Mitek Reports 37% Revenue Growth And Profitability For Fiscal 2016

SAN DIEGO, Nov. 03, 2016 (GLOBE NEWSWIRE) -- Mitek (NASDAQ:MITK) ( www.miteksystems.com), a global leader in mobile capture and identity verification software solutions, today announced its financial results for the fiscal 2016 fourth quarter and full year ended September 30, 2016.

Fiscal Fourth Quarter 2016 Financial Highlights
  • Fourth quarter revenue increased 23% year over year to a record $9.7 million
  • Fourth quarter GAAP net income of $1.0 million, or $0.03 per diluted share, compared to GAAP net income of $1.0 million, or $0.03 per diluted share, a year ago
  • Fourth quarter non-GAAP net income of $2.5 million, or $0.07 per diluted share, compared to non-GAAP net income of $2.8 million, or $0.09 per diluted share, a year ago

Fiscal 2016 Full Year Financial Highlights
  • Full year revenue increased 37% year over year to a record $34.7 million
  • Full year GAAP net income of $2.0 million, or $0.06 per diluted share, compared to net income of $2.5 million, or $0.08 per diluted share, a year ago
  • Full year non-GAAP net income of $8.7 million, or $0.26 per diluted share, compared to non-GAAP net income of $8.1 million, or $0.26 per diluted share, a year ago.
  • Full year cash flow from operations of approximately $7.9 million
  • Total cash and investments increased to $35.8 million at year end, compared to $26.7 million at the end of fiscal 2015

Commenting on the results, James DeBello, Chairman and CEO of Mitek, said:

"Our record revenue results for fiscal 2016 were driven by growth from both our new mobile ID solutions and our industry leading Mobile Deposit. We made significant progress during the year establishing Mitek as a leading provider of mobile ID verification solutions to banks and other enterprises in the rapidly growing mobile self-service market. With our market momentum in both mobile ID and mobile deposit we are well positioned for continued growth in fiscal 2017 and beyond."

Fiscal 2016 Fourth Quarter and Full-Year Financial Results

Total revenue for the fourth quarter of fiscal 2016 was $9.7 million, compared to total revenue of $7.9 million in the fourth quarter of fiscal 2015. Total revenue for fiscal 2016 was $34.7 million, compared to $25.4 million in fiscal 2015.

GAAP net income for the fourth quarter of fiscal 2016 was $1.0 million, or $0.03 per diluted share, compared to GAAP net income of $1.0, or $0.03 per diluted share, in the fourth quarter of fiscal 2015. GAAP net income for fiscal 2016 was $2.0 million, or $0.06 per diluted share, compared to a GAAP net income of $2.5 million, or $0.08 per diluted share, in fiscal 2015.

Non-GAAP net income for the fourth quarter of fiscal 2016 was $2.5 million, or $0.07 per diluted share, compared to non-GAAP net income of $2.8 million, or $0.09 per diluted share, in the fourth quarter of fiscal 2015. Non-GAAP net income for fiscal 2016 was $8.7 million, or $0.26 per diluted share, compared to non-GAAP net income of $8.1 million, or $0.26 per diluted share, in fiscal 2015.

The Company ended fiscal 2016 with cash, cash equivalents and investments of $35.8 million, compared to $26.7 million at the end of fiscal 2015.

Conference Call Information

Mitek management will host a conference call and live webcast for analysts and investors today at 8:00 a.m. Pacific Time (11:00 a.m. Eastern Time) to discuss the Company's financial results.

To listen to the live conference call, parties in the United States and Canada should dial 877-874-1588, access code: 3315288. International parties should call 719-325-4800 using access code: 3315288. Please dial in approximately 15 minutes prior to the start of the call. 

A live and archived webcast of the conference call will be accessible on the "Investor Relations" section of the Company's website at www.miteksystems.com. To access the live webcast, please log in 15 minutes prior to the start of the call to download and install any necessary audio software.

About Mitek

Mitek (MITK) is a global leader in mobile capture and identity verification software solutions. Mitek's ID document verification allows an enterprise to verify a user's identity during a mobile transaction, enabling financial institutions, payments companies and other businesses operating in highly regulated markets to transact business safely while increasing revenue from the mobile channel. Mitek also reduces the friction in the mobile user experience with advanced data prefill. These innovative mobile solutions are embedded into the apps of more than 5,400 organizations and used by tens of millions of consumers daily for mobile check deposit, new account opening, insurance quoting and more. Learn more at 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 and market opportunities 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 implementation and launch of the Company's products 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, 2015 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 income and non-GAAP net income per share that exclude stock compensation expenses, intellectual property litigation costs and acquisition-related costs and 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 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.

Follow Mitek on LinkedIn:  http://www.linkedin.com/company/mitek-systems-inc.Follow Mitek on Twitter:  @miteksystemsConnect with Mitek on Facebook:  http://www.facebook.com/MitekSystemsSee Mitek on YouTube:  http://www.youtube.com/miteksystemsRead Mitek's latest blog post:  http://www.miteksystems.com/blog

   
MITEK SYSTEMS, INC.  
NON-GAAP NET INCOME RECONCILIATION  
(Unaudited)  
(amounts in thousands except share data)  
                 
  Three Months Ended   Twelve Months Ended  
  September 30,   September 30,  
    2016       2015       2016       2015    
Income before income taxes $   864     $   987     $   1,958     $   1,983    
                 
Add back:                
Acquisition-related costs and expenses     536         552         2,176         1,368    
Litigation costs     47         410         460         1,449    
Stock compensation expense     971         873         4,079         3,368    
                 
Non-GAAP income before income taxes     2,418         2,822         8,673         8,168    
Non-GAAP benefit (provision) for income taxes (1)     96         (32 )       1         (92 )  
                 
Non-GAAP net income  $   2,514     $   2,790     $   8,674     $   8,076    
                 
Non-GAAP net income per share - basic $   0.08     $   0.09     $   0.27     $   0.26    
                 
Non-GAAP net income per share - diluted $   0.07     $   0.09     $   0.26     $   0.26    
                 
Shares used in calculating non-GAAP net income per share - basic     32,086,223         30,969,157         31,586,535         30,790,258    
                 
Shares used in calculating non-GAAP net income per share - diluted       34,859,861         31,664,178         33,818,501         31,480,241    
                 
                             
(1) Non-GAAP provision for income taxes for the year ended September 30, 2015 excludes a GAAP tax benefit of $634,930 related to the acquisition of IDchecker.  
                 
                 

 
MITEK SYSTEMS, INC.  
CONSOLIDATED STATEMENTS OF OPERATIONS  
(Unaudited)  
(amounts in thousands except share data)  
                 
  Three Months Ended     Twelve Months Ended   
  September 30,     September 30,   
    2016       2015       2016       2015    
Revenue                
Software  $   6,540     $   5,455     $   22,586     $   17,870    
SaaS, maintenance and consulting     3,130         2,411         12,115         7,497    
Total revenue     9,670         7,866         34,701         25,367    
Operating costs and expenses                
Cost of revenue - software     274         287         953         992    
Cost of revenue -  SaaS, maintenance and consulting     666         538         2,442         1,479    
Selling and marketing     2,981         1,945         10,937         6,458    
Research and development     2,334         1,681         7,794         5,577    
General and administrative     2,038         1,901         8,575         7,601    
Acquisition-related costs and expenses     536         552         2,176         1,368    
Total operating costs and expenses     8,829         6,904         32,877         23,475    
Operating income     841         962         1,824         1,892    
Other income (expense), net     23         25         134         91    
Income before income taxes     864         987         1,958         1,983    
Income tax benefit (provision)      96         (32 )       1         543    
Net income $   960     $   955     $   1,959     $   2,526    
Net income per share - basic $   0.03     $   0.03     $   0.06     $   0.08    
Net income per share - diluted $   0.03     $   0.03     $   0.06     $   0.08    
Shares used in calculating net income per share - basic     32,086,223         30,969,157         31,586,535         30,790,258    
Shares used in calculating net income per share - diluted       34,859,861         31,664,178         33,818,501         31,480,241    
                 

 
   
MITEK SYSTEMS, INC.  
CONSOLIDATED BALANCE SHEETS  
(Unaudited)  
(amounts in thousands except share data)  
 
  September 30,   September 30,  
    2016       2015    
         
ASSETS        
Current assets:        
Cash and cash equivalents $   9,010     $   2,753    
Short-term investments     24,863         23,921    
Accounts receivable, net     4,949         3,937    
Other current assets     1,485         798    
Total current assets     40,307         31,409    
         
Long-term investments     1,952         -    
Property and equipment, net     440         975    
Goodwill and intangible assets     5,646         6,270    
Other non-current assets     40         92    
Total assets $   48,385     $   38,746    
         
LIABILITIES AND STOCKHOLDERS' EQUITY        
Current liabilities:        
Accounts payable $   1,317     $   1,538    
Accrued payroll and related taxes     3,263         2,061    
Deferred revenue, current portion     3,391         3,516    
Other current liabilities     355         289    
Total current liabilities     8,326         7,404    
         
Deferred revenue, non-current portion     259         222    
Other non-current liabilities     314         687    
Total liabilities     8,899         8,313    
         
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 shares authorized,        
  32,781,706 and 31,721,114 shares issued and outstanding, respectively       33         32    
Additional paid-in capital     71,036         63,905    
Accumulated other comprehensive loss     (42 )       (3 )  
Accumulated deficit     (31,541 )       (33,501 )  
Total stockholders' equity     39,486         30,433    
Total liabilities and stockholders' equity $   48,385     $   38,746    
         
Investor Contact:Todd Kehrli or Jim ByersMKR Group, Inc.mitk@mkr-group.com

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