Company News: Page (1) of 1 - 11/07/12

Mitek Reports Fourth Quarter and Fiscal 2012 Financial Results

November 07, 2012 --



  • Signed 564 financial institutions to date with 205 customers live as of Sept. 30, 2012


  • Mobile Deposit transaction usage increased more than 25% over the prior quarter



SAN DIEGO, Nov. 7, 2012 (GLOBE NEWSWIRE) -- Mitek Systems, Inc. (Nasdaq:MITK) (www.miteksystems.com), a leading mobile imaging software solutions provider, today announced financial results for the fourth quarter and full fiscal year 2012, which ended September 30, 2012.
















































 

Q4 FY 2012

Q4 FY 2011

FY 2012

FY 2011

Revenue

$1.2M

$3.0M

$9.1M

$10.3M

GAAP Net Loss

($3.0M)

($0.2M)

($7.8M)

($0.1M)

GAAP Net Loss Per Share

($0.12)

($0.01)

($0.31)

($0.01)

Non-GAAP Net Income (Loss)*

($2.4M)

$0.2M

($5.2M)

$1.6M

Non-GAAP Net Income (Loss) Per Share*

($0.09)

$0.01

($0.21)

$0.06


*Please see GAAP to Non-GAAP reconciliation at the end of this news release.



"During fiscal 2012, we made significant progress in laying the foundation for Mitek's future growth, and we're focused on investing in our business and executing on our strategy," said James B. DeBello, president and CEO of Mitek. "We navigated a number of significant transitions during the year, including the delayed launch of our second product, Mobile Photo Bill Pay. While we are clearly disappointed that we did not meet our revenue goals for the year, we are doing the work necessary to yield positive future results and position Mitek for long term growth. We further strengthened our senior management team with the addition of Mike Strange, CTO, and Mike Diamond, SVP of Sales, and appointed industry veterans to our board of directors and advisory board. We made significant investments in new product development, which resulted in a stronger Mobile Photo Bill Pay offering and culminated in our entering a strategic relationship with a top ten retail bank for that product. We believe continued investment in fiscal 2013 will enable Mitek to continue its market leadership and capitalize on the growing adoption of our patented mobile imaging solutions."


Total revenue for the fourth quarter of fiscal 2012 was $1.2 million compared to total revenue of $3.0 million in the fourth quarter of fiscal 2011. Total revenue for fiscal 2012 was $9.1 million compared to total revenue of $10.3 million in fiscal 2011. The year-over-year decrease in revenue was primarily driven by signing fewer large software licenses. The Company expects continued fluctuation in total revenue due to the timing of signing of software licenses.




Total operating expenses for the fourth quarter of 2012 were $4.2 million compared to $3.3 million for the fourth quarter of 2011. Total operating expenses for fiscal 2012 were $17.0 million compared to $10.0 million in fiscal 2011. The year-over-year increase in total operating expenses was primarily driven by R&D expenses associated with new product development, increased sales and marketing expenses, non-cash stock compensation expense and legal fees.



The Company ended fiscal 2012 with cash, cash equivalents and investments of $14.6 million, compared to $16.3 million at the end of fiscal 2011.



Highlights




  • Signed 392 financial institutions with 169 customers live during fiscal 2012, including the nation's top retail banks


  • Appointed Bruce Hansen to the Company's board of directors


  • Named Jane J. Thompson and Jim Hale to the Company's advisory board


  • Enhanced the depth and breadth of the Company's R&D, Finance, Sales and Professional Services organizations by hiring Michael Strange, Russell Clark, and Michael Diamond.


  • Mitek technology enabled over $10 billion in mobile deposits as of May 2012


  • Demonstrated mobile check cashing for underbanked consumers at Finovate 2012


  • Announced mobile imaging solutions for insurance with Progressive



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 United States and Canada can access the call by dialing 1-866-543-6403, using conference code 45181581 


  • International parties can access the call by dialing 1-617-213-8896, using conference code 45181581



Mitek will offer a live webcast of the conference call, which will also include forward-looking information. The webcast will be accessible at: http://www.media-server.com/m/p/hrunnh99 and will be archived on the "Investor Relations" section of the Company's website at www.miteksystems.com for a period of 30 days. 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 1-888-286-8010 and enter conference code 14521904. International parties should call 1-617-801-6888 and enter conference code 14521904.



About Mitek



Headquartered in San Diego, Calif., Mitek Systems, Inc. (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.



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, expansion of product offerings, 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, 2011 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 expense, non-cash interest expense on convertible debt and amortization of capitalized debt issuance costs.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.



© 2012 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.  MITK-F



































































































































































































MITEK SYSTEMS, INC

BALANCE SHEETS

(Unaudited)

 

 

 

 

September 30, 

September 30,

 

2012

2011

ASSETS

 

 

Current assets:

 

 

Cash and cash equivalents

 $ 6,702,090

 $ 5,655,716

Short-term investments

 5,819,537

 10,187,638

Accounts receivable, net

 1,097,311

 2,956,295

Other current assets

 485,165

 317,382

Total current assets

 14,104,103

 19,117,031

 

 

 

Long-term investments

 2,085,690

 417,230

Property and equipment, net

 491,079

 196,519

Other non-current assets

 42,049

 120,903

Total assets

 $ 16,722,921

 $ 19,851,683

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

Current liabilities:

 

 

Accounts payable

 $ 711,950

 $ 358,907

Accrued payroll and related taxes

 726,965

 496,009

Deferred revenue

 1,632,085

 873,230

Other current liabilities

 31,656

 45,185

Total current liabilities

 3,102,656

 1,773,331

 

 

 

Other non-current liabilities

 63,586

 23,061

Total liabilities

 3,166,242

 1,796,392

 

 

 

Stockholders' equity:

 

 

Preferred stock, $0.001 par value, 1,000,000 shares authorized, none issued and outstanding

 --

 --

Common stock, $0.001 par value, 40,000,000 shares authorized, 25,995,216 and 24,144,366 issued and outstanding, respectively

 25,995

 24,144

Additional paid-in capital

 36,990,691

 33,660,397

Accumulated other comprehensive income

 (616)

 (9,855)

Accumulated deficit

 (23,459,391)

 (15,619,395)

Total stockholders' equity

 13,556,679

 18,055,291

Total liabilities and stockholders' equity

 $ 16,722,921

 $ 19,851,683

 

 

 








































































































































































































































MITEK SYSTEMS, INC.

STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

 

Three Months Ended

Twelve Months Ended

 

September 30,

September 30,

 

2012

2011

2012

2011

 

 

 

 

 

Revenue

 

 

 

 

Software 

 $ 524,970

 $ 2,468,828

 $ 6,386,361

 $ 8,122,744

Maintenance and professional services 

 694,763

 571,311

 2,706,322

 2,143,231

Total revenue

 1,219,733

 3,040,139

 9,092,683

 10,265,975

 

 

 

 

 

Operating costs and expenses

 

 

 

 

Cost of revenue-software

 112,722

 147,040

 540,321

 662,080

Cost of revenue-maintenance and professional services

 179,973

 123,225

 723,599

 509,654

Selling and marketing

 808,484

 778,710

 3,450,054

 2,410,711

Research and development

 1,637,072

 1,025,422

 6,664,030

 2,996,109

General and administrative

 1,506,528

 1,189,014

 5,595,843

 3,431,023

Total operating costs and expenses

 4,244,779

 3,263,411

 16,973,847

 10,009,577

 

 

 

 

 

Operating (loss) income

 (3,025,046)

 (223,272)

 (7,881,164)

 256,398

Other income (expense), net

 

 

 

 

Interest and other expense, net

 (48,014)

 (40,450)

 (239,984)

 (427,547)

Interest income

 58,225

 44,342

 277,144

 48,584

Total other income (expense), net

 10,211

 3,892

 37,160

 (378,963)

 

 

 

 

 

Loss before income taxes

 (3,014,835)

 (219,380)

 (7,844,004)

 (122,565)

(Benefit from) provision for income taxes

 (4,808)

 --

 (4,008)

 2,492

Net loss

 $ (3,010,027)

 $ (219,380)

 $ (7,839,996)

 $ (125,057)

 

 

 

 

 

Net loss per share - basic and diluted

 $ (0.12)

 $ (0.01)

 $ (0.31)

 $ (0.01)

 

 

 

 

 

Shares used in calculating net loss per share - basic and diluted

 25,937,801

 24,053,769

 25,124,179

 21,506,508

 

 

 

 

 






















































































































































MITEK SYSTEMS, INC.

NON-GAAP NET (LOSS) INCOME RECONCILIATION

(Unaudited)

 

 

 

 

 

 

Three Months Ended

Twelve Months Ended

 

September 30,

September 30,

 

2012

2011

2012

2011

Loss before income taxes

 $ (3,014,835)

 $ (219,380)

 $ (7,844,004)

 $ (122,565)

 

 

 

 

 

Add back:

 

 

 

 

Stock compensation expense

 615,988

 379,891

 2,599,858

 1,271,238

Non-cash interest expense on convertible debt

 -- 

 -- 

 -- 

 384,124

Amortization of capitalized debt issuance costs

 -- 

 -- 

 -- 

 53,945

 

 

 

 

 

Non-GAAP (loss) income before income taxes

 (2,398,847)

 160,511

 (5,244,146)

 1,586,742

(Benefit from) provision for income taxes

 (4,808)

 -- 

 (4,008)

 2,492

 

 

 

 

 

Non-GAAP net (loss) income

 $ (2,394,039)

 $ 160,511

 $ (5,240,138)

 $ 1,584,250

 

 

 

 

 

Non-GAAP net (loss) income per share - diluted

 $ (0.09)

 $ 0.01

 $ (0.21)

 $ 0.06

 

 

 

 

 

Shares used in computing diluted Non-GAAP net (loss) income per share

 25,937,801

 28,045,515

 25,124,179

 25,416,011

 

 

 

 

 

CONTACT:
Julie Cunningham
Vice President, Investor Relations & Corporate Communications
Mitek Systems
858.309.1780
ir@miteksystems.com

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Related Keywords: EARNINGS, TELECOMMUNICATIONSComputers/Peripherals, Computer, Keyboard, Tablets, Digital Media Software, Communications, Web, Smart Phone, Blogs/videoblogs, Canada, USA, Inc., Financial, Business, Other,

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