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): May 2, 2012

 

 

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 May 2, 2012, Mitek Systems, Inc. (the “Company”) issued a press release regarding the Company’s financial results for the second quarter of fiscal 2012. 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 May 2, 2012.


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: May 2, 2012


EXHIBIT INDEX

 

Exhibit No.

  

Description

99.1    Press Release issued on May 2, 2012.
Press Release

Exhibit 99.1

 

LOGO

MITEK SYSTEMS REPORTS SECOND QUARTER FISCAL YEAR 2012 RESULTS

 

   

Signed 315 financial institutions as of March 31, 2012

 

   

87 customers launched Mitek Mobile Deposit® as of March 31, 2012

SAN DIEGO – May 2, 2012 — Mitek Systems, Inc. (NASDAQ: MITK; www.miteksystems.com), a leading mobile imaging software solutions provider, today announced financial results for the second quarter of fiscal 2012, which ended March 31, 2012.

Total revenue for the second quarter of 2012 was $1.2 million compared to total revenue of $2.9 million for the second quarter of 2011. The decline in total revenue was primarily driven by the decrease in the number of licenses signed for the Company’s patented imaging software products. Total operating expenses for the second quarter of 2012 were $4.1 million compared to $2.3 million for the second quarter of 2011.

GAAP net loss for the second quarter of 2012 was $2.8 million, or $0.11 per diluted share, compared to net income of $570,000, or $0.02 per diluted share, in the second quarter of 2011.

Non-GAAP net loss for the second quarter of 2012 was $2.2 million, or $0.09 per diluted share, compared to net income of $865,000, or $0.04 per diluted share, in the second quarter of 2011. Please see page 7 of this news release for a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures (unaudited).

“Mobile Deposit momentum continues with five of the top eight retail banks now commercially launched and all eight signed,” said President and CEO James B. DeBello. “We are focused on expanding our product offerings, with Mobile Photo Bill Pay™ and others, to satisfy customer demand. In parallel, we are pursuing partnerships in new market segments, such as the prepaid market, where we can leverage Mitek’s unique position to maximize value for our stakeholders.”


Mitek Systems Reports Second Quarter Fiscal 2012 Financial Results

 

“Despite a challenging second quarter, Mitek has significant strengths that we will leverage to improve our financial performance. We have deep technology expertise, industry-leading market share for Mobile Deposit with 315 of the nation’s top financial institutions and a strong and growing patent portfolio,” DeBello said.

The Company ended the second quarter of fiscal 2012 with cash, cash equivalents and investments of $17.4 million, compared to $16.3 million at the end of fiscal 2011.

Conference Call

Mitek management will host a conference call and live webcast for analysts and investors today at 5:00 p.m. EDT to discuss the Company’s second quarter 2012 financial results. To participate, please dial in as follows approximately ten minutes in advance of the scheduled start time:

 

   

Parties in the United States and Canada can access the call by dialing 1-866-356-4123, using conference code 88407912.

 

   

International parties can access the call by dialing 1-617-597-5393, using conference code 88407912.

Mitek will offer a live webcast of the conference call, which will also include forward-looking information. The webcast will be accessible at: http://www.media-server.com/m/p/xp9shsqh and will be archived on the “Investor Relations” section of the Company’s website at www.miteksystems.com for a period of 30 days. An audio replay of the conference call will be available approximately two hours after the call and will be archived for 30 days. To hear the replay, parties in the United States and Canada should call 1-888-286-8010 and enter conference code 29554555. International parties should call 1-617-801-6888 and enter conference code 29554555.

 

Page 2


Mitek Systems Reports Second Quarter Fiscal 2012 Financial Results

 

About Mitek Systems

Headquartered in San Diego, Calif., Mitek Systems (NASDAQ: MITK) is a mobile imaging software solutions provider that allows users to remotely deposit checks, pay their bills, get insurance quotes, and transfer credit card balances by snapping a picture with their camera-equipped smartphones and tablets instead of using the device keyboard. Mitek’s technology increases convenience for the consumer by eliminating the need to go to the bank branch or automated teller machine, and dramatically reduces processing and customer acquisition costs while increasing customer retention. With a strong patent portfolio, Mitek is positioned as the leading innovator in mobile imaging software and currently provides its solutions to Fortune 500 financial services companies. For more information about Mitek Systems, please visit http://www.miteksystems.com.

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, market opportunities beyond financial services, expansion of product offerings, and the pursuit of partnerships in new market segments are forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties, including, but not limited to, risks that the Company will not be able 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 September 30, 2011 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 earnings per share. In evaluating the Company’s performance, management uses certain non-GAAP financial measures to supplement financial statements prepared under generally accepted accounting principles (GAAP). Management believes these non-GAAP financial measures help indicate the Company’s baseline performance before gains, losses or charges that are considered by management to be outside ongoing operating results. Accordingly, management uses 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 perform related trend analysis, and a better understanding how management plans and measures the Company’s underlying business.

 

Page 3


Mitek Systems Reports Second Quarter Fiscal 2012 Financial Results

 

These non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. In addition, these non-GAAP financial measures may be different from non-GAAP financial measures used by other companies.

© 2012 Mitek Systems. All rights reserved. The Mitek Systems name and logo and Mobile Deposit® are registered trademarks of Mitek Systems, Inc. Other product or service names mentioned herein are the trademarks of their respective owners.

###

Investor Relations:

Julie Cunningham

Vice President, Investor Relations & Corporate Communications

Mitek Systems

858.309.1780

ir@miteksystems.com

Media Relations:

Sarah Schulz

Mix PR

miteksystems@mix-pr.com

 

Page 4


Mitek Systems Reports Second Quarter Fiscal 2012 Financial Results

 

MITEK SYSTEMS, INC.

CONDENSED BALANCE SHEETS

 

     March 31,
2012
    September 30,
2011
 
ASSETS    (Unaudited)        

Current assets:

    

Cash and cash equivalents

   $ 6,221,904      $ 5,655,716   

Short-term investments

     10,395,561        10,187,638   

Accounts receivable, net

     1,529,625        2,956,295   

Other current assets

     520,644        317,382   
  

 

 

   

 

 

 

Total current assets

     18,667,734        19,117,031   

Long-term investments

     818,777        417,230   

Property and equipment, net

     324,416        196,519   

Other non-current assets

     54,409        120,903   
  

 

 

   

 

 

 

Total assets

   $ 19,865,336      $ 19,851,683   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current liabilities:

    

Accounts payable

   $ 761,056      $ 358,907   

Accrued payroll and related taxes

     508,589        496,009   

Deferred revenue

     1,546,749        873,230   

Other current liabilities

     37,666        45,185   
  

 

 

   

 

 

 

Total current liabilities

     2,854,060        1,773,331   

Other non-current liabilities

     72,217        23,061   
  

 

 

   

 

 

 

Total liabilities

     2,926,277        1,796,392   
  

 

 

   

 

 

 

Stockholders’ equity:

    

Preferred stock, $0.001 par value, 1,000,000 shares authorized, none issued and outstanding

     —          —     

Common stock, $0.001 par value, 40,000,000 shares authorized, 25,512,030 and 24,144,366 issued and outstanding, respectively

     25,512        24,144   

Additional paid-in capital

     35,353,830        33,660,397   

Accumulated other comprehensive income

     194        (9,855

Accumulated deficit

     (18,440,477     (15,619,395
  

 

 

   

 

 

 

Total stockholders’ equity

     16,939,059        18,055,291   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 19,865,336      $ 19,851,683   
  

 

 

   

 

 

 

 

Page 5


Mitek Systems Reports Second Quarter Fiscal 2012 Financial Results

 

MITEK SYSTEMS, INC.

CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)

 

    

Three Months Ended

March 31,

   

Six Months Ended

March 31,

 
     2012     2011     2012     2011  

Revenue

        

Software

   $ 505,448      $ 2,338,179      $ 3,397,474      $ 3,278,867   

Maintenance and professional services

     686,289        530,178        1,313,747        993,052   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     1,191,737        2,868,357        4,711,221        4,271,919   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating costs and expenses

        

Cost of revenue-software

     109,528        113,856        257,187        206,246   

Cost of revenue-maintenance and professional services

     200,209        142,218        354,818        257,527   

Selling and marketing

     712,037        564,896        1,562,966        964,208   

Research and development

     1,730,679        642,982        2,909,785        1,232,319   

General and administrative

     1,299,953        834,193        2,463,182        1,457,437   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating costs and expenses

     4,052,406        2,298,145        7,547,938        4,117,737   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating (loss) income

     (2,860,669     570,212        (2,836,717     154,182   
  

 

 

   

 

 

   

 

 

   

 

 

 

Other income (expense), net

        

Interest and other expense, net

     (62,638     (169     (129,703     (384,417

Interest income

     72,114        696        146,138        1,939   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expense), net

     9,476        527        16,435        (382,478
  

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) income before income taxes

     (2,851,193     570,739        (2,820,282     (228,296

Benefit (provision) for income taxes

     3,837        (800     (800     (2,492
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss) income

   $ (2,847,356   $ 569,939      $ (2,821,082   $ (230,788
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss) income per share—basic

   $ (0.11   $ 0.03      $ (0.11   $ (0.01
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss) income per share—diluted

   $ (0.11   $ 0.02      $ (0.11   $ (0.01
  

 

 

   

 

 

   

 

 

   

 

 

 

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

     25,013,284        20,542,502        24,700,047        19,684,925   
  

 

 

   

 

 

   

 

 

   

 

 

 

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

     25,013,284        23,241,963        24,700,047        19,684,925   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

Page 6


Mitek Systems Reports Second Quarter Fiscal 2012 Financial Results

 

MITEK SYSTEMS, INC.

NON-GAAP NET INCOME RECONCILIATION

(unaudited)

 

    

Three Months Ended

March 31,

   

Six Months Ended

March 31,

 
     2012     2011     2012     2011  

(Loss) income before income taxes

   $ (2,851,193   $ 570,739      $ (2,820,282   $ (228,296

Add back:

        

Stock compensation expense

     651,187        295,541        1,152,884        529,584   

Non-cash interest expense on convertible debt

     —          —          —          384,124   

Amortization of capitalized debt issuance costs

     —          —          —          53,945   
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP (loss) income before income taxes

     (2,200,006     866,280        (1,667,398     739,357   

Benefit (provision) for income taxes

     3,837        (800     (800     (2,492
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net (loss) income

   $ (2,196,169   $ 865,480      $ (1,668,198   $ 736,865   
  

 

 

   

 

 

   

 

 

   

 

 

 

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

   $ (0.09   $ 0.04      $ (0.07   $ 0.03   
  

 

 

   

 

 

   

 

 

   

 

 

 

Shares used in computing diluted Non-GAAP net (loss) income per share

     25,013,284        23,241,963        24,700,047        22,247,340   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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