Mitek Systems, Inc.
MITEK SYSTEMS INC (Form: 8-K, Received: 04/27/2017 16:13:33)


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): April 27, 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))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.





Item 2.02 Results of Operations and Financial Condition.
On April 27, 2017 , Mitek Systems, Inc. (the “Company”) issued a press release regarding the Company’s financial results for the second quarter ended March 31, 2017 .  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 April 27, 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.
 
 
 
 
April 27, 2017
 
By:
/s/ Russell C. Clark
 
 
 
Russell C. Clark
 
 
 
Chief Financial Officer
Exhibit Index
 
Exhibit Number
 
Description
99.1
 
Press Release issued on April 27, 2017





Exhibit 99.1
 
Mitek Reports Record Revenue and Profitability
in Second Quarter of Fiscal 2017


SAN DIEGO, CA, April 27, 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 second quarter of fiscal 2017 ended March 31, 2017.

Fiscal Second Quarter Financial Highlights

Record total revenue of $11.4 million, up 34% year over year.
SaaS revenue of $1.7 million, up 41% year over year.
Record GAAP net income of $1.2 million, or $0.03 per diluted share, up 109% year over year.
Record Non-GAAP net income of $3.0 million, or $0.08 per diluted share, up 23% year over year.
Cash and investments totaled $39.9 million at March 31, 2017, up $5.4 million, or 16% from the first fiscal quarter.

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

“We are pleased to report the best quarter in Mitek’s history. Our record revenue and profits were driven by growth from both our ID verification and industry leading mobile check deposit products. Our ID solutions are playing a key role globally in the digital transformation of financial services and other companies who need to verify the identity of their customers to meet regulatory requirements. We believe that our market momentum, competitive advantages, global footprint and solid balance sheet position us well 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 1:30 p.m. Pacific Time (4:30 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 888-378-4353, access code 8540639. International parties should call 719-457-2605 using access code 8540639. 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 approximately 5,600 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, which helps identify trends in the Company's underlying business and provides 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)
 
 
 
 
March 31, 2017 (Unaudited)
 
September 30, 2016
ASSETS
 
 

 
 

Current assets:
 
 

 
 

Cash and cash equivalents
 
$
12,959

 
$
9,010

Short-term investments
 
23,051

 
24,863

Accounts receivable, net
 
5,104

 
4,949

Other current assets
 
1,130

 
1,485

Total current assets
 
42,244

 
40,307

Long-term investments
 
3,896

 
1,952

Property and equipment, net
 
474

 
440

Goodwill and intangible assets
 
5,088

 
5,646

Other non-current assets
 
62

 
40

Total assets
 
$
51,764

 
$
48,385

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 

 
 

Current liabilities:
 
 

 
 

Accounts payable
 
$
1,820

 
$
1,318

Accrued payroll and related taxes
 
2,370

 
3,263

Deferred revenue, current portion
 
3,677

 
3,391

Other current liabilities
 
348

 
355

Total current liabilities
 
8,215

 
8,327

Deferred revenue, non-current portion
 
51

 
259

Other non-current liabilities
 
686

 
314

Total liabilities
 
8,952

 
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, 33,324,328 and 32,781,704 issued and outstanding, as of March 31, 2017 and September 30, 2016, respectively
 
33

 
33

Additional paid-in capital
 
74,067

 
71,036

Accumulated other comprehensive loss
 
(356
)
 
(42
)
Accumulated deficit
 
(30,932
)
 
(31,542
)
Total stockholders’ equity
 
42,812

 
39,485

Total liabilities and stockholders’ equity
 
$
51,764

 
$
48,385






MITEK SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(amounts in thousands except share data)
 
 
 
 
Three Months Ended March 31,
 
Six Months Ended March 31,
 
2017
 
2016
 
2017
 
2016
Revenue
 

 
 

 
 
 
 
Software
$
7,797

 
$
5,556

 
$
13,780

 
$
10,286

SaaS, maintenance and consulting
3,622

 
2,966

 
6,908

 
5,640

Total revenue
11,419

 
8,522

 
20,688

 
15,926

Operating costs and expenses
 

 
 

 
 
 
 
Cost of revenue-software
154

 
132

 
368

 
522

Cost of revenue-SaaS, maintenance and consulting
676

 
588

 
1,353

 
1,140

Selling and marketing
3,704

 
2,553

 
7,542

 
5,016

Research and development
2,401

 
1,813

 
4,852

 
3,520

General and administrative
2,742

 
2,264

 
4,985

 
4,355

Acquisition-related costs and expenses
518

 
541

 
1,036

 
1,084

Total operating costs and expenses
10,195

 
7,891

 
20,136

 
15,637

Operating income
1,224

 
631

 
552

 
289

Other income, net
67

 
30

 
132

 
66

Income before income taxes
1,291

 
661

 
684

 
355

Income tax provision
(74
)
 
(79
)
 
(74
)
 
(95
)
Net income
$
1,217

 
$
582

 
$
610

 
$
260

Net income per share – basic
$
0.04

 
$
0.02

 
$
0.02

 
$
0.01

Net income per share – diluted
$
0.03

 
$
0.02

 
$
0.02

 
$
0.01

Shares used in calculating net income per share – basic
32,786,079

 
31,325,577

 
32,581,988

 
31,214,325

Shares used in calculating net income per share – diluted
34,815,304

 
33,133,920

 
34,818,392

 
32,625,526






MITEK SYSTEMS, INC.
NON-GAAP NET INCOME (LOSS) RECONCILIATION
(Unaudited)
(amounts in thousands except share data)
 
 
 
Three Months Ended March 31,
 
Six Months Ended March 31,
 
2017
 
2016
 
2017
 
2016
Income before income taxes
$
1,291

 
$
661

 
$
684

 
$
355

Add back:
 
 
 
 
 
 
 
Acquisition-related costs and expenses
518

 
541

 
1,036

 
1,084

Litigation costs

 
114

 

 
227

Stock compensation expense
1,223

 
1,172

 
2,308

 
2,161

Non-GAAP income before income taxes
3,032

 
2,488

 
4,028

 
3,827

Non-GAAP provision for income taxes
(74
)
 
(79
)
 
(74
)
 
(95
)
Non-GAAP net income
2,958

 
2,409

 
3,954

 
3,732

Non-GAAP income per share - basic
$
0.09

 
$
0.08

 
$
0.12

 
$
0.12

Non-GAAP income per share - diluted
$
0.08

 
$
0.07

 
$
0.11

 
$
0.11

Shares used in calculating non-GAAP net income per share - basic
32,786,079

 
31,325,577

 
32,581,988

 
31,214,325

Shares used in calculating non-GAAP net income per share - diluted
34,815,304

 
33,133,920

 
34,818,392

 
32,625,526

________________
 
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