mitk-8k_20150723.htm

 

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 23, 2015

 

Mitek Systems, Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware

001-35231

87-0418827

(State or Other Jurisdiction

of Incorporation)

(Commission File Number)

(IRS Employer

Identification No.)

 

 

 

8911 Balboa Avenue

San Diego, California

 

92123

(Address of Principal Executive Offices)

 

(Zip Code)

Registrant’s Telephone Number, Including Area Code: (858) 309-1700

Not Applicable

(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 (see General Instructions A.2. below):

¨

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 23, 2015, Mitek Systems, Inc. (the “Company”) issued a press release regarding the Company’s financial results for the third quarter of fiscal 2015.  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.

Exhibits. The exhibits shall be deemed to be filed or furnished, depending on the relevant item requiring such exhibit, in accordance with the provisions of Item 601 of Regulation S-K (17 CFR 229.601)and Instruction B.2 to this form.

 

Exhibit

Number

 

Description

99.1

 

Press Release issued on July 23, 2015


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 thereunto duly authorized.

 

 

 

Mitek Systems, Inc.

 

 

 

 

Date: July 23, 2015

 

By:

/s/ Russell C. Clark

 

 

 

Russell C. Clark

 

 

 

Chief Financial Officer

 

 


Exhibit Index

 

Exhibit

Number

 

Description

99.1

 

Press Release issued on July 23, 2015

 

mitk-ex991_201507237.htm

 

Exhibit 99.1

 

 

 

Mitek Reports Third Quarter Fiscal 2015 Financial Results

 

·

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 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 - 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.

BALANCE SHEETS

 

 

 

June 30,

2015

(Unaudited)

 

 

September 30,

2014

 

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.

STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three Months Ended

June 30,

 

 

Nine Months Ended

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

)

Provision for income taxes

 

 

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

June 30,

 

 

Nine Months Ended

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

 

 

 

-

 

 

 

80,190

 

 

 

-

 

Acquisition-related costs

 

656,012

 

 

 

-

 

 

 

736,131

 

 

 

-

 

Intellectual property litigation expenses

 

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

 

 

 

5,345,829

 

 

 

(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

 

 

$

5,285,791

 

 

$

(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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Read our latest blog post: http://www.miteksystems.com/blog

 

Mitek Contact:

Peter Salkowski

Managing Director, The Blueshirt Group

ir@miteksystems.com

858-309-1780