mitk-8k_20170202.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): February 2, 2017

 

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.)

 

 

 

600 B Street, Suite 100

San Diego, California

 

92101

(Address of Principal Executive Offices)

 

(Zip Code)

Registrant’s Telephone Number, Including Area Code: (619) 269-6800

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 February 2, 2017, Mitek Systems, Inc. (the “Company”) issued a press release regarding the Company’s financial results for the first quarter ended December 31, 2016.  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 February 2, 2017


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: February 2, 2017

 

By:

/s/ Russell C. Clark

 

 

 

Russell C. Clark

 

 

 

Chief Financial Officer

 

 


Exhibit Index

 

Exhibit

Number

 

Description

99.1

 

Press Release issued on February 2, 2017

 

mitk-ex991_6.htm

 

Exhibit 99.1

 

Mitek Reports 25% Revenue Growth in First Quarter of Fiscal 2017

 

 

SAN DIEGO, CA, February 2, 2017 – 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 2017 ended December 31, 2016.

 

Fiscal First Quarter Financial Highlights

 

 

Revenue increased 25% year over year to $9.3 million.

 

GAAP net loss of ($0.6) million, or ($0.02) per share, compared to GAAP net loss of ($0.3) million, or ($0.01) per share, a year ago.

 

Non-GAAP net income of $1.0 million, or $0.03 per share, compared to non-GAAP net income of $1.3 million, or $0.04 per share, a year ago.

 

Total cash and investments was $34.5 million at the end of the fiscal first quarter.

 

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

 

“Our solutions are playing a key role globally in the digital transformation of money transferors, such as our recently announced deal with MoneyGram, as well as banks, credit card issuers, payments processors, lenders, and other companies. These organizations must comply with ever increasing Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations or face hefty fines for noncompliance. With our market momentum, competitive advantages and solid balance sheet, we are well positioned for continued growth in this large and growing market.”

 

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 888-240-1347, access code: 9951464. International parties should call 913-312-1520 using access code: 9951464. 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 5,500 organizations and used by tens of millions of consumers daily for mobile check deposit, new account opening, insurance quoting 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 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 implementation and launch of the Company’s products 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, 2016 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

(Unaudited)

(amounts in thousands except share data)

 

 

 

 

December 31,

2016

(Unaudited)

 

 

September 30,

2016

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

6,215

 

 

$

9,010

 

Short-term investments

 

 

28,314

 

 

 

24,863

 

Accounts receivable, net

 

 

5,544

 

 

 

4,949

 

Other current assets

 

 

1,153

 

 

 

1,485

 

Total current assets

 

 

41,226

 

 

 

40,307

 

Long-term investments

 

 

 

 

 

1,952

 

Property and equipment, net

 

 

310

 

 

 

440

 

Goodwill and Intangible assets

 

 

5,150

 

 

 

5,646

 

Other non-current assets

 

 

 

 

 

40

 

Total assets

 

$

46,686

 

 

$

48,385

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,380

 

 

$

1,318

 

Accrued payroll and related taxes

 

 

1,570

 

 

 

3,263

 

Deferred revenue, current portion

 

 

2,794

 

 

 

3,391

 

Other current liabilities

 

 

316

 

 

 

355

 

Total current liabilities

 

 

6,060

 

 

 

8,327

 

Deferred revenue, non-current portion

 

 

79

 

 

 

259

 

Other non-current liabilities

 

 

611

 

 

 

314

 

Total liabilities

 

 

6,750

 

 

 

8,900

 

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, 33,274,297 and

   32,781,704 issued and outstanding, as of December 31, 2016 and September 30,

   2016, respectively

 

 

33

 

 

 

33

 

Additional paid-in capital

 

 

72,485

 

 

 

71,036

 

Accumulated other comprehensive loss

 

 

(433

)

 

 

(42

)

Accumulated deficit

 

 

(32,149

)

 

 

(31,542

)

Total stockholders’ equity

 

 

39,936

 

 

 

39,485

 

Total liabilities and stockholders’ equity

 

$

46,686

 

 

$

48,385

 


MITEK SYSTEMS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(amounts in thousands except share data)

 

 

 

 

Three Months Ended

December 31,

 

 

 

2016

 

 

2015

 

Revenue

 

 

 

 

 

 

 

 

Software

 

$

5,983

 

 

$

4,730

 

SaaS, maintenance and consulting

 

 

3,286

 

 

 

2,674

 

Total revenue

 

 

9,269

 

 

 

7,404

 

Operating costs and expenses

 

 

 

 

 

 

 

 

Cost of revenue-software

 

 

214

 

 

 

390

 

Cost of revenue-SaaS, maintenance and consulting

 

 

677

 

 

 

552

 

Selling and marketing

 

 

3,838

 

 

 

2,463

 

Research and development

 

 

2,451

 

 

 

1,707

 

General and administrative

 

 

2,243

 

 

 

2,091

 

Acquisition-related costs and expenses

 

 

518

 

 

 

543

 

Total operating costs and expenses

 

 

9,941

 

 

 

7,746

 

Operating loss

 

 

(672

)

 

 

(342

)

Other income, net

 

 

65

 

 

 

36

 

Loss before income taxes

 

 

(607

)

 

 

(306

)

Income tax provision

 

 

 

 

 

(16

)

Net loss

 

$

(607

)

 

$

(322

)

Net loss per share – basic and diluted

 

$

(0.02

)

 

$

(0.01

)

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

 

 

32,376,671

 

 

 

31,094,417

 


MITEK SYSTEMS, INC.

NON-GAAP NET INCOME (LOSS) RECONCILIATION

(Unaudited)

(amounts in thousands except share data)

 

 

Three Months Ended

December 31,

 

 

2016

 

 

2015

 

Loss before income taxes

$

(607

)

 

$

(306

)

 

 

 

 

 

 

 

 

Add back:

 

 

 

 

 

 

 

Acquisition-related costs and expenses

 

518

 

 

 

543

 

Intellectual property litigation expenses

 

 

 

 

113

 

Stock compensation expense

 

1,085

 

 

 

989

 

 

 

 

 

 

 

 

 

Non-GAAP income before income taxes

 

996

 

 

 

1,339

 

Non-GAAP benefit (provision) for income taxes

 

 

 

 

(16

)

 

 

 

 

 

 

 

 

Non-GAAP net income

$

996

 

 

$

1,323

 

 

 

 

 

 

 

 

 

Non-GAAP net income per share - basic

$

0.03

 

 

$

0.04

 

 

 

 

 

 

 

 

 

Non-GAAP net income per share - diluted

$

0.03

 

 

$

0.04

 

 

 

 

 

 

 

 

 

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

 

32,376,671

 

 

 

31,094,417

 

 

 

 

 

 

 

 

 

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

 

34,695,184

 

 

 

32,064,223

 

________________

 

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