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Mitek Reports Third Quarter Fiscal 2015 Financial Results

20:00 EDT 22 Jul 2015 | Globe Newswire

  • Record quarterly revenue of $6.4 million, up 38% year-over-year
  • Ten consecutive quarters of year-over-year revenue growth
  • GAAP profit of $0.9 million, recording fourth consecutive profitable quarter
  • Mobile Deposit® surpasses a new milestone, licensed by over 4,000 financial institutions
  • Acquired IDchecker, a global provider of identity document verification and facial recognition solutions

SAN DIEGO, July 23, 2015 (GLOBE NEWSWIRE) -- Mitek Systems, Inc. (NASDAQ:MITK) (www.miteksystems.com), the leading innovator of mobile imaging for financial transactions and identification, today announced its financial results for the third quarter of fiscal 2015, which ended June 30, 2015.

"Our quarterly revenue grew 38% year-over-year to over $6 million, demonstrating our success at providing a superior mobile experience," said James B. DeBello, president and CEO of Mitek. "Our acquisition of IDchecker solidifies Mitek's position as a global leader in mobile capture and identity solutions, increasing our recurring revenues with a cloud-based model."

Total revenue for the third quarter of fiscal 2015 was $6.4 million compared to total revenue of $4.7 million in the third quarter of fiscal 2014, driven by Mitek's Mobile Deposit® and identity solutions.

GAAP net income for the third quarter of fiscal 2015 was $917,000, or $0.03 per diluted share, compared to GAAP net loss of $(1.6) million, or $(0.05) per share, in the third quarter of fiscal 2014. Non-GAAP net income for the third quarter of fiscal 2015 was $2.2 million, or $0.07 per diluted share, compared to non-GAAP net income of $139,000, or breakeven per diluted share, in the third quarter of fiscal 2014.

Fiscal 2015 Outlook

Fiscal 2015 revenue is expected to be between $23.5 million to $24.5 million, an increase of $1 million to both ends of the prior guidance range.

Conference Call

Mitek management will host a conference call and live webcast for analysts and investors today at 2 p.m. Pacific Time (5 p.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 888-299-7209, access code 3912617. International parties should call 719-325-2308, access code 3912617. Please dial in approximately 10 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 10 minutes prior to the start of the call to download and install any necessary audio software.

About Mitek  

Headquartered in San Diego, CA, Mitek (NASDAQ:MITK) is the leading innovator of mobile capture and identity solutions for customer acquisition. Mitek's mobile photo technology enables consumers to use the Camera as a Keyboard™ to reduce friction for mobile check deposit, account opening, insurance quoting, payments, and ID document authentication. This innovative mobile technology is licensed by more than 4,100 organizations and used by tens of millions of consumers. In June of 2015, Mitek acquired IDchecker, a global provider of cloud based identity document verification and facial recognition solutions. The acquisition broadens Mitek's global presence, expands document coverage to more than 3,500 document types and adds international customers in payments, financial services and information services. 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 beyond the financial services market 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, 2014 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 (loss) and non-GAAP net income (loss) per share that exclude stock compensation expenses, litigation costs, acquisition-related costs and expenses, and certain income tax provisions or benefits. 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.

© 2015 Mitek Systems, Inc. All rights reserved. Mobile Photo Bill Pay®, Mobile Deposit®, Mobile Photo Account Opening™ and the Mitek Systems name and logo are registered trademarks of Mitek Systems, Inc. Other product or service names mentioned herein are the trademarks of their respective owners.

 
MITEK SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
     
  June 30, September 30,
  2015 2014
  (Unaudited)  
ASSETS    
Current assets:    
Cash and cash equivalents  $ 2,730,826  $ 7,766,590
Short-term investments  21,222,669  16,269,170
Accounts receivable, net  3,807,947  2,955,350
Other current assets  832,341  704,409
Total current assets  28,593,783  27,695,519
     
Long-term investments  763,005  2,072,018
Property and equipment, net  1,065,633  1,293,270
Intangible assets  6,437,395  --
Other non-current assets  92,049  42,049
Total assets  $ 36,951,865  $ 31,102,856
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
Accounts payable  $ 2,341,468  $ 1,792,267
Accrued payroll and related taxes  1,460,842  1,434,913
Deferred revenue, current portion  3,674,946  2,826,670
Other current liabilities  295,375  157,649
Total current liabilities  7,772,631  6,211,499
     
Deferred revenue, non-current portion  255,750  311,225
Other non-current liabilities  751,955  638,099
Total liabilities  8,780,336  7,160,823
     
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, 30,855,511 and 30,521,080 issued and outstanding, respectively  30,856  30,521
Additional paid-in capital  62,603,445  59,946,288
Accumulated other comprehensive gain (loss)  (6,597)  (7,810)
Accumulated deficit  (34,456,175)  (36,026,966)
Total stockholders' equity  28,171,529  23,942,033
Total liabilities and stockholders' equity  $ 36,951,865  $ 31,102,856
 
MITEK SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
         
  Three Months Ended Nine Months Ended
  June 30, June 30,
  2015 2014 2015 2014
Revenue        
Software   $ 4,675,096  $ 3,176,686  $ 12,414,627  $ 9,468,663
Services  1,764,899  1,483,038  5,087,017  4,137,723
Total revenue  6,439,995  4,659,724  17,501,644  13,606,386
Operating costs and expenses        
Cost of revenue-software  265,511  293,877  704,667  787,544
Cost of revenue-services  325,819  313,709  941,718  839,953
Selling and marketing  1,645,770  1,810,084  4,512,479  5,607,559
Research and development  1,353,285  1,589,521  3,896,255  4,745,723
General and administrative  1,804,025  2,302,973  5,700,453  6,968,419
Acquisition-related costs and expenses  736,172  --  816,291  --
Total operating costs and expenses  6,130,582  6,310,164  16,571,863  18,949,198
Operating income (loss)  309,413  (1,650,440)  929,781  (5,342,812)
Other income (expense), net        
Interest and other expense  (342)  (1,545)  (2,511)  (4,821)
Interest and other income  30,101  19,479  68,629  55,940
Total other income (expense), net  29,759  17,934  66,118  51,119
Income (loss) before income taxes  339,172  (1,632,506)  995,899  (5,291,693)
Income tax benefit (provision)   577,789  (95)  574,892  (2,226)
Net income (loss)  $ 916,961  $ (1,632,601)  $ 1,570,791  $ (5,293,919)
Net income (loss) per share - basic  $ 0.03  $ (0.05)  $ 0.05  $ (0.17)
Net income (loss) per share - diluted  $ 0.03  $ (0.05)  $ 0.05  $ (0.17)
Shares used in calculating net income (loss) per share - basic  30,764,694  30,481,168  30,704,250  30,451,058
Shares used in calculating net income (loss) per share - diluted  31,645,696  30,481,168  31,389,569  30,451,058
 
MITEK SYSTEMS, INC.
NON-GAAP NET INCOME (LOSS) RECONCILIATION
(Unaudited)
         
  Three Months Ended Nine Months Ended
  June 30, June 30,
  2015 2014 2015 2014
Income (loss) before income taxes  $ 339,172  $ (1,632,506)  $ 995,899  $ (5,291,693)
         
Add back:        
Acquisition-related expenses  80,160 --  80,160  --
Acquisition-related costs  656,012  --  736,131  --
Litigation costs  339,098  848,926  1,038,840  2,587,483
Stock compensation expense  809,588  922,848  2,494,769  2,667,969
         
Non-GAAP income (loss) before income taxes  2,224,030  139,268  5,345,799  (36,241)
Non-GAAP provision for income taxes (1)  (57,141)  (95)  (60,038)  (2,226)
         
Non-GAAP net income (loss)  $ 2,166,889  $ 139,173  $ 5,285,761  $ (38,467)
         
Non-GAAP net income (loss) per share - basic  $ 0.07  $ 0.00  $ 0.17  $ (0.00)
         
Non-GAAP net income (loss) per share - diluted  $ 0.07  $ 0.00  $ 0.17  $ (0.00)
         
Shares used in calculating non-GAAP net income (loss) per share - basic  30,764,694  30,481,168  30,704,250  30,451,058
         
Shares used in calculating non-GAAP net income (loss) per share - diluted  31,645,696  31,057,905  31,389,569  30,451,058
         
(1) Non-GAAP provision for income taxes for the three and nine month periods ended June 30, 2015 excludes a GAAP tax benefit of $634,930 related to the acquisition of IDchecker.

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

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