mitk-8k_20160128.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): January 28, 2016

 

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 January 28, 2016, Mitek Systems, Inc. (the “Company”) issued a press release regarding the Company’s financial results for the first quarter ended December 31, 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 January 28, 2016


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: January 28, 2016

 

By:

/s/ Russell C. Clark

 

 

 

Russell C. Clark

 

 

 

Chief Financial Officer

 

 


Exhibit Index

 

Exhibit

Number

 

Description

99.1

 

Press Release issued on January 28, 2016

 

mitk-ex991_6.htm

 

Exhibit 99.1

 

 

Mitek Reports 37% Revenue Growth in First Quarter Fiscal 2016

 

Company Signs Four New Fortune 500 Customers for ID Product Offering

 

SAN DIEGO, CA, January 28, 2016 – Mitek (NASDAQ: MITK, www.miteksystems.com), a global leader in mobile capture and identity verification software solutions, today announced its financial results for the first quarter of fiscal 2016 ended December 31, 2015.

 

Fiscal First Quarter 2016 Highlights

 

·

Total revenue increased 37% year over year to $7.4 million

 

·

The Company signed four new Fortune 500 companies across several different verticals for its Mobile Fill ID capture product offering

 

·

The Company generated $1.0 million in cash flows from operations

 

·

Total cash and investments at the end of the first quarter was $27.6 million, compared to $26.7 million at the end of fiscal 2015

 

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

 

“We are very pleased to report another strong quarter for Mitek, driven by increased revenue contribution from both of our new ID capture and verification product offerings, and continued growth in our industry leading mobile check deposit product.

 

“We licensed our ID solutions to several new logos during the quarter, including four new Fortune 500 companies across several different verticals. These new customers will be using our Mobile Fill product offering to more effectively and efficiently serve the rapidly growing mobile self-service channel as they look to increase their new customer conversion metrics.

 

“With our two new ID products, Mobile Fill and Mobile Verify, we are focused on further expansion into the multi-billion-dollar mobile ID verification market in the coming year. Mitek has become the de facto standard in mobile capture in the financial services industry and we are well positioned to leverage this leading position by expanding into the new, high growth mobile ID capture and verification market.

 

“Mobile check deposit remains a tremendous growth opportunity as we continue to see increased adoption in both the consumer and commercial markets. While the number of Americans using mobile deposit continues to increase, it still represents less than 5% of the approximately 19 billion checks deposited in the U.S. each year according to the most recent Fed study, representing a significant growth opportunity in the years to come. Our recently launched Mobile Multi-Check Capture solution is aimed squarely at addressing the untapped commercial mobile deposit market, which makes up two-thirds of the checks deposited annually.

 

“We are very excited about our strong start to fiscal 2016 and look forward to building on our success throughout the remainder of the year.”  


 

Fiscal 2016 First Quarter Results

 

Total revenue for the first quarter of fiscal 2016 was $7.4 million, a 37% increase year over year compared to total revenue of $5.4 million in the first quarter of fiscal 2015.

 

GAAP net loss for the first quarter of fiscal 2016 was ($0.3) million, or a ($0.01) loss per diluted share, compared to GAAP net income of $0.1 million, or breakeven per diluted share, in the first quarter of fiscal 2015.  

 

Non-GAAP net income for the first quarter of fiscal 2016 was $1.3 million, or $0.04 per diluted share, compared to non-GAAP net income of $1.5 million, or $0.05 per diluted share, in the first quarter of fiscal 2015.

 

The Company ended the first quarter of fiscal 2016 with cash and investments of $27.6 million, compared to $26.7 million at the end of fiscal 2015.

 

Conference Call Information

 

Mitek management will host a conference call and live webcast for analysts and investors today at 8:00 a.m. Pacific Time (11:00 a.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 888-417-8516, access code: 1079947. International parties should call 719-325-2361 using access code: 1079947. 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

 

Mitek (MITK) is a global leader in mobile capture and identity verification software solutions. Mitek’s ID document verification allows an enterprise to verify a user’s identity during a mobile transaction, enabling financial institutions, payments companies and other businesses operating in highly regulated markets to transact business safely while increasing revenue from the mobile channel. Mitek also reduces the friction in the mobile user experience with advanced data prefill. These innovative mobile solutions are embedded into the apps of more than 4,500 organizations and used by tens of millions of consumers daily for new account opening, insurance quoting, mobile check deposit and more. Learn more at 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, 2015 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 non-GAAP net income per share that exclude stock compensation expenses, intellectual property litigation costs and acquisition-related costs and 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 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.

CONSOLIDATED BALANCE SHEETS

 

 

 

December 31,

2015

(Unaudited)

 

 

September 30,

2015

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

4,353,905

 

 

$

2,752,638

 

Short-term investments

 

 

21,105,395

 

 

 

23,921,328

 

Accounts receivable, net

 

 

4,237,736

 

 

 

3,936,687

 

Other current assets

 

 

825,856

 

 

 

798,212

 

Total current assets

 

 

30,522,892

 

 

 

31,408,865

 

Long-term investments

 

 

2,144,565

 

 

 

-

 

Property and equipment, net

 

 

940,449

 

 

 

975,335

 

Goodwill and Intangible assets

 

 

5,979,029

 

 

 

6,270,248

 

Other non-current assets

 

 

92,049

 

 

 

92,049

 

Total assets

 

$

39,678,984

 

 

$

38,746,497

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,611,130

 

 

$

1,537,545

 

Accrued payroll and related taxes

 

 

1,233,672

 

 

 

2,061,204

 

Deferred revenue, current portion

 

 

4,225,050

 

 

 

3,516,487

 

Other current liabilities

 

 

317,553

 

 

 

288,937

 

Total current liabilities

 

 

7,387,405

 

 

 

7,404,173

 

Deferred revenue, non-current portion

 

 

189,865

 

 

 

221,833

 

Other non-current liabilities

 

 

734,407

 

 

 

687,379

 

Total liabilities

 

 

8,311,677

 

 

 

8,313,385

 

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, 31,860,865 and

   31,721,114 issued and outstanding, respectively

 

 

31,861

 

 

 

31,721

 

Additional paid-in capital

 

 

65,311,694

 

 

 

63,905,459

 

Accumulated other comprehensive loss

 

 

(153,362

)

 

 

(3,241

)

Accumulated deficit

 

 

(33,822,886

)

 

 

(33,500,827

)

Total stockholders’ equity

 

 

31,367,307

 

 

 

30,433,112

 

Total liabilities and stockholders’ equity

 

$

39,678,984

 

 

$

38,746,497

 


MITEK SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

 

Three Months Ended

December 31,

 

 

 

2015

 

 

2014

 

Revenue

 

 

 

 

 

 

 

 

Software

 

$

4,729,595

 

 

$

3,746,517

 

Services

 

 

2,674,847

 

 

 

1,642,805

 

Total revenue

 

 

7,404,442

 

 

 

5,389,322

 

Operating costs and expenses

 

 

 

 

 

 

 

 

Cost of revenue-software

 

 

390,637

 

 

 

213,910

 

Cost of revenue-services

 

 

551,742

 

 

 

283,491

 

Selling and marketing

 

 

2,462,974

 

 

 

1,438,066

 

Research and development

 

 

1,706,747

 

 

 

1,155,142

 

General and administrative

 

 

2,090,874

 

 

 

2,164,839

 

Acquisition-related costs and expenses

 

 

543,233

 

 

 

-

 

Total operating costs and expenses

 

 

7,746,207

 

 

 

5,255,448

 

Operating income (loss)

 

 

(341,765

)

 

 

133,874

 

Other income (expense), net

 

 

 

 

 

 

 

 

Interest and other expense

 

 

(601

)

 

 

(1,050

)

Interest and other income

 

 

36,650

 

 

 

16,253

 

Total other income (expense), net

 

 

36,049

 

 

 

15,203

 

Income (loss) before income taxes

 

 

(305,716

)

 

 

149,077

 

Income tax provision

 

 

(16,343

)

 

 

(2,897

)

Net income (loss)

 

$

(322,059

)

 

$

146,180

 

Net income (loss) per share – basic

 

$

(0.01

)

 

$

0.00

 

Net income (loss) per share – diluted

 

$

(0.01

)

 

$

0.00

 

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

 

 

31,094,417

 

 

 

30,618,097

 

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

 

 

31,094,417

 

 

 

31,173,815

 


MITEK SYSTEMS, INC.

NON-GAAP NET INCOME (LOSS) RECONCILIATION

(Unaudited)

 

Three Months Ended

December 31,

 

 

2015

 

 

2014

 

Income (loss) before income taxes

$

(305,716

)

 

$

149,077

 

 

 

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

Acquisition-related costs and expenses

 

543,233

 

 

 

-

 

Intellectual property litigation expenses

 

112,717

 

 

 

500,742

 

Stock compensation expense

 

988,857

 

 

 

814,060

 

 

 

 

 

 

 

 

 

Non-GAAP income before income taxes

 

1,339,091

 

 

 

1,463,879

 

Non-GAAP provision for income taxes

 

(16,343

)

 

 

(2,897

)

 

 

 

 

 

 

 

 

Non-GAAP net income

$

1,322,748

 

 

$

1,460,982

 

 

 

 

 

 

 

 

 

Non-GAAP net income per share - basic

$

0.04

 

 

$

0.05

 

 

 

 

 

 

 

 

 

Non-GAAP net income per share - diluted

$

0.04

 

 

$

0.05

 

 

 

 

 

 

 

 

 

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

 

31,094,417

 

 

 

30,618,097

 

 

 

 

 

 

 

 

 

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

 

32,064,223

 

 

 

31,173,815

 

________________

 

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