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): July 24, 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 July 24, 2014, Mitek Systems, Inc. (the “Company”) issued a press release regarding the Company’s financial results for the third 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 July 24, 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: July 24, 2014


EXHIBIT INDEX

 

Exhibit No.

  

Description

99.1

   Press Release issued on July 24, 2014.
EX-99.1

Exhibit 99.1

 

LOGO

Mitek Reports Third Quarter Fiscal 2014 Financial Results

 

    Record quarterly revenue driven by Mobile Deposit®; achieved quarterly Non-GAAP profitability

 

    Mobile Deposit® surpassed 2,500 banks, growing to 2,571 financial institutions now signed

 

    20th patent issued for mobile imaging technology

SAN DIEGO – July 24, 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 third quarter of fiscal 2014, which ended June 30, 2014.

“The continued popularity of our flagship Mobile Deposit solution drove revenue to a record $4.7 million, marking Mitek’s fourth consecutive quarter of revenue over $4 million. Alongside this progress, we have several exciting initiatives in motion, including pilots with major institutions for our Account Opening and Bill Pay solutions,” said James B. DeBello, president and CEO of Mitek. “These strong fundamentals, backed by mobile banking trends and the proliferation of smart devices, position Mitek well for future growth.”

Total revenue for the third quarter of fiscal 2014 was $4.7 million compared to total revenue of $3.9 million in the third quarter of fiscal 2013, driven by continued strong demand for Mitek’s Mobile Deposit product.

GAAP net income (loss) for the third quarter of fiscal 2014 was $(1.6) million, or $(0.05) per share, compared to GAAP net income (loss) of $(2.1) million, or $(0.08) per share, in the third quarter of fiscal 2013. Non-GAAP net income (loss) for the third quarter of fiscal 2014 was $0.1 million, or $0.00 per share, compared to non-GAAP net income (loss) of $(0.7) million, or $(0.02) per diluted share, in the third quarter of fiscal 2013.

Total operating costs and expenses for the third quarter of fiscal 2014 were $6.3 million compared to $5.9 million for the third quarter of fiscal 2013. The increase in total operating costs and expenses was primarily driven by continued investment in the business, as well as non-cash stock compensation expense and litigation expense related to the protection of the Company’s intellectual property.


Conference Call

Mitek management will host a conference call and live webcast for analysts and investors today at 2:00 p.m. PT (5:00 p.m. ET) to discuss the Company’s financial results.

To listen to the live conference call, parties in the United States and Canada should dial 888-296-4217, access code 1635008. International parties should call 719-325-2132 using access code 1635008. 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

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 2,500 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 income (loss) per share that exclude stock compensation expenses and intellectual property litigation 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

 

     June 30,
2014
    September 30,
2013
 
     (Unaudited)        

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 9,141,126      $ 23,294,456   

Short-term investments

     15,591,569        5,730,872   

Accounts receivable, net

     2,519,605        1,494,627   

Other current assets

     805,086        661,706   
  

 

 

   

 

 

 

Total current assets

     28,057,386        31,181,661   

Long-term investments

     1,623,696        —     

Property and equipment, net

     1,406,543        1,629,664   

Other non-current assets

     42,049        42,049   
  

 

 

   

 

 

 

Total assets

   $ 31,129,674      $ 32,853,374   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current liabilities:

    

Accounts payable

   $ 1,594,378      $ 1,875,909   

Accrued payroll and related taxes

     1,586,725        1,455,487   

Deferred revenue, current portion

     3,602,456        2,335,532   

Other current liabilities

     145,380        151,536   
  

 

 

   

 

 

 

Total current liabilities

     6,928,939        5,818,464   

Deferred revenue, non-current portion

     361,200        511,125   

Other non-current liabilities

     677,011        795,043   
  

 

 

   

 

 

 

Total liabilities

     7,967,150        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, 30,481,168 and 30,361,442 issued and outstanding, respectively

     30,481        30,361   

Additional paid-in capital

     59,158,324        56,431,640   

Accumulated other comprehensive loss

     2,735        1,838   

Accumulated deficit

     (36,029,016     (30,735,097
  

 

 

   

 

 

 

Total stockholders’ equity

     23,162,524        25,728,742   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 31,129,674      $ 32,853,374   
  

 

 

   

 

 

 


MITEK SYSTEMS, INC.

STATEMENTS OF OPERATIONS

(Unaudited)

 

    

Three Months Ended

June 30,

   

Nine Months Ended

June 30,

 
   2014     2013     2014     2013  

Revenue

        

Software

   $ 3,176,686      $ 2,694,220      $ 9,468,663      $ 7,439,804   

Maintenance and professional services

     1,483,038        1,187,807        4,137,723        2,976,150   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     4,659,724        3,882,027        13,606,386        10,415,954   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating costs and expenses

        

Cost of revenue-software

     293,877        240,053        787,544        586,915   

Cost of revenue-maintenance and professional services

     313,709        229,392        839,953        639,617   

Selling and marketing

     1,810,084        1,461,897        5,607,559        4,143,346   

Research and development

     1,589,521        1,976,020        4,745,723        5,020,127   

General and administrative

     2,302,973        2,032,316        6,968,419        5,849,052   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total costs and expenses

     6,310,164        5,939,678        18,949,198        16,239,057   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating loss

     (1,650,440     (2,057,651     (5,342,812     (5,823,103
  

 

 

   

 

 

   

 

 

   

 

 

 

Other income (expense), net

        

Interest and other expense, net

     (1,545     (1,986     (4,821     (5,117

Interest income, net

     19,479        7,578        55,940        24,044   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expense), net

     17,934        5,592        51,119        18,927   
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss before income taxes

     (1,632,506     (2,052,059     (5,291,693     (5,804,176

Provision for income taxes

     (95     —          (2,226     (800
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (1,632,601   $ (2,052,059   $ (5,293,919   $ (5,804,976
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss per share - basic and diluted

   $ (0.05   $ (0.08   $ (0.17   $ (0.22
  

 

 

   

 

 

   

 

 

   

 

 

 

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

     30,481,168        27,109,787        30,451,058        26,534,357   
  

 

 

   

 

 

   

 

 

   

 

 

 


MITEK SYSTEMS, INC.

NON-GAAP NET INCOME (LOSS) RECONCILIATION

(Unaudited)

 

    

Three Months Ended

June 30,

   

Nine Months Ended

June 30,

 
   2014     2013     2014     2013  

Loss before income taxes

   $ (1,632,506   $ (2,052,059   $ (5,291,693   $ (5,804,176

Add back:

        

Intellectual property litigation expenses

     848,926        712,660        2,587,483        1,693,692   

Stock compensation expense

     922,848        685,633        2,667,969        2,045,767   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP income (loss) before income taxes

     139,268        (653,766     (36,241     (2,064,717

Non-GAAP provision for income taxes

     (95     —          (2,226     (800
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income (loss)

   $ 139,173      $ (653,766   $ (38,467   $ (2,065,517
  

 

 

   

 

 

   

 

 

   

 

 

 

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

   $ 0.00      $ (0.02   $ (0.00   $ (0.08
  

 

 

   

 

 

   

 

 

   

 

 

 

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

     31,057,905        27,109,787        30,451,058        26,534,357   
  

 

 

   

 

 

   

 

 

   

 

 

 

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Mitek Contact:

Peter Salkowski

Managing Director, The Blueshirt Group

ir@miteksystems.com

858-309-1780