Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): February 7, 2012

 

 

Mitek Systems, Inc.

(Exact Name of Registrant as Specified in Charter)

 

 

 

Delaware   001-35231   87-0418827

(State or Other Jurisdiction of

Incorporation)

 

Commission

File Number

 

(I.R.S. Employer

Identification Number)

8911 Balboa Ave., Suite B, San Diego, California 92123

(Address of Principal Executive Offices) (Zip Code)

Registrant’s telephone number, including area code: (858) 309-1700

N/A

(Former Name, or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 2.02. Results of Operations and Financial Condition.

On February 7, 2012, Mitek Systems, Inc. (the “Company”) issued a press release regarding the Company’s financial results for the first quarter of fiscal 2012. The full text of the Company’s press release is attached hereto as Exhibit 99.1.

In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits

 

99.1    Press Release issued on February 7, 2012.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Mitek Systems, Inc.
By:  

/s/ James B. DeBello

  James B. DeBello
  President and Chief Executive Officer

Date: February 7, 2012


EXHIBIT INDEX

 

Exhibit No.

  

Description

99.1    Press Release issued on February 7, 2012.
Press Release

Exhibit 99.1

 

LOGO

MITEK SYSTEMS REPORTS FIRST QUARTER FISCALYEAR 2012 RESULTS

Highlights

 

   

First quarter 2012 revenue increased 151% over the first quarter of 2011

 

   

First quarter 2012 gross margin was 91%

 

   

Signed 250 financial institutions cumulative through December 31, 2011

 

   

56 customers launched Mitek Mobile Deposit® cumulative through December 31, 2011

 

   

Announced Mobile Deposit 3.0 during the first quarter of 2012

SAN DIEGO – February 7, 2012 — Mitek Systems, Inc. (NASDAQ: MITK; www.miteksystems.com), a leading mobile imaging software solutions provider, today announced financial results for the first quarter of fiscal 2012, which ended December 31, 2011.

Total revenue for the first quarter of 2012 was $3.5 million, an increase of 151% over total revenue of $1.4 million for the first quarter of 2011. The growth in total revenue was primarily driven by increased sales of licenses for the Company’s patented imaging software products. Total operating expenses for the first quarter of 2012 were $3.5 million compared to $1.8 million for the first quarter of 2011.

GAAP net income for the first quarter of 2012 was $26,000 compared to a net loss of $801,000, or $0.04 per diluted share, in the first quarter of 2011. The net loss in the first quarter of 2011 included $438,000 of non-cash interest and amortization expense related to convertible debt which was converted into common stock and $234,000 of stock-based compensation expense.

Non-GAAP net income, which excludes charges related to convertible debt and stock-based compensation, was $453,000, or $0.02 per diluted share, for the first quarter of 2012 compared to a net loss of $129,000, or $0.01 per diluted share, in the first quarter of 2011. Please see page 7 of this news release for a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures (unaudited).


Mitek Systems Reports First Quarter Fiscal 2012 Financial Results

 

“We’re pleased with our solid financial performance during the first quarter of fiscal 2012 as our tier-one customer base continues to grow and currently includes eight of the top ten banks,” said President and CEO James B. DeBello. “We’re also excited that commercial Mobile Deposit launches are well underway and 56 customers have now launched Mobile Deposit. Importantly, we’re beginning to see Fortune 500 companies like Progressive announce their Image Capture technology, which is powered by Mitek. We believe this market momentum, along with the new products we expect to launch this year, will position Mitek for long-term success.”

The Company ended the first quarter of fiscal 2012 with cash, cash equivalents and investments of $17.5 million, compared to $16.3 million at the end of fiscal 2011.

Conference Call

Mitek management will host a conference call and live webcast for analysts and investors today at 5:00 p.m. EST to discuss the Company’s first quarter 2012 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 1-866-202-4367, using conference code 14027232.

 

   

International parties can access the call by dialing 1-617-213-8845, using conference code 14027232.

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/99inv99m 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 78354785. International parties should call 1-617-801-6888 and enter conference code 78354785.

 

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Mitek Systems Reports First Quarter Fiscal 2012 Financial Results

 

About Mitek Systems

Headquartered in San Diego, CA., Mitek Systems (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 smartphone or tablet cameras instead of using the device keyboard. Mitek’s technology increases convenience for the consumer by eliminating the need to have 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 Systems, please visit 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 and market opportunities beyond financial services are forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties, including, but not limited to, risks that the Company will not be able to withstand negative conditions in the global economy, a lack of demand for or market acceptance of the Company’s products or the Company’s ability to continue to develop, produce and introduce innovative new products in a timely manner. 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 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 income and earnings per share. In evaluating the Company’s performance, management uses certain non-GAAP financial measures to supplement financial statements prepared under generally accepted accounting principles (GAAP). Management believes these non-GAAP financial measures help indicate the Company’s baseline performance before gains, losses or charges that are considered by management to be outside ongoing operating results. Accordingly, management uses these non-GAAP financial measures to gain a better understanding of the Company’s comparative operating performance

 

Page 3


Mitek Systems Reports First Quarter Fiscal 2012 Financial Results

 

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 perform related trend analysis, and a better understanding how management plans and measures the Company’s underlying business.

These non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. In addition, these non-GAAP financial measures may be different from non-GAAP financial measures used by other companies.

© 2012 Mitek Systems. 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.

# # #

Contact:

Julie Cunningham

858.309.1780

ir@miteksystems.com

 

Page 4


Mitek Systems Reports First Quarter Fiscal 2012 Financial Results

 

MITEK SYSTEMS, INC

CONDENSED BALANCE SHEETS

 

     December 31,
2011
(Unaudited)
    September 30,
2011
 

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 6,711,466      $ 5,655,716   

Short-term investments

     10,829,067        10,187,638   

Accounts receivable, net

     3,065,453        2,956,295   

Other current assets

     295,719        317,382   
  

 

 

   

 

 

 

Total current assets

     20,901,705        19,117,031   

Long-term investments

     —          417,230   

Property and equipment, net

     309,503        196,519   

Other non-current assets

     88,698        120,903   
  

 

 

   

 

 

 

Total assets

   $ 21,299,906      $ 19,851,683   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current liabilities:

    

Accounts payable

   $ 542,222      $ 358,907   

Accrued payroll and related taxes

     644,878        496,009   

Deferred revenue

     1,232,694        873,230   

Other current liabilities

     35,990        45,185   
  

 

 

   

 

 

 

Total current liabilities

     2,455,784        1,773,331   

Other non-current liabilities

     94,798        23,061   
  

 

 

   

 

 

 

Total liabilities

     2,550,582        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, 24,542,255 and 24,144,366 issued and outstanding, respectively

     24,542        24,144   

Additional paid-in capital

     34,322,826        33,660,397   

Accumulated other comprehensive income

     (4,924     (9,855

Accumulated deficit

     (15,593,120     (15,619,395
  

 

 

   

 

 

 

Total stockholders’ equity

     18,749,324        18,055,291   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 21,299,906      $ 19,851,683   
  

 

 

   

 

 

 

 

Page 5


Mitek Systems Reports First Quarter Fiscal 2012 Financial Results

 

MITEK SYSTEMS, INC.

CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

 

    

For the three months ended

December 31,

 
     2011     2010  

Revenue

    

Software

   $ 2,892,026      $ 940,688   

Maintenance and professional services

     627,458        462,874   
  

 

 

   

 

 

 

Total revenue

     3,519,484        1,403,562   
  

 

 

   

 

 

 

Operating costs and expenses

    

Cost of revenue-software

     147,660        92,390   

Cost of revenue-maintenance and professional services

     154,609        115,309   

Selling and marketing

     850,928        399,312   

Research and development

     1,179,106        589,337   

General and administrative

     1,163,228        623,244   
  

 

 

   

 

 

 

Total operating costs and expenses

     3,495,531        1,819,592   
  

 

 

   

 

 

 

Operating income (loss)

     23,953        (416,030

Other income (expense), net

    

Interest and other expense, net

     (67,065     (384,247

Interest income

     74,024        1,242   
  

 

 

   

 

 

 

Total other income (expense), net

     6,959        (383,005
  

 

 

   

 

 

 

Income (loss) before income taxes

     30,912        (799,035

Provision for income taxes

     (4,637     (1,692
  

 

 

   

 

 

 

Net income (loss)

   $ 26,275      $ (800,727
  

 

 

   

 

 

 

Net income (loss) per share - basic

   $ 0.00      $ (0.04
  

 

 

   

 

 

 

Net income (loss) per share - diluted

   $ 0.00      $ (0.04
  

 

 

   

 

 

 

Shares used in calculating basic net income (loss) per share

     24,390,215        18,845,990   
  

 

 

   

 

 

 

Shares used in calculating diluted net income (loss) per share

     27,817,545        18,845,990   
  

 

 

   

 

 

 

 

Page 6


Mitek Systems Reports First Quarter Fiscal 2012 Financial Results

 

MITEK SYSTEMS, INC.

NON-GAAP NET INCOME RECONCILIATION

(unaudited)

 

     For the three months ended  
     December 31,
2011
    December 31,
2010
 

Income (loss) before income taxes

   $ 30,912      $ (799,035

Add back:

    

Stock compensation expense

     501,697        234,043   

Non-cash interest expense on convertible debt

     —          384,124   

Amortization of capitalized debt issuance costs

     —          53,945   
  

 

 

   

 

 

 

Non-GAAP income (loss) before income taxes

     532,609        (126,923

Non-GAAP provision for income taxes

     (79,891     (1,692
  

 

 

   

 

 

 

Non-GAAP net income (loss)

   $ 452,718      $ (128,615
  

 

 

   

 

 

 

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

   $ 0.02      $ (0.01
  

 

 

   

 

 

 

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

     27,817,545        18,845,990   
  

 

 

   

 

 

 

 

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