mitk-8k_20151105.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): November 5, 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 November 5, 2015, Mitek Systems, Inc. (the “Company”) issued a press release regarding the Company’s financial results for the fourth quarter and fiscal year ended September 30, 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 November 5, 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: November 5, 2015

 

By:

/s/ Russell C. Clark

 

 

 

Russell C. Clark

 

 

 

Chief Financial Officer

 

 


Exhibit Index

 

Exhibit

Number

 

Description

99.1

 

Press Release issued on November 5, 2015

 

mitk-ex991_6.htm

 

Exhibit 99.1

Mitek Achieves Record Revenue, Net Income and EPS

 

·

Record fiscal 2015 revenue up 32% year over year, driven by Mobile DepositÒ growth

 

·

Record fourth quarter revenue up 42% year over year

 

·

Achieved record GAAP and Non-GAAP profitability

SAN DIEGO, CA, November 5, 2015 – Mitek (NASDAQ: MITK, www.miteksystems.com), a leading innovator of mobile capture and identity verification solutions, today announced its financial results for the fiscal 2015 fourth quarter and full year ended September 30, 2015.

Fiscal Fourth Quarter 2015 Financial Highlights

 

·

Fourth quarter revenue of $7.9 million, an increase of 42% year over year

 

·

Fourth quarter GAAP net income of $0.03 per diluted share, compared to breakeven per diluted share a year ago

 

·

Fourth quarter non-GAAP net income of $0.09 per diluted share, an increase of 50% year over year

 

·

The Company generated approximately $1.9 million in cash flow from operations in the fourth quarter, an increase of $2.1 million year over year.

 

·

Cash, cash equivalents and investments at year-end was $26.7 million, an increase of $2.0 million from the fiscal third quarter.

Fiscal 2015 Full Year Financial Highlights

 

·

Full year revenue of $25.4 million, an increase of 32% year over year

 

·

Full year GAAP net income of $0.08 per diluted share, compared to a net loss of $(0.17) per diluted share a year ago

 

·

Full year non-GAAP net income of $0.26 per diluted share, an increase of 333% year over year

 

·

The Company generated approximately $6.1 million in cash flow from operations in fiscal 2015, an increase of $8.6 million year over year.

Commenting on the results, James DeBello, President and CEO of Mitek, said:

“Our industry leading mobile check deposit product continued to be the primary driver of revenue growth in fiscal 2015, enabling us to achieve record revenue, net income and EPS. Mobile check deposit remains a tremendous growth opportunity as it currently represents less than 5% of the approximately 19 billion checks deposited in the


U.S. each year, according to the most recent Fed study. Adoption by both consumers and businesses is growing rapidly, and we expect this trend to drive continued revenue growth for Mitek in fiscal 2016 and beyond. With our successful acquisition of IDchecker and launch of our Photo Verify product we intend to further expand into the multi-billion-dollar mobile ID verification market in the coming year. Mitek has become the de facto standard in mobile capture in financial services and we intend to leverage this position by expanding into this new, high growth market.”

Fiscal 2015 Fourth Quarter and Full-Year Financial Results

Total revenue for the fourth quarter of fiscal 2015 was $7.9 million, compared to total revenue of $5.5 million in the fourth quarter of fiscal 2014. Total revenue for fiscal 2015 was $25.4 million, compared to $19.2 million in fiscal 2014.

GAAP net income for the fourth quarter of fiscal 2015 was $1.0 million, or $0.03 per diluted share, compared to GAAP net income of $2,050, or breakeven per diluted share, in the fourth quarter of fiscal 2014. GAAP net income for fiscal 2015 was $2.5 million, or $0.08 per diluted share, compared to a GAAP net loss of $(5.3) million, or $(0.17) per diluted share, in fiscal 2014.

Non-GAAP net income for the fourth quarter of fiscal 2015 was $2.8 million, or $0.09 per diluted share, compared to non-GAAP net income of $1.9 million, or $0.06 per diluted share, in the fourth quarter of fiscal 2014. Non-GAAP net income for fiscal 2015 was $8.1 million, or $0.26 per diluted share, compared to non-GAAP net income of $1.9 million, or $0.06 per diluted share, in fiscal 2014.

The Company ended fiscal 2015 with cash, cash equivalents and investments of $26.7 million, compared to $26.1 million at the end of fiscal 2014, as operating cash flows of $6.1 million during the year were offset by cash used for the acquisition of IDchecker in June 2015.

Conference Call Information

Mitek management will host a conference call and live webcast for analysts and investors today at 2:00 p.m. Pacific Time (5:00 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 888-427-9376, access code 2164468. International parties should call 719-325-2491 using access code 2164468. 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 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 4,500 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 tax benefits related to the acquisition of IDchecker. 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.

###


MITEK SYSTEMS, INC.

BALANCE SHEETS

 

 

 

September 30,

 

 

 

2015

 

 

2014

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,752,638

 

 

$

7,766,590

 

Short-term investments

 

 

23,921,328

 

 

 

16,269,170

 

Accounts receivable, net

 

 

3,936,687

 

 

 

2,955,350

 

Other current assets

 

 

798,212

 

 

 

704,409

 

Total current assets

 

 

31,408,865

 

 

 

27,695,519

 

Long-term investments

 

 

-

 

 

 

2,072,018

 

Property and equipment, net

 

 

975,335

 

 

 

1,293,270

 

Intangible assets, net

 

 

3,397,571

 

 

 

-

 

Goodwill

 

 

2,872,677

 

 

 

-

 

Other non-current assets

 

 

42,049

 

 

 

42,049

 

Total assets

 

$

38,696,497

 

 

$

31,102,856

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,537,545

 

 

$

1,792,267

 

Accrued payroll and related taxes

 

 

2,061,204

 

 

 

1,434,913

 

Deferred revenue, current portion

 

 

3,516,487

 

 

 

2,826,670

 

Other current liabilities

 

 

288,937

 

 

 

157,649

 

Total current liabilities

 

 

7,404,173

 

 

 

6,211,499

 

Deferred revenue, non-current portion

 

 

221,833

 

 

 

311,225

 

Other non-current liabilities

 

 

687,379

 

 

 

638,099

 

Total liabilities

 

 

8,313,385

 

 

 

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,

   31,721,116 and 30,521,080 shares issued and outstanding, respectively

 

 

31,088

 

 

 

30,521

 

Additional paid-in capital

 

 

63,906,092

 

 

 

59,946,288

 

Accumulated other comprehensive (loss) income

 

 

(3,241

)

 

 

(7,810

)

Accumulated deficit

 

 

(33,500,827

)

 

 

(36,026,966

)

Total stockholders’ equity

 

 

30,433,112

 

 

 

23,942,033

 

Total liabilities and stockholders’ equity

 

$

38,746,497

 

 

$

31,102,856

 

 


MITEK SYSTEMS, INC.

STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three Months Ended

September 30,

 

 

Fiscal Year Ended

September 30,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Software

 

$

5,454,972

 

 

$

3,843,865

 

 

$

17,869,599

 

 

$

13,312,529

 

Services

 

 

2,410,880

 

 

 

1,700,094

 

 

 

7,497,897

 

 

 

5,837,816

 

Total revenue

 

 

7,865,852

 

 

 

5,543,959

 

 

 

25,367,496

 

 

 

19,150,345

 

Operating costs and expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue-software

 

 

287,140

 

 

 

213,911

 

 

 

991,807

 

 

 

1,001,455

 

Cost of revenue-services

 

 

537,673

 

 

 

306,518

 

 

 

1,479,391

 

 

 

1,146,470

 

Selling and marketing

 

 

1,945,375

 

 

 

1,228,733

 

 

 

6,457,854

 

 

 

6,836,292

 

Research and development

 

 

1,680,551

 

 

 

1,273,850

 

 

 

5,576,806

 

 

 

6,019,573

 

General and administrative

 

 

1,901,404

 

 

 

2,585,961

 

 

 

7,601,857

 

 

 

9,554,381

 

Acquisition-related costs and expenses

 

 

551,809

 

 

 

-

 

 

 

1,368,100

 

 

 

-

 

Total operating costs and expenses

 

 

6,903,952

 

 

 

5,608,973

 

 

 

23,475,815

 

 

 

24,558,171

 

Operating income (loss)

 

 

961,900

 

 

 

(65,014

)

 

 

1,891,681

 

 

 

(5,407,826

)

Other income (expense), net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and other expense

 

 

(788

)

 

 

(1,623

)

 

 

(3,299

)

 

 

(6,445

)

Interest and other income

 

 

26,108

 

 

 

68,687

 

 

 

94,737

 

 

 

124,628

 

Total other income (expense), net

 

 

25,320

 

 

 

67,064

 

 

 

91,438

 

 

 

118,183

 

Income (loss) before income taxes

 

 

987,220

 

 

 

2,050

 

 

 

1,983,119

 

 

 

(5,289,643

)

Income tax benefit (provision)

 

 

(31,872

)

 

 

-

 

 

 

543,020

 

 

 

(2,226

)

Net income (loss)

 

$

955,348

 

 

$

2,050

 

 

$

2,526,139

 

 

$

(5,291,869

)

Net income (loss) per share – basic

 

$

0.03

 

 

$

0.00

 

 

$

0.08

 

 

$

(0.17

)

Net income (loss) per share – diluted

 

$

0.03

 

 

$

0.00

 

 

$

0.08

 

 

$

(0.17

)

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

 

 

30,969,157

 

 

 

30,510,587

 

 

 

30,790,258

 

 

 

30,466,063

 

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

 

 

31,664,178

 

 

 

31,022,148

 

 

 

31,480,241

 

 

 

30,466,063

 

 


MITEK SYSTEMS, INC.

NON-GAAP NET INCOME (LOSS) RECONCILIATION

(Unaudited)

 

 

Three Months Ended

September 30,

 

 

Fiscal Year Ended

September 30,

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

Income (loss) before income taxes

$

987,220

 

 

$

2,050

 

 

$

1,983,119

 

 

$

(5,289,643

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition-related expenses

 

485,252

 

 

  -

 

 

 

565,412

 

 

  -

 

Acquisition-related costs

 

66,557

 

 

  -

 

 

 

802,688

 

 

  -

 

Intellectual property litigation expenses

 

410,201

 

 

 

1,130,135

 

 

 

1,449,041

 

 

 

3,717,618

 

Stock compensation expense

 

872,717

 

 

 

776,510

 

 

 

3,367,486

 

 

 

3,444,480

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP income (loss) before income taxes

 

2,821,947

 

 

 

1,908,695

 

 

 

8,167,746

 

 

 

1,872,455

 

Non-GAAP provision for income taxes (1)

 

(31,872

)

 

 

-

 

 

 

(91,910

)

 

 

(2,226

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net income (loss)

$

2,790,075

 

 

$

1,908,695

 

 

$

8,075,836

 

 

$

1,870,229

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

0.09

 

 

$

0.06

 

 

$

0.26

 

 

$

0.06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$

0.09

 

 

$

0.06

 

 

$

0.26

 

 

$

0.06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

30,969,157

 

 

 

30,510,587

 

 

 

30,790,258

 

 

 

30,466,063

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

31,664,178

 

 

 

31,022,148

 

 

 

31,480,241

 

 

 

31,276,085

 

________________

(1) Non-GAAP provision for income taxes for the year ended September 30, 2015 excludes a GAAP tax benefit of $634,930 related to the acquisition of IDchecker.

 

Follow Mitek on LinkedIn: http://www.linkedin.com/company/mitek-systems-inc.

Follow Mitek on Twitter: @miteksystems

Connect with Mitek on Facebook: http://www.facebook.com/MitekSystems

See Mitek on YouTube: http://www.youtube.com/miteksystems

Read Mitek’s latest blog post: http://www.miteksystems.com/blog

Investor Contact:

Todd Kehrli or Jim Byers

MKR Group, Inc.

mitk@mkr-group.com