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): February 6, 2014
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 February 6, 2014, Mitek Systems, Inc. (the “Company”) issued a press release regarding the Company’s financial results for the first quarter of fiscal 2014. 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 February 6, 2014. | |
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: February 6, 2014
EXHIBIT INDEX
| Exhibit No. |
Description | |
| 99.1 | Press Release issued on February 6, 2014. | |
Exhibit 99.1
Mitek Reports First Quarter Fiscal 2014 Financial Results
| • | Revenue up 35% year-over-year for first quarter of fiscal 2014 |
| • | Mobile Deposit® licensed financial institutions grew to 1,780 banks signed, 1,362 banks live |
| • | 18th and 19th patents issued for mobile imaging technologies |
SAN DIEGO – February 6, 2014 - Mitek Systems, Inc. (NASDAQ: MITK, www.miteksystems.com), the leading innovator of mobile imaging for financial transactions, today announced its financial results for the first quarter of fiscal 2014, which ended December 31, 2013.
“Strong user trends drove our solid first quarter results. A record 557 banks went live with Mobile Deposit in the quarter, illustrating this product is becoming mainstream” said James B. DeBello, president and CEO of Mitek. “We are excited about the launch of Mitek’s Mobile Photo Payments, our first solution designed for direct billers. As we expand into new areas, Mitek is continuing to develop its innovative mobile imaging platform that will serve the evolving needs of the mobile only consumer.”
Total revenue for the first quarter of fiscal 2014 was $4.5 million compared to total revenue of $3.3 million in the first quarter of fiscal 2013, driven by strong demand for Mitek’s Mobile Deposit product.
GAAP net loss for the first quarter of fiscal 2014 was $1.5 million, or $0.05 per share, compared to GAAP net loss of $1.4 million, or $0.05 per share, in the first quarter of fiscal 2013. Non-GAAP net loss for the first quarter of fiscal 2014 was $0.6 million, or $0.02 per share, compared to non-GAAP net loss of $0.7 million, or $0.03 per diluted share, in the first quarter of fiscal 2013.
Total operating expenses for the first quarter of fiscal 2014 were $5.9 million compared to $4.7 million for the first quarter of fiscal 2013. The increase in total operating expenses was primarily driven by investments in personnel to grow the business as well as litigation expense related to protecting the Company’s intellectual property.
Highlights
| • | 18th and 19th patents issued by USPTO for Mobile Image Quality Assurance and additional Mobile Capture methods; 23 patents are pending |
| • | Mobile Photo Bill Pay® licensed financial institutions grew to 20 banks signed with 13 banks live |
| • | FirstBank first regional bank to offer Mobile Photo Bill Pay® |
| • | Announced collaborations with Kony to deliver Mobile Photo Bill Pay® and Experian® to offer frictionless and safe Mobile Photo Account Opening™ |
Conference Call
Mitek management will host a conference call and live webcast for analysts and investors today at 5:00 p.m. ET to discuss the Company’s 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 1-877-269-7756. |
| • | International parties can access the call by dialing 1-201-689-7817. |
Mitek will offer a live webcast of the conference call, which will also include forward-looking information. The live webcast will be accessible and on the “Investor Relations” section of the Company’s website at www.miteksystems.com. 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 1-877-660-6853 and enter conference code 13575433. International parties should call 1-201-612-7415 and enter conference code 13575433.
About Mitek
Headquartered in San Diego, CA, Mitek (NASDAQ: MITK) is the leading innovator of mobile imaging for financial transactions. Mitek’s patented mobile photo technology automatically captures images of personal and financial documents and then extracts relevant data. This enables consumers to use the Camera as a Keyboard™ to reduce friction for mobile check deposit, account opening, bill payment, insurance quoting, and many other use cases. This innovative technology is licensed by more than 1,000 organizations and used by tens of millions of consumers enabling increased customer acquisition, retention and operational efficiency. 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 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 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, 2013 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 loss per share that exclude stock compensation 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 evaluating 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.
© 2014 Mitek Systems, Inc. All rights reserved. Mobile Photo Bill Pay®, Mobile Deposit®, Mobile Photo Account Opening™ and the Mitek Systems name and logo and are registered trademarks of Mitek Systems, Inc. Other product or service names mentioned herein are the trademarks of their respective owners.
###
MITEK SYSTEMS, INC.
BALANCE SHEETS
| December 31, | September 30, | |||||||
| 2013 | 2013 | |||||||
| (Unaudited) | ||||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | 10,176,985 | $ | 23,294,456 | ||||
| Short-term investments |
13,180,876 | 5,730,872 | ||||||
| Accounts receivable, net |
2,857,062 | 1,494,627 | ||||||
| Other current assets |
563,622 | 661,706 | ||||||
|
|
|
|
|
|||||
| Total current assets |
26,778,545 | 31,181,661 | ||||||
| Long-term investments |
4,052,426 | — | ||||||
| Property and equipment, net |
1,529,710 | 1,629,664 | ||||||
| Other non-current assets |
42,049 | 42,049 | ||||||
|
|
|
|
|
|||||
| Total assets |
$ | 32,402,730 | $ | 32,853,374 | ||||
|
|
|
|
|
|||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||||
| Current liabilities: |
||||||||
| Accounts payable |
$ | 1,540,241 | $ | 1,875,909 | ||||
| Accrued payroll and related taxes |
1,362,395 | 1,455,487 | ||||||
| Deferred revenue, current portion |
3,026,533 | 2,335,532 | ||||||
| Other current liabilities |
120,553 | 151,536 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
6,049,722 | 5,818,464 | ||||||
| Deferred revenue, non-current portion |
461,150 | 511,125 | ||||||
| Other non-current liabilities |
763,765 | 795,043 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
7,274,637 | 7,124,632 | ||||||
|
|
|
|
|
|||||
| 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, 30,431,192 and 30,361,442 issued and outstanding, respectively |
30,432 | 30,361 | ||||||
| Additional paid-in capital |
57,300,061 | 56,431,640 | ||||||
| Accumulated other comprehensive gain |
997 | 1,838 | ||||||
| Accumulated deficit |
(32,203,397 | ) | (30,735,097 | ) | ||||
|
|
|
|
|
|||||
| Total stockholders’ equity |
25,128,093 | 25,728,742 | ||||||
|
|
|
|
|
|||||
| Total liabilities and stockholders’ equity |
$ | 32,402,730 | $ | 32,853,374 | ||||
|
|
|
|
|
|||||
MITEK SYSTEMS, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
| For the three months ended | ||||||||
| December 31, | ||||||||
| 2013 | 2012 | |||||||
| Revenue |
||||||||
| Software |
$ | 3,169,864 | $ | 2,570,706 | ||||
| Maintenance and professional services |
1,292,660 | 738,958 | ||||||
|
|
|
|
|
|||||
| Total revenue |
4,462,524 | 3,309,664 | ||||||
|
|
|
|
|
|||||
| Operating costs and expenses |
||||||||
| Cost of revenue-software |
321,099 | 192,606 | ||||||
| Cost of revenue-maintenance and professional services |
249,598 | 147,390 | ||||||
| Selling and marketing |
1,849,901 | 1,264,052 | ||||||
| Research and development |
1,525,574 | 1,402,753 | ||||||
| General and administrative |
1,997,200 | 1,668,929 | ||||||
|
|
|
|
|
|||||
| Total operating costs and expenses |
5,943,372 | 4,675,730 | ||||||
|
|
|
|
|
|||||
| Operating loss |
(1,480,848 | ) | (1,366,066 | ) | ||||
| Other income (expense), net |
||||||||
| Interest and other expense, net |
(1,700 | ) | (2,025 | ) | ||||
| Interest income |
15,209 | 8,449 | ||||||
|
|
|
|
|
|||||
| Total other income (expense), net |
13,509 | 6,424 | ||||||
|
|
|
|
|
|||||
| Loss before income taxes |
(1,467,339 | ) | (1,359,642 | ) | ||||
| Provision for income taxes |
(961 | ) | — | |||||
|
|
|
|
|
|||||
| Net loss |
$ | (1,468,300 | ) | $ | (1,359,642 | ) | ||
|
|
|
|
|
|||||
| Net loss per share - basic and diluted |
$ | (0.05 | ) | $ | (0.05 | ) | ||
|
|
|
|
|
|||||
| Shares used in calculating basic net loss per share - basic and diluted |
30,402,397 | 26,024,288 | ||||||
|
|
|
|
|
|||||
MITEK SYSTEMS, INC.
NON-GAAP NET LOSS RECONCILIATION
(Unaudited)
| For the three months ended | ||||||||
| December 31, | December 31, | |||||||
| 2013 | 2012 | |||||||
| Loss before income taxes |
$ | (1,467,339 | ) | $ | (1,359,642 | ) | ||
| Add back: |
||||||||
| Stock compensation expense |
829,071 | 656,534 | ||||||
|
|
|
|
|
|||||
| Non-GAAP loss before income taxes |
(638,268 | ) | (703,108 | ) | ||||
| Non-GAAP provision for income taxes |
(961 | ) | — | |||||
|
|
|
|
|
|||||
| Non-GAAP net loss |
$ | (639,229 | ) | $ | (703,108 | ) | ||
|
|
|
|
|
|||||
| Non-GAAP net loss per share - basic and diluted |
$ | (0.02 | ) | $ | (0.03 | ) | ||
|
|
|
|
|
|||||
| Shares used in calculating basic Non-GAAP net loss per share - basic and diluted |
30,402,397 | 26,024,288 | ||||||
|
|
|
|
|
|||||
Connect with us on Facebook: http://www.facebook.com/MitekSystems
Follow us on Twitter: @miteksystems
See us on YouTube: http://www.youtube.com/miteksystems
Read our latest blog post: http://www.miteksystems.com/blog
Mitek Contact:
Peter Salkowski
Managing Director, The Blueshirt Group
ir@miteksystems.com
858-309-1780