Mitek Systems, Inc.
Nov 3, 2016

Mitek Reports 37% Revenue Growth and Profitability for Fiscal 2016

SAN DIEGO, Nov. 03, 2016 (GLOBE NEWSWIRE) -- Mitek (NASDAQ:MITK) (www.miteksystems.com), a global leader in mobile capture and identity verification software solutions, today announced its financial results for the fiscal 2016 fourth quarter and full year ended September 30, 2016.

Fiscal Fourth Quarter 2016 Financial Highlights

Fiscal 2016 Full Year Financial Highlights

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

"Our record revenue results for fiscal 2016 were driven by growth from both our new mobile ID solutions and our industry leading Mobile Deposit. We made significant progress during the year establishing Mitek as a leading provider of mobile ID verification solutions to banks and other enterprises in the rapidly growing mobile self-service market. With our market momentum in both mobile ID and mobile deposit we are well positioned for continued growth in fiscal 2017 and beyond."

Fiscal 2016 Fourth Quarter and Full-Year Financial Results

Total revenue for the fourth quarter of fiscal 2016 was $9.7 million, compared to total revenue of $7.9 million in the fourth quarter of fiscal 2015. Total revenue for fiscal 2016 was $34.7 million, compared to $25.4 million in fiscal 2015.

GAAP net income for the fourth quarter of fiscal 2016 was $1.0 million, or $0.03 per diluted share, compared to GAAP net income of $1.0, or $0.03 per diluted share, in the fourth quarter of fiscal 2015. GAAP net income for fiscal 2016 was $2.0 million, or $0.06 per diluted share, compared to a GAAP net income of $2.5 million, or $0.08 per diluted share, in fiscal 2015.

Non-GAAP net income for the fourth quarter of fiscal 2016 was $2.5 million, or $0.07 per diluted share, compared to non-GAAP net income of $2.8 million, or $0.09 per diluted share, in the fourth quarter of fiscal 2015. Non-GAAP net income for fiscal 2016 was $8.7 million, or $0.26 per diluted share, compared to non-GAAP net income of $8.1 million, or $0.26 per diluted share, in fiscal 2015.

The Company ended fiscal 2016 with cash, cash equivalents and investments of $35.8 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 877-874-1588, access code: 3315288. International parties should call 719-325-4800 using access code: 3315288. 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 5,400 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, 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.

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MITEK SYSTEMS, INC. 
NON-GAAP NET INCOME RECONCILIATION 
(Unaudited) 
(amounts in thousands except share data) 
         
 Three Months Ended Twelve Months Ended 
 September 30, September 30, 
  2016   2015   2016   2015  
Income before income taxes$  864  $  987  $  1,958   $  1,983  
         
Add back:        
Acquisition-related costs and expenses   536     552     2,176     1,368  
Litigation costs   47     410     460     1,449  
Stock compensation expense   971     873     4,079     3,368  
          
Non-GAAP income before income taxes   2,418     2,822     8,673     8,168  
Non-GAAP benefit (provision) for income taxes (1)   96     (32)    1     (92) 
         
Non-GAAP net income $  2,514   $  2,790  $  8,674  $  8,076  
         
Non-GAAP net income per share - basic$  0.08  $  0.09  $  0.27  $  0.26  
         
Non-GAAP net income per share - diluted$  0.07  $  0.09  $  0.26  $  0.26  
         
Shares used in calculating non-GAAP net income per share - basic   32,086,223     30,969,157     31,586,535     30,790,258  
         
Shares used in calculating non-GAAP net income per share - diluted     34,859,861     31,664,178     33,818,501     31,480,241  
         
               
(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. 
         
         

 

MITEK SYSTEMS, INC. 
CONSOLIDATED STATEMENTS OF OPERATIONS 
(Unaudited) 
(amounts in thousands except share data) 
         
 Three Months Ended  Twelve Months Ended  
  September 30,  September 30,  
  2016   2015   2016   2015  
Revenue        
Software $  6,540  $  5,455  $  22,586  $  17,870  
SaaS, maintenance and consulting   3,130     2,411     12,115     7,497  
Total revenue   9,670     7,866     34,701     25,367  
Operating costs and expenses        
Cost of revenue - software   274     287     953     992  
Cost of revenue -  SaaS, maintenance and consulting   666     538     2,442     1,479  
Selling and marketing   2,981     1,945     10,937     6,458  
Research and development   2,334     1,681     7,794     5,577  
General and administrative   2,038     1,901     8,575     7,601  
Acquisition-related costs and expenses   536     552     2,176     1,368  
Total operating costs and expenses   8,829     6,904     32,877     23,475  
Operating income   841     962     1,824     1,892  
Other income (expense), net   23     25      134     91  
Income before income taxes   864     987     1,958     1,983  
Income tax benefit (provision)    96     (32)    1     543  
Net income$  960  $  955  $  1,959  $  2,526  
Net income per share - basic$  0.03  $  0.03  $  0.06  $  0.08  
Net income per share - diluted$  0.03  $  0.03  $  0.06  $  0.08  
Shares used in calculating net income per share - basic   32,086,223      30,969,157     31,586,535     30,790,258  
Shares used in calculating net income per share - diluted     34,859,861     31,664,178     33,818,501     31,480,241  
         

 

  
MITEK SYSTEMS, INC. 
CONSOLIDATED BALANCE SHEETS 
(Unaudited) 
(amounts in thousands except share data) 
 
 September 30, September 30, 
  2016   2015  
     
ASSETS    
Current assets:    
Cash and cash equivalents$  9,010  $  2,753  
Short-term investments   24,863     23,921  
Accounts receivable, net   4,949     3,937  
Other current assets   1,485     798  
Total current assets   40,307     31,409  
     
Long-term investments   1,952     -  
Property and equipment, net   440     975  
Goodwill and intangible assets   5,646     6,270  
Other non-current assets   40     92  
Total assets$  48,385  $  38,746  
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
Current liabilities:    
Accounts payable$  1,317  $  1,538  
Accrued payroll and related taxes   3,263     2,061  
Deferred revenue, current portion   3,391     3,516  
Other current liabilities   355     289  
Total current liabilities   8,326     7,404  
     
Deferred revenue, non-current portion   259     222  
Other non-current liabilities   314     687  
Total liabilities   8,899     8,313  
     
Stockholders' equity    
Preferred stock, $0.001 par value, 1,000,000 shares authorized,    
  none issued and outstanding   -     -  
Common stock, $0.001 par value, 60,000,000 shares authorized,    
  32,781,706 and 31,721,114 shares issued and outstanding, respectively     33     32  
Additional paid-in capital   71,036     63,905  
Accumulated other comprehensive loss   (42)    (3) 
Accumulated deficit   (31,541)    (33,501) 
Total stockholders' equity   39,486     30,433  
Total liabilities and stockholders' equity$  48,385  $  38,746  
     
Investor Contact:

Todd Kehrli or Jim Byers

MKR Group, Inc.

mitk@mkr-group.com

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Source: Mitek Systems, Inc.

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