SEC Filing | Mitek Systems, Inc.

SECURITIES AND EXCHANGE COMMISSION Washington, DC. 20549 FORM 10-Q (Mark One) [x] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2000 or [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission file number 0-15235 ------- Mitek Systems, Inc. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 87-0418827 - ------------------------------- ------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 10070 Carroll Canyon Road, San Diego, California 92131 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (619) 635-5900 -------------- - -------------------------------------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No . --- --- There were 11,067,221 shares outstanding of the registrant's Common Stock as of May 5, 2000.

PART 1: FINANCIAL INFORMATION MITEK SYSTEMS, INC CONSOLIDATED BALANCE SHEETS UNAUDITED MARCH 31, SEPTEMBER 30, 2000 1999 ---------------------------------------------------- ASSETS CURRENT ASSETS: Cash and cash equivalents $ 1,356,424 $ 1,398,589 Accounts receivable-net 6,275,859 5,006,081 Inventories-net 121,381 58,082 Prepaid expenses and other assets 112,099 69,232 ----------------------------------------------------- Total current assets 7,865,763 6,531,984 PROPERTY AND EQUIPMENT-net 312,009 281,571 OTHER ASSETS 688,599 575,298 ----------------------------------------------------- TOTAL ASSETS $ 8,866,371 $ 7,388,853 ===================================================== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 825,782 $ 738,195 Accrued payroll and related taxes 519,446 720,300 Unearned maintenance income 213,777 203,408 Other accrued liabilities 113,440 53,885 ----------------------------------------------------- Total current liabilities 1,672,445 1,715,788 LONG-TERM LIABILITIES 46,708 51,040 ----------------------------------------------------- Total liabilities 1,719,153 1,766,828 COMMITMENTS AND CONTINGENCIES (Note 3) STOCKHOLDERS' EQUITY Common stock - $.001 par value; 20,000,000 shares authorized, 11,066,751 and 10,438,854 issued and outstanding, respectively 11,067 10,439 Additional paid-in capital 9,109,553 8,507,613 Accumulated deficit (1,973,402) (2,896,027) ----------------------------------------------------- Total stockholders' equity 7,147,218 5,622,025 ----------------------------------------------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 8,866,371 $ 7,388,853 ===================================================== See notes to consolidated financial statements

MITEK SYSTEMS, INC CONSOLIDATED STATEMENTS OF OPERATIONS UNAUDITED THREE MONTHS ENDED SIX MONTHS ENDED MARCH 31, MARCH 31, 2000 1999 2000 1999 ---------------------------------------------------------------------------- NET SALES $ 2,594,208 $ 2,070,509 $ 5,319,292 $ 4,280,986 COST OF SALES 332,724 329,468 713,709 752,121 ---------------------------------------------------------------------------- GROSS MARGIN 2,261,484 1,741,041 4,605,583 3,528,865 COSTS AND EXPENSES: Operations 289,775 142,754 507,924 268,799 General and administrative 457,506 390,246 894,649 896,815 Research and development 472,410 277,917 972,601 573,051 Selling and marketing 704,631 593,604 1,297,507 1,089,160 Other charges Interest (income) - net (2,477) (7,589) (8,723) (17,385) ---------------------------------------------------------------------------- Total costs and expenses 1,921,845 1,396,932 3,663,958 2,810,440 ---------------------------------------------------------------------------- OPERATING INCOME 339,639 344,109 941,625 718,425 OTHER INCOME (EXPENSE) - NET 0 0 0 0 ---------------------------------------------------------------------------- INCOME BEFORE INCOME TAXES 339,639 344,109 941,625 718,425 PROVISION FOR INCOME TAXES 7,000 10,000 19,000 10,000 ---------------------------------------------------------------------------- NET INCOME $ 332,639 $ 334,109 $ 922,625 $ 708,425 EARNINGS PER SHARE - BASIC $ 0.03 $ 0.03 $ 0.09 $ 0.06 ============================================================================ WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC 10,775,290 10,291,623 10,629,695 11,022,535 ============================================================================ EARNINGS PER SHARE - DILUTED $ 0.03 $ 0.03 $ 0.08 $ 0.06 ============================================================================ WEIGHTED AVERAGE NUMBER OF COMMON SHARES AND COMMON SHARE EQUIVALENTS OUTSTANDING - DILUTED 11,562,309 10,575,733 11,474,672 11,188,712 ============================================================================ See notes to consolidated financial statements

MITEK SYSTEMS, INC CONSOLIDATED STATEMENTS OF CASH FLOWS UNAUDITED SIX MONTHS ENDED MARCH 31, 2000 1999 ---------------------------------------------- Net income $ 922,625 $ 708,425 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 197,124 159,885 Loss on sale of property and equipment 1,010 3,442 Value of stock options granted to non-employee 2,670 7,846 Changes in assets and liabilities: Accounts and notes receivable (1,269,778) (366,679) Inventories, prepaid expenses, and other assets (344,966) 80,906 Accounts payable, accrued payroll and related taxes, unearned maintenance income, and other accrued liabilities (47,675) (454,212) ---------------------------------------------- Net cash provided by (used in) operating activities (538,990) 139,613 INVESTING ACTIVITIES Proceeds from note receivable 0 56,478 Purchases of property and equipment (103,073) (93,044) ---------------------------------------------- Net cash used in investing activities (103,073) (36,566) FINANCING ACTIVITIES Repurchase of common stock 0 (14,150) Proceeds from exercise of stock options and warrants 599,998 20,726 ---------------------------------------------- Net cash provided by financing activities 599,998 6,576 ---------------------------------------------- NET INCREASE (DECREASE) IN CASH (42,065) 109,623 CASH AT BEGINNING OF PERIOD 1,398,589 1,740,760 ---------------------------------------------- CASH AT END OF PERIOD $ 1,356,524 $ 1,850,383 ============================================== Supplemental Disclosure of Cash Flow Information Cash paid for income taxes $ 70,802 $ - See notes to consolidated financial statements

MITEK SYSTEMS, INC. NOTES TO FINANCIAL STATEMENTS 1. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, therefore, do not include all information and footnote disclosures that are otherwise required by Regulation S-X and that will normally be made in the Company's Annual Report on Form 10-K. The financial statements do, however, reflect all adjustments (solely of a normal recurring nature) which are, in the opinion of management, necessary for a fair statement of the results of the interim periods presented. Results for the three months ended March 31, 2000 and September 30, 1999 are not necessarily indicative of results which may be reported for any other interim period or for the year as a whole. 2. Inventories Inventories are summarized as follows: March 31, 2000 September 30, 1999 --------------- ------------------ Raw materials $ 29,622 $29,703 Work in process 0 0 Finished goods 91,759 28,379 -------- ------- Total $121,381 $58,082 ========= ======= Inventories are recorded at the lower of cost (on the first-in, first-out basis) or market and are net of a $47,504 and $144,638 reserve for inventory obsolescence for the respective periods. 3. Commitments and contingencies In the general course of business the Company, at various times, has been named in lawsuits. During fiscal 1998 the Company was involved in a number of legal proceedings. All of these proceedings were resolved in October 1998 and the costs of these settlements were included in the fiscal year ended September 30, 1998 financial statements.

MANAGEMENTS' DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following cautionary statements are made pursuant to the Private Securities Litigation Reform Act of 1995 in order for the Company to avail itself of the "safe harbor" provisions of that Act. The discussion and information in Management's' Discussion and Analysis of Financial Condition and Result of Operations (the "MD&A") may contain both historical and forward-looking statements. To the extent that MD&A contains forward-looking statements regarding the financial condition, operating results, business prospects or any other aspect of the Company, please be advised that the Company's actual financial condition, operating results and business performance may differ materially from that projected or estimated by the Company in forward-looking statements. The Company has attempted to identify, in context, certain of the factors that it currently believes may cause actual future experience and results to differ from the Company's current expectations. The difference may be caused by a variety of factors, including but not limited to adverse economic conditions, general decreases in demand for Company products and services, intense competition, including entry of new competitors, increased or adverse federal, state and local government regulation, inadequate capital, unexpected costs, lower revenues and net income than forecast, price increases for supplies, inability to raise prices, the risk of litigation and administrative proceedings involving the Company and its employees, higher than anticipated labor costs, the possible fluctuation and volatility of the Company's operating results and financial condition, adverse publicity and news coverage, inability to carry out marketing and sales plans, loss of key executives, changes in interest rates, inflationary factors, and other specific risks that may be alluded to in this MD&A. The Company's strategy for fiscal 2000 continues its focus on the Company's core strengths, and increased sales and marketing efforts to bring the Company's products to new applications and markets. In particular, Mitek is determined to expand into new markets by addressing the needs of new and different types of customers with a variety of application specific solutions. Mitek also sought to broaden the use of its products with current customers by identifying new and innovative applications of its existing technology. The Company believes that its results for the second quarter of fiscal 2000 ended March 31, 2000 are a result of the successful implementation of that growth strategy. In the three months ending March 31, 2000, revenues were $2,594,000, an increase of $523,000 or 25% over the $2,071,000 revenues in the same period last year. Gross margin for the quarter ended March 31, 2000 was $2,262,000, an increase of $521,000 or 30% over the $1,741,000 gross margin in the same period last year. The Company earned net income of $333,000 or $0.03 per share for the second quarter of fiscal 2000, compared with net income of $334,000 or $0.03 per share for the second quarter of fiscal 1999. In the six months ending March 31, 2000, revenues were $5,319,000, an increase of $1,038,000 or 24% over the $4,281,000 revenues in the same period last year. Gross margin for the six months ended March 31, 2000 was $4,605,000, an increase of $1,076,000 or 30% over the $3,529,000 gross margin in the same period last year. The Company earned net income of $923,000 or $0.09 per share for the six month period ending March 31, 2000, compared with net income of $708,000 or $0.06 per share for the same period last year. The Company continued to maintain its cash position in the second quarter of fiscal 2000. At March 31, 2000 the Company had $1,356,000 in cash and cash equivalents as compared to $1,399,000 on September 30, 1999. The Company retained its $750,000 revolving and $250,000 equipment lines of credit. There were no borrowings under the lines of credit as of March 31, 2000 or September 30, 1999. During the second quarter of fiscal 2000 Mitek announced the installation of its CheckQuest-TM- check imaging solution at Cuyamaca Bank in Santee, California and Two River Community Bank in Middletown, New Jersey. Both installations are expected to improve labor efficiencies and customer service. A new product strategy was also announced that will transition the Company into a provider of powerful, Internet-enabled image processing and recognition solutions that will support the new e-commerce needs of the Company's business partners and end-users. As businesses across all industries deploy more Internet-related solutions, in addition to traditional paper-based solutions, Mitek and its partners are enhancing product lines to support the unique requirements of business-to-business (B2B) software solutions. The

Company's revised market strategy, designed to complement and support these new products, is expected to drive a significant percentage of future revenues. The Company is satisfied with the level of growth in revenue and earnings in the second quarter of fiscal 2000 while maintaining a positive cash position with no borrowings against its lines of credit. The Company will continue to work very closely with its customers to meet their needs and the needs of their customers. The Company is looking for a continued upward trend in the third quarter of fiscal 2000, with growth in most areas of the Company. ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS: Comparison of Three Months and Six Months Ended March 31, 2000 and 1999 NET SALES. Net sales for the three-month period ended March 31, 2000 were$2,594,000, compared to $2,071,000 for the same period in 1999, an increase of $523,000, or 25%. Net sales for the sixth month period ended March 31, 2000 were $5,319,000, compared to $4,281,000 for the same period in 1999, an increase of $1,038,000 or 24%. The increase was primarily attributable to penetrating target markets and successfully executing the Company's growth plan. GROSS MARGIN. Gross margin for the three-month period ended March 31,2000 was $2,262,000, compared to $1,741,000 for the same period in 1999, an increase of $521,000 or 30%. Stated as a percentage of net sales, gross margin increased to 87% for the three-month period ended March 31, 2000 compared to 84% for the same period in 1999. Gross margin for the six-month period ended March 31, 2000 was $4,605,000, compared to $3,529,000 for the same period in 1999, an increase of $1,076,000 or 30%. Stated as a percentage of net sales, gross margins increased to 87% for the sixth month period ended March 31, 2000, compared to 82% for the same period in 1999. Goodwill and license amortization charged to cost of sales was $75,000 (3% of net sales) for the three months ended March 31, 2000 and $51,000 (2% of net sales) for the same period in 1999. Goodwill and license amortization charged to cost of sales was $125,000 (2% of net sales) for the six months ended March 31, 2000 and $101,000 (2% of net sales) for the same period in 1999. The increase in both gross margin and as a percentage of net sales resulted primarily from increased sales and product mix. OPERATIONS. Operations expenses for the three-month period ended March 31, 2000 were $290,000, compared to $143,000 for the same period in 1999, an increase of $147,000 or 103%. Stated as a percentage of net sales, operations expenses was 11% for the three-month period ended March 31, 2000, as compared with 7% for the same period in 1999. The increase in both expenses and percentage of net sales is primarily attributable to staff additions. Operations expenses for the six-month period ended March 31, 2000 were $508,000, compared to $269,000 for the same period in 1999, an increase of $239,000 or 89%. Stated as a percentage of net sales, operations expenses increased to 10% for the six-month period ended March 31, 2000, compared to 6% for the same period in 1999. The increase in expenses and as a percentage of net revenue is primarily attributable to staff additions. GENERAL AND ADMINISTRATIVE. General and administrative expenses for the three-month period ended March 31, 2000 were $457,000, compared to $390,000 for the same period in 1999, an increase of $67,000 or 17%. Stated as a percentage of net sales, general and administrative expenses decreased to 18% for the three month period ended March 31, 2000, compared to 19% for the same period in 1999. The increases in expenses for the three months were primarily attributable to costs associated with outside professional services, while the decrease in the percentage of net sales is primarily attributable to increased sales. General and administrative expenses for the six-month period ended March 31, 2000 were $894,000, compared to $897,000 for the same period in 1999, a decrease of $3,000 or .3%. Stated as a percentage of net sales, general and administrative expenses decreased to 17% for the six-month period ended March 31, 2000, compared to 21% for the same period in 1999. The decrease in expenses for the six months were primarily attributable to costs associated with outside professional services, while the decrease in the percentage of net sales is primarily attributable to increased sales.

RESEARCH AND DEVELOPMENT. Research and development expenses for the three-month period ended March 31, 2000 were $472,000, compared to $278,000 for the same period in 1999, an increase of $194,000 or 70%. The amounts for the three months ended March 31, 2000 and 1999 do not include $110,000 and $32,000, respectively, that was spent on research and development related contract development and charged to cost of sales. Research and development expenses before charges to cost of sales were $582,000 and $310,000 for the three months ended March 31, 2000 and 1999, respectively. The increase in expenses is the result of engineering staff additions and the implementation of certain engineering projects. Stated as a percentage of net sales, research and development expenses before charges to cost of goods sold increased to 22% for the three-month period ended March 31, 2000, compared to 15% for the same period in 1999. The increase as a percentage of net sales for the three-month period is primarily attributable to the increase in absolute dollar expenditures. Research and development expenses for the six-month period ended March 31, 2000 were $973,000, compared to $573,000 for the same period in 1999, an increase of $400,000 or 70%. The amounts for the six months ended March 31, 2000 and 1999 do not include $110,000 and $56,000, respectively, that was spent on research and development related contract development and charged to cost of sales. Research and development expenses before charges to cost of sales were $1,083,000 and $629,000. The increase in expenses is the result of engineering staff additions and the implementation of certain engineering projects. Stated as a percentage of net sales, research and development expenses before charges to cost of goods sold increased to 20% for the six-month period ended March 31, 2000, compared to 15% for the same period in 1999. The increase as a percentage of net sales for the six-month period is primarily attributable to the increase in absolute dollar expenditures. SELLING AND MARKETING. Selling and marketing expenses for the three-month period ended March 31, 2000 were $705,000, compared to $594,000 for the same period in 1999, an increase of $111,000 or 19%. Stated as a percentage of net sales, selling and marketing expenses decreased to 27% from 29% for the same period in 1999. The increase in expenses is primarily attributable to the addition of personnel and increased marketing efforts on certain products. The decrease as a percentage of net sales is primarily attributable to the increase in revenues. Selling and marketing expenses for the six-month period ended March 31, 2000 were $1,297,000, compared to $1,089,000 for the same period in 1999, an increase of $208,000 or 19%. Stated as a percentage of net sales, selling and marketing expenses decreased to 24% from 25% for the same period in 1999. The increase in expenses is primarily attributable to the addition of personnel and increased marketing efforts on certain products. The decrease as a percentage of net sales is primarily attributable to the increase in revenues. INTEREST INCOME. Interest income for the three-month period ended March 31,2000 was $2,000, compared to interest income of $8,000 for the same period in 1999, a decrease of $6,000 or 75%. Interest income for the six-month period ended March 31, 2000 was $9,000, compared to interest income of $17,000 for the same period in 1999, a decrease of $8,000 or 47%. Interest income was generated from invested funds received from the secondary public offering in the quarter ended December 31, 1996, combined with no bank borrowings in the quarters ended March 31, 1999 and 1998. The decline in interest income reflects the use of invested funds. LIQUIDITY AND CAPITAL The Company has financed its cash needs primarily from increased profits in the fourth quarter of fiscal 1999 and the first and second quarters of fiscal 2000, collection of accounts and notes receivable, and execution of operations within budget. Net cash used by operating activities during the year ended March 31, 2000 was $539,000. The primary use of cash from operating activities was an increase in accounts receivable of $1,270,000 and a decrease in accounts payable and accrued expenses of $48,000. The primary source of cash from operating activities was net income of $923,000 plus depreciation and amortization of $197,000. Higher receivables resulted primarily from increased sales. The Company's working capital and current ratio was $6,193,000 and 4.70 at March 31, 2000, and $4,816,000 and 3.81 at September 30, 1999. At March 31, 2000, total liabilities to equity ratio was .24 to 1

compared to .31 to 1 at September 30, 1999. As of March 31, 2000, total liabilities were less by $48,000 than on September 30, 1999. In June 1999, the Company renewed its working capital line of credit of $750,000. The line of credit expires on June 8, 2000 and interest is payable at prime plus 1.5 percentage points. In addition, the Company renewed its equipment credit line in the amount of $250,000 under similar terms and conditions. There were no borrowings under the working capital or equipment lines of credit as of March 31, 2000 or September 30, 1999. The Company believes that together with existing cash, credit available under the credit lines, and cash generated from operations, funds will be sufficient to finance its operations for the next twelve months. All cash in excess of working capital requirements will be kept in short term, investment grade securities. YEAR 2000 Historically, most computer databases, as well as embedded microprocessors in computer systems and industrial equipment, were designed with date data fields which used only two digits of the year. Most computer programs, computers, and embedded microprocessors controlling equipment were programmed to assume that all two digit dates were preceded by "19", causing "00" to be interpreted as the year 1900. This formerly common practice now could result in a computer system or embedded microprocessor which fails to recognize properly a year that begins with "20", rather than "19". This in turn could result in computer system miscalculations or failures, as well as failures of equipment controlled by date-sensitive microprocessors, and is generally referred to as the "Year 2000 problem." 1. The Company's State of Year 2000 Readiness. In 1997 the Company began to formulate a plan to address its year 2000 issues. The Company's Year 2000 plan now contemplates five phases: AWARENESS, ASSESSMENT, REMEDIATION, TESTING, AND IMPLEMENTATION. AWARENESS involves ensuring that employees who deal with the Company's computer assets, and all managers, executives and directors, understand the nature of the Year 2000 problem and the adverse effects on the business operations of the Company that would result from the failure to become and remain Year 2000 ready. Assessment involves the identification and inventorying of all computer assets of the Company (both information technology systems and embedded microprocessors) and the determination as to whether such assets will properly recognize a year that begins with "20", rather than "19". Computer hardware, software and firmware, and embedded microprocessors, that, among other things, properly recognize a year beginning with "20" are said to be "Year 2000 ready". REMEDIATION involves the repair or replacement of computer assets that are not Year 2000 ready. Testing involves the validation of the actions taken in the remediation phase. IMPLEMENTATION is the installation and integration of remediated and tested computer assets into an overall information technology and embedded microprocessor system that is Year 2000 ready. These phases have substantial overlap. The Company has completed Awareness phases (4th Quarter 1998) Assessment phases (4th Quarter 1998) Remediation phases (4th Quarter 1998) Testing (2nd Quarter 1999) and Implementation (3rd Quarter 1999) phases. The Company has assigned Noel Flynn, Vice President of Operations/Customer Support, the responsibility for overseeing the timely completion of each phase of the Company's Year 2000 plan. The Company believes that all employees who deal with the Company's computer assets, and all levels of the Company's management appreciate the importance of Year 2000 readiness, and understand that achieving such readiness is primarily a business problem, not merely a technology problem. The Company has also communicated directly with its vendors of goods and services in an attempt to assure that its key vendors are aware of the importance the Company places on Year 2000 readiness. The Company began its assessment of its internal computer systems in 1997. Computers and applications were identified, assessed and ranked for critical importance to the operations of the Company. Since then, the Company has modified and tested such applications and replaced the one system that was not Year

2000 compliant. The Company has addressed all computer systems that are critical to its operations as of September 1999. The Company has completed its assessment of the potential for Year 2000 problems with embedded microprocessors in its equipment, and has remedied all non-compliant equipment as of September 1999. The Company has mailed information concerning Year 2000 readiness to vendors of goods and services. The Company is not presently dependent upon any single source and supply for critical components or services for its products, and believes it can acquire such products from a number of suppliers. The Company had on-going discussions with all of its vendors of goods and services during 1999 to ensure the uninterrupted supply of such goods and services and to develop contingency plans in the event of the failure of any vendors to become and remain Year 2000 ready. The total cost of completing all five phases of its Year 2000 plan did not exceed $50,000. 2. The Risks of the Company's Year 2000 Issues. If any computer hardware, software applications, or embedded microprocessors critical to the Company's operations have been overlooked in the assessment or remediation phases, if any of the Company's remediated or replaced internal computer systems fail the testing phase, there could be a material adverse effect on the Company's results of operations, liquidity and financial condition of a magnitude which the Company has not yet fully analyzed. In addition, the Company has not yet been assured that (1) the computer systems of all of its "key" or "mission critical" vendors of goods and services will be Year 2000 ready in a timely manner or that (2) the computer systems of third parties with which the Company's computer systems exchange data will be Year 2000 ready both in a timely manner and in a manner compatible with continued data exchange with the Company's computer systems. If the vendors of the Company's most important goods and services, or the suppliers of the Company's necessary energy, telecommunications and transportation needs, fail to provide the Company with (1) the materials and services which are necessary to produce, distribute and sell its product, (2) the electrical power and other utilities necessary to sustain its operations, or (3) reliable means of transporting supplies to its customers, such failure could have a material adverse effect on the results of operations, liquidity and financial condition of the Company. The Company's customers are primarily banks and financial institutions or entities that provide financial services to those industries. The banking industry has indicated it may experience severe problems associated with the Year 2000 problem. Banks and other financial institutions are spending significant capital resources to remedy their own Year 2000 issues. These expenditures may reduce budgeted funds that would otherwise be available to acquire new technologies and systems from the Company and other suppliers. To the extent that those customers experience or continue to experience significant capital costs for Year 2000 compliance, the demand for the Company's products may be reduced because of budgetary constraints.

PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K a. Exhibits: None b. Reports on Form 8-K:

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: May 12, 2000 /s/ JOHN THORNTON -------------------------------------- John Thornton, Chairman, President and Chief Executive Officer

5 3-MOS SEP-30-2000 JAN-01-2000 MAR-31-2000 1,356,424 0 6,599,771 323,912 121,381 7,865,763 1,335,336 1,023,327 8,866,371 1,672,445 46,708 0 0 11,067 9,109,553 8,866,371 2,594,208 2,594,208 332,724 1,924,322 0 0 2,477 339,639 7,000 332,639 0 0 0 332,639 .03 .03