bank, launched Mobile Photo Bill Pay™
  • San Diego County Credit Union, a top 20 U.S. credit union, launched Mobile Balance Transfer™
  • Launched MiSnap™ SDK, an innovative, touch-free automatic image capture technology that enhances the user experience across all products

Conference Call

Mitek management will host a conference call and live webcast for analysts and investors today at 5:00 p.m. ET to discuss the Company's financial results. To participate, please dial in as follows approximately ten minutes in advance of the scheduled start time:
  • Parties in the U.S. and Canada can access the call by dialing 1-877-269-7756.
  • International parties can access the call by dialing 1-201-689-7817.

Mitek will offer a live webcast of the conference call, which will also include forward-looking information. The live webcast will be accessible on the "Investor Relations" section of the Company's website at http://www.miteksystems.com. An audio replay of the conference call will be available approximately two hours after the call and will be archived for 30 days. To hear the replay, parties in the United States and Canada should call 1-877-660-6853 and enter conference code 418120. International parties should call 1-201-612-7415 and enter conference code 418120.

About Mitek

Headquartered in San Diego, CA., Mitek (Nasdaq:MITK) is a mobile imaging software solutions provider that allows users to remotely deposit checks, pay their bills, get insurance quotes, and transfer credit card balances by snapping a picture with their camera-equipped smartphones and tablets instead of using the device keyboard. Mitek's technology increases convenience for the consumer by eliminating the need to go to the bank branch or automated teller machine, and dramatically reduces processing and customer acquisition costs while increasing customer retention. With a strong patent portfolio, Mitek is positioned as the leading innovator in mobile imaging software and currently provides its solutions to Fortune 500 financial services companies. For more information about Mitek, please visit http://www.miteksystems.com. MITK-F

Notice Regarding Forward-Looking Statements

Statements contained in this news release relating to the Company's or management's intentions, hopes, beliefs, expectations or predictions of the future, including, but not limited to, statements relating to the Company's long-term prospects, market opportunities beyond the financial services market, and the pursuit of partnerships in new market segments are forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties, including, but not limited to, risks related to the Company's ability to withstand negative conditions in the global economy, a lack of demand for or market acceptance of the Company's products, the Company's ability to continue to develop, produce and introduce innovative new products in a timely manner or the outcome of any pending or threatened litigation and the timing of the launch of Mobile Deposit by the Company's signed customers.

Additional risks and uncertainties faced by the Company are contained from time to time in the Company's filings with the U.S. Securities and Exchange Commission (SEC), including, but not limited to, the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2012 and its quarterly reports on Form 10-Q and current reports on Form 8-K, which you may obtain for free on the SEC's website at www.sec.gov. Collectively, these risks and uncertainties could cause the Company's actual results to differ materially from those projected in its forward-looking statements and you are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company disclaims any intention or obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

Note Regarding Use of Non-GAAP Financial Measures

This news release contains non-GAAP financial measures for non-GAAP net (loss) income and non-GAAP net (loss) income per share that exclude stock compensation expenses. These financial measures are not calculated in accordance with generally accepted accounting principles (GAAP) and are not based on any comprehensive set of accounting rules or principles. In evaluating the Company's performance, management uses certain non-GAAP financial measures to supplement financial statements prepared under GAAP. Management believes these non-GAAP financial measures provide a useful measure of the Company's operating results, a meaningful comparison with historical results and with the results of other companies, and insight into the Company's ongoing operating performance. Further, management and the Board of Directors utilize these non-GAAP financial measures to gain a better understanding of evaluating the Company's comparative operating performance from period-to-period and as a basis for planning and forecasting future periods. Management believes these non-GAAP financial measures, when read in conjunction with the Company's GAAP financials, are useful to investors because they provide a basis for meaningful period-to-period comparisons of the Company's ongoing operating results, including results of operations, against investor and analyst financial models, identifying trends in the Company's underlying business and performing related trend analyses, and they provide a better understanding of how management plans and measures the Company's underlying business.

© 2013 Mitek Systems, Inc. All rights reserved. The Mitek Systems name and logo and Mobile Deposit® are registered trademarks of Mitek Systems, Inc. Other product or service names mentioned herein are the trademarks of their respective owners.

     
MITEK SYSTEMS, INC.
BALANCE SHEETS
 
  June 30, September 30,
  2013 2012
  (Unaudited)  
ASSETS    
Current assets:    
Cash and cash equivalents  $ 22,945,632  $ 6,702,090
Short-term investments  6,515,582  5,819,537
Accounts receivable, net  572,382  1,097,311
Other current assets  608,147  485,165
Total current assets  30,641,743  14,104,103
     
Long-term investments  --  2,085,690
Property and equipment, net  1,560,156  491,079
Other non-current assets  42,049  42,049
Total assets  $ 32,243,948  $ 16,722,921
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
Accounts payable  $ 2,336,825  $ 711,950
Accrued payroll and related taxes  1,238,682  726,965
Deferred revenue, current portion  2,686,083  1,632,085
Other current liabilities  179,865  31,656
Total current liabilities  6,441,455  3,102,656
     
Other non-current liabilities  1,379,081  63,586
Total liabilities  7,820,536  3,166,242
     
Stockholders' equity:    
Preferred stock, $0.001 par value, 1,000,000 shares authorized, none issued and outstanding  --  --
Common stock, $0.001 par value, 60,000,000 and 40,000,000 shares authorized, respectively; 29,916,403 and 25,995,216 issued and outstanding, respectively  29,916  25,995
Additional paid-in capital  53,661,424  36,990,691
Accumulated other comprehensive loss  (3,561)  (616)
Accumulated deficit  (29,264,367)  (23,459,391)
Total stockholders' equity  24,423,412  13,556,679
Total liabilities and stockholders' equity  $ 32,243,948  $ 16,722,921
     
         
MITEK SYSTEMS, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
     
  Three Months Ended Nine Months Ended
  June 30, June 30,
  2013 2012 2013 2012
         
Revenue        
Software   $ 2,694,220  $ 2,463,916  $ 7,439,804  $ 5,861,391
Maintenance and professional services   1,187,807  697,813  2,976,150  2,011,560
Total revenue  3,882,027  3,161,729  10,415,954  7,872,951
         
Operating costs and expenses        
Cost of revenue-software  240,053  170,411  586,915  427,599
Cost of revenue-maintenance and professional services  229,392  188,809  639,617  543,627
Selling and marketing  1,461,897  1,078,603  4,143,346  2,641,569
Research and development  1,976,020  2,117,174  5,020,127  5,026,959
General and administrative  2,032,316  1,626,133  5,849,052  4,089,315
Total costs and expenses  5,939,678  5,181,130  16,239,057  12,729,069
         
Operating loss  (2,057,651)  (2,019,401)  (5,823,103)  (4,856,118)
         
Other income (expense), net        
Interest and other expense, net  (37,214)  (62,267)  (110,119)  (191,970)
Interest income  42,806  72,781  129,046  218,919
Total other income (expense), net  5,592  10,514  18,927  26,949
         
Loss before income taxes  (2,052,059)  (2,008,887)  (5,804,176)  (4,829,169)
         
Provision for income taxes  --  --  (800)  (800)
         
Net loss  $(2,052,059)  $(2,008,887)  $(5,804,976)  $(4,829,969)
         
Net loss per share - basic and diluted  $ (0.08)  $ (0.08)  $ (0.22)  $ (0.19)
         
Shares used in calculating net loss per share - basic and diluted  27,109,787  25,613,698  26,534,357  24,980,253
         
         
MITEK SYSTEMS, INC.
NON-GAAP NET LOSS RECONCILIATION
(Unaudited)
         
  For the three months ended For the nine months ended
  June 30, June 30,
  2013 2012 2013 2012
Loss before income taxes  $(2,052,059)  $(2,008,887)  $(5,804,176)  $(4,829,169)
         
Add back:        
Stock compensation expense  685,633  830,986  2,045,767  1,983,870
         
Non-GAAP loss before income taxes  (1,366,426)  (1,177,901)  (3,758,409)  (2,845,299)
Non-GAAP provision for income taxes  --   --   (800)  (800)
         
Non-GAAP net loss  $(1,366,426)  $(1,177,901)  $(3,759,209)  $(2,846,099)
         
Non-GAAP net loss per share - basic and diluted  $ (0.05)  $ (0.05)  $ (0.14)  $ (0.11)
         
Shares used in calculating non-GAAP net loss per share - basic and diluted  27,109,787  25,613,698  26,534,357  24,980,253
         

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CONTACT: Mitek Contacts:         Peter Salkowski         Managing Director, The Blueshirt Group         ir@miteksystems.com         858-309-1780

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