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 6, 2014

 

 

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 6, 2014, Mitek Systems, Inc. (the “Company”) issued a press release regarding the Company’s financial results for the first quarter of fiscal 2014. 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 6, 2014.


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/ Russell C. Clark

  Russell C. Clark
  Chief Financial Officer

Date: February 6, 2014


EXHIBIT INDEX

 

Exhibit No.

  

Description

99.1    Press Release issued on February 6, 2014.
EX-99.1

Exhibit 99.1

 

LOGO

Mitek Reports First Quarter Fiscal 2014 Financial Results

 

    Revenue up 35% year-over-year for first quarter of fiscal 2014

 

    Mobile Deposit® licensed financial institutions grew to 1,780 banks signed, 1,362 banks live

 

    18th and 19th patents issued for mobile imaging technologies

SAN DIEGO – February 6, 2014 - Mitek Systems, Inc. (NASDAQ: MITK, www.miteksystems.com), the leading innovator of mobile imaging for financial transactions, today announced its financial results for the first quarter of fiscal 2014, which ended December 31, 2013.

“Strong user trends drove our solid first quarter results. A record 557 banks went live with Mobile Deposit in the quarter, illustrating this product is becoming mainstream” said James B. DeBello, president and CEO of Mitek. “We are excited about the launch of Mitek’s Mobile Photo Payments, our first solution designed for direct billers. As we expand into new areas, Mitek is continuing to develop its innovative mobile imaging platform that will serve the evolving needs of the mobile only consumer.”

Total revenue for the first quarter of fiscal 2014 was $4.5 million compared to total revenue of $3.3 million in the first quarter of fiscal 2013, driven by strong demand for Mitek’s Mobile Deposit product.

GAAP net loss for the first quarter of fiscal 2014 was $1.5 million, or $0.05 per share, compared to GAAP net loss of $1.4 million, or $0.05 per share, in the first quarter of fiscal 2013. Non-GAAP net loss for the first quarter of fiscal 2014 was $0.6 million, or $0.02 per share, compared to non-GAAP net loss of $0.7 million, or $0.03 per diluted share, in the first quarter of fiscal 2013.

Total operating expenses for the first quarter of fiscal 2014 were $5.9 million compared to $4.7 million for the first quarter of fiscal 2013. The increase in total operating expenses was primarily driven by investments in personnel to grow the business as well as litigation expense related to protecting the Company’s intellectual property.


Highlights

 

    18th and 19th patents issued by USPTO for Mobile Image Quality Assurance and additional Mobile Capture methods; 23 patents are pending

 

    Mobile Photo Bill Pay® licensed financial institutions grew to 20 banks signed with 13 banks live

 

    FirstBank first regional bank to offer Mobile Photo Bill Pay®

 

    Announced collaborations with Kony to deliver Mobile Photo Bill Pay® and Experian® to offer frictionless and safe Mobile Photo Account Opening™

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 1-877-269-7756.

 

    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 and on the “Investor Relations” section of the Company’s website at 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 13575433. International parties should call 1-201-612-7415 and enter conference code 13575433.

About Mitek

Headquartered in San Diego, CA, Mitek (NASDAQ: MITK) is the leading innovator of mobile imaging for financial transactions. Mitek’s patented mobile photo technology automatically captures images of personal and financial documents and then extracts relevant data. This enables consumers to use the Camera as a Keyboard™ to reduce friction for mobile check deposit, account opening, bill payment, insurance quoting, and many other use cases. This innovative technology is licensed by more than 1,000 organizations and used by tens of millions of consumers enabling increased customer acquisition, retention and operational efficiency. 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, 2013 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 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.

© 2014 Mitek Systems, Inc. All rights reserved. Mobile Photo Bill Pay®, Mobile Deposit®, Mobile Photo Account Opening™ and the Mitek Systems name and logo and 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

 

     December 31,     September 30,  
     2013     2013  
     (Unaudited)        

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 10,176,985      $ 23,294,456   

Short-term investments

     13,180,876        5,730,872   

Accounts receivable, net

     2,857,062        1,494,627   

Other current assets

     563,622        661,706   
  

 

 

   

 

 

 

Total current assets

     26,778,545        31,181,661   

Long-term investments

     4,052,426        —     

Property and equipment, net

     1,529,710        1,629,664   

Other non-current assets

     42,049        42,049   
  

 

 

   

 

 

 

Total assets

   $ 32,402,730      $ 32,853,374   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current liabilities:

    

Accounts payable

   $ 1,540,241      $ 1,875,909   

Accrued payroll and related taxes

     1,362,395        1,455,487   

Deferred revenue, current portion

     3,026,533        2,335,532   

Other current liabilities

     120,553        151,536   
  

 

 

   

 

 

 

Total current liabilities

     6,049,722        5,818,464   

Deferred revenue, non-current portion

     461,150        511,125   

Other non-current liabilities

     763,765        795,043   
  

 

 

   

 

 

 

Total liabilities

     7,274,637        7,124,632   
  

 

 

   

 

 

 

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, 30,431,192 and 30,361,442 issued and outstanding, respectively

     30,432        30,361   

Additional paid-in capital

     57,300,061        56,431,640   

Accumulated other comprehensive gain

     997        1,838   

Accumulated deficit

     (32,203,397     (30,735,097
  

 

 

   

 

 

 

Total stockholders’ equity

     25,128,093        25,728,742   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 32,402,730      $ 32,853,374   
  

 

 

   

 

 

 


MITEK SYSTEMS, INC.

STATEMENTS OF OPERATIONS

(Unaudited)

 

     For the three months ended  
     December 31,  
     2013     2012  

Revenue

    

Software

   $ 3,169,864      $ 2,570,706   

Maintenance and professional services

     1,292,660        738,958   
  

 

 

   

 

 

 

Total revenue

     4,462,524        3,309,664   
  

 

 

   

 

 

 

Operating costs and expenses

    

Cost of revenue-software

     321,099        192,606   

Cost of revenue-maintenance and professional services

     249,598        147,390   

Selling and marketing

     1,849,901        1,264,052   

Research and development

     1,525,574        1,402,753   

General and administrative

     1,997,200        1,668,929   
  

 

 

   

 

 

 

Total operating costs and expenses

     5,943,372        4,675,730   
  

 

 

   

 

 

 

Operating loss

     (1,480,848     (1,366,066

Other income (expense), net

    

Interest and other expense, net

     (1,700     (2,025

Interest income

     15,209        8,449   
  

 

 

   

 

 

 

Total other income (expense), net

     13,509        6,424   
  

 

 

   

 

 

 

Loss before income taxes

     (1,467,339     (1,359,642

Provision for income taxes

     (961     —     
  

 

 

   

 

 

 

Net loss

   $ (1,468,300   $ (1,359,642
  

 

 

   

 

 

 

Net loss per share - basic and diluted

   $ (0.05   $ (0.05
  

 

 

   

 

 

 

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

     30,402,397        26,024,288   
  

 

 

   

 

 

 


MITEK SYSTEMS, INC.

NON-GAAP NET LOSS RECONCILIATION

(Unaudited)

 

     For the three months ended  
     December 31,     December 31,  
     2013     2012  

Loss before income taxes

   $ (1,467,339   $ (1,359,642

Add back:

    

Stock compensation expense

     829,071        656,534   
  

 

 

   

 

 

 

Non-GAAP loss before income taxes

     (638,268     (703,108

Non-GAAP provision for income taxes

     (961     —     
  

 

 

   

 

 

 

Non-GAAP net loss

   $ (639,229   $ (703,108
  

 

 

   

 

 

 

Non-GAAP net loss per share - basic and diluted

   $ (0.02   $ (0.03
  

 

 

   

 

 

 

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

     30,402,397        26,024,288   
  

 

 

   

 

 

 

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Mitek Contact:

Peter Salkowski

Managing Director, The Blueshirt Group

ir@miteksystems.com

858-309-1780