Press Release
Mitek Reports 50% Revenue Growth and Profitability in Second Quarter Fiscal 2016
Second Quarter Fiscal 2016 Highlights
- Total revenue increased 50% year over year to
$8.5 million - The Company signed three new Fortune 500 companies for its mobile ID capture and verification product offerings bringing the total to seven Fortune 500 companies signed during the first six months of FY2016
- GAAP net income increased 15% year over year to
$0.6 million or$0.02 per diluted share - Non-GAAP net income increased 45% year over year to
$2.4 million or$0.07 per diluted share - Total cash and investments at the end of the second quarter was
$31.9 million , compared to$27.6 million at the end of the first quarter of fiscal 2016
Commenting on the results,
"We are pleased to report another strong quarter for
Second Quarter Fiscal 2016 Results
Total revenue for the second quarter of fiscal 2016 was
GAAP net income for the second quarter of fiscal 2016 was
Non-GAAP net income for the second quarter of fiscal 2016 was
The Company ended the second quarter of fiscal 2016 with cash and investments of
Conference Call Information
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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.
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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
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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| CONSOLIDATED BALANCE SHEETS | ||||||||
| (Unaudited) | ||||||||
| (in thousands except share data) | ||||||||
| 2016 | 2015 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 13,226 | $ | 2,753 | ||||
| Short-term investments | 14,935 | 23,921 | ||||||
| Accounts receivable, net | 2,492 | 3,937 | ||||||
| Other current assets | 1,099 | 798 | ||||||
| Total current assets | 31,752 | 31,409 | ||||||
| Long-term investments | 3,753 | - | ||||||
| Property and equipment, net | 867 | 975 | ||||||
| 5,831 | 6,270 | |||||||
| Other non-current assets | 92 | 92 | ||||||
| Total assets | $ | 42,295 | $ | 38,746 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,608 | $ | 1,538 | ||||
| Accrued payroll and related taxes | 1,950 | 2,061 | ||||||
| Deferred revenue, current portion | 3,770 | 3,516 | ||||||
| Other current liabilities | 361 | 289 | ||||||
| Total current liabilities | 7,689 | 7,404 | ||||||
| Deferred revenue, non-current portion | 175 | 222 | ||||||
| Other non-current liabilities | 786 | 687 | ||||||
| Total liabilities | 8,650 | 8,313 | ||||||
| Stockholders' equity | ||||||||
| Preferred stock, | ||||||||
| none issued and outstanding | - | - | ||||||
| Common stock, | ||||||||
| 32,214,855 and 30,521,080 shares issued and outstanding, respectively | 32 | 31 | ||||||
| Additional paid-in capital | 66,979 | 63,905 | ||||||
| Accumulated other comprehensive loss | (125 | ) | (3 | ) | ||||
| Accumulated deficit | (33,241 | ) | (33,501 | ) | ||||
| Total stockholders' equity | 33,645 | 30,433 | ||||||
| Total liabilities and stockholders' equity | $ | 42,295 | $ | 38,746 | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| (in thousands except share data) | |||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||
| Revenue | |||||||||||||||||
| Software | $ | 5,557 | $ | 3,993 | $ | 10,286 | $ | 7,740 | |||||||||
| Services | 2,965 | 1,679 | 5,640 | 3,322 | |||||||||||||
| Total revenue | 8,522 | 5,672 | 15,926 | 11,062 | |||||||||||||
| Operating costs and expenses | |||||||||||||||||
| Cost of revenue-software | 132 | 225 | 522 | 439 | |||||||||||||
| Cost of revenue-maintenance and professional services | 588 | 332 | 1,140 | 616 | |||||||||||||
| Selling and marketing | 2,553 | 1,429 | 5,016 | 2,867 | |||||||||||||
| Research and development | 1,814 | 1,388 | 3,520 | 2,543 | |||||||||||||
| General and administrative | 2,261 | 1,732 | 4,352 | 3,977 | |||||||||||||
| Acquisition-related costs and expenses | 543 | 80 | 1,087 | 0 | |||||||||||||
| Total operating costs and expenses | 7,891 | 5,186 | 15,637 | 10,442 | |||||||||||||
| Operating income | 631 | 486 | 289 | 620 | |||||||||||||
| Other income (expense), net | |||||||||||||||||
| Total other income (expense), net | 30 | 22 | 66 | 36 | |||||||||||||
| Income before income taxes | 661 | 508 | 355 | 657 | |||||||||||||
| Income tax provision | 79 | - | 95 | 3 | |||||||||||||
| Net income | $ | 582 | $ | 508 | $ | 260 | $ | 654 | |||||||||
| Net income per share - basic | $ | 0.02 | $ | 0.02 | $ | 0.01 | $ | 0.02 | |||||||||
| Net income per share - diluted | $ | 0.02 | $ | 0.02 | $ | 0.01 | $ | 0.02 | |||||||||
| Shares used in calculating net income per share - basic | 31,325,577 | 30,697,391 | 31,214,325 | 30,657,308 | |||||||||||||
| Shares used in calculating net income per share - diluted | 33,133,920 | 31,321,259 | 32,625,526 | 31,241,374 | |||||||||||||
| NON-GAAP NET INCOME RECONCILIATION | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| (in thousands except share data) | ||||||||||||||||||
| Three Months Ended | Six Months Ended
| |||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||||
| Income before income taxes | $ | 661 | $ | 508 | $ | 355 | $ | 657 | ||||||||||
| Add back: | ||||||||||||||||||
| Acquisition-related expenses | 543 | 80 | 1,087 | 80 | ||||||||||||||
| Litigation costs | 115 | 199 | 227 | 700 | ||||||||||||||
| Stock compensation expense | 1,172 | 871 | 2,161 | 1,685 | ||||||||||||||
| Non-GAAP income before income taxes | 2,491 | 1,658 | 3,830 | 3,122 | ||||||||||||||
| Non-GAAP provision for income taxes | 79 | - | 95 | 3 | ||||||||||||||
| Non-GAAP net income | $ | 2,412 | $ | 1,658 | $ | 3,735 | $ | 3,119 | ||||||||||
| Non-GAAP net income per share - basic | $ | 0.08 | $ | 0.05 | $ | 0.12 | $ | 0.10 | ||||||||||
| Non-GAAP net income per share - diluted | $ | 0.07 | $ | 0.05 | $ | 0.11 | $ | 0.10 | ||||||||||
| Shares used in calculating non-GAAP net income per share - basic | 31,325,577 | 30,697,391 | 31,214,325 | 30,657,308 | ||||||||||||||
| Shares used in calculating non-GAAP net income per share - diluted | 33,133,920 | 31,321,259 | 32,625,526 | 31,241,374 | ||||||||||||||
Investor Contact:Todd Kehrli orJim Byers MKR Group, Inc. mitk@mkr-group.com
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