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): July 23, 2015
Mitek Systems, Inc.
(Exact name of Registrant as Specified in Its Charter)
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Delaware |
001-35231 |
87-0418827 |
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(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
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8911 Balboa Avenue San Diego, California |
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92123 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
Registrant’s Telephone Number, Including Area Code: (858) 309-1700
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):
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¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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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 July 23, 2015, Mitek Systems, Inc. (the “Company”) issued a press release regarding the Company’s financial results for the third quarter of fiscal 2015. 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.
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Exhibit Number |
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Description |
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99.1 |
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Press Release issued on July 23, 2015 |
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.
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Mitek Systems, Inc. |
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Date: July 23, 2015 |
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By: |
/s/ Russell C. Clark |
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Russell C. Clark |
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Chief Financial Officer |
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Exhibit Number |
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Description |
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99.1 |
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Press Release issued on July 23, 2015 |
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Exhibit 99.1 |
Mitek Reports Third Quarter Fiscal 2015 Financial Results
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· |
Record quarterly revenue of $6.4 million, up 38% year-over-year |
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· |
Ten consecutive quarters of year-over-year revenue growth |
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· |
GAAP profit of $0.9 million, recording fourth consecutive profitable quarter |
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· |
Mobile Deposit® surpasses new milestone, licensed by over 4,000 financial institutions |
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· |
Acquired IDchecker, a global provider of identity document verification and facial recognition solutions |
SAN DIEGO – July 23, 2015 - Mitek Systems, Inc. (NASDAQ: MITK, www.miteksystems.com), the leading innovator of mobile imaging for financial transactions and identification, today announced its financial results for the third quarter of fiscal 2015, which ended June 30, 2015.
“Our quarterly revenue grew 38% year-over-year to over $6 million, demonstrating our success at providing a superior mobile experience,” said James B. DeBello, president and CEO of Mitek. “Our acquisition of IDchecker solidifies Mitek’s position as a global leader in mobile capture and identity solutions, increasing our recurring revenues with a cloud-based model.”
Total revenue for the third quarter of fiscal 2015 was $6.4 million compared to total revenue of $4.7 million in the third quarter of fiscal 2014, driven by Mitek’s Mobile Deposit® and identity solutions.
GAAP net income for the third quarter of fiscal 2015 was $917,000, or $0.03 per diluted share, compared to GAAP net loss of $(1.6) million, or $(0.05) per share, in the third quarter of fiscal 2014. Non-GAAP net income for the third quarter of fiscal 2015 was $2.2 million, or $0.07 per diluted share, compared to non-GAAP net income of $139,000, or breakeven per diluted share, in the third quarter of fiscal 2014.
Fiscal 2015 Outlook
Fiscal 2015 revenue is expected to be between $23.5 million to $24.5 million, an increase of $1 million to both ends of the prior guidance range.
Mitek management will host a conference call and live webcast for analysts and investors today at 2 p.m. Pacific Time (5 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 888-299-7209, access code 3912617. International parties should call 719-325-2308, access code 3912617. Please dial in approximately 10 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 10 minutes prior to the start of the call to download and install any necessary audio software.
About Mitek
Headquartered in San Diego, CA, Mitek (NASDAQ: MITK) is the leading innovator of mobile capture and identity solutions for customer acquisition. Mitek’s mobile photo technology enables consumers to use the Camera as a Keyboard™ to reduce friction for mobile check deposit, account opening, insurance quoting, payments, and ID document authentication. This innovative mobile technology is licensed by more than 4,100 organizations and used by tens of millions of consumers. In June of 2015, Mitek acquired IDchecker, a global provider of cloud based identity document verification and facial recognition solutions. The acquisition broadens Mitek’s global presence, expands document coverage to more than 3,500 document types and adds international customers in payments, financial services and information services. 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, 2014 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 (loss) and non-GAAP net income (loss) per share that exclude stock compensation expenses, litigation costs, acquisition-related costs and expenses, and certain income tax provisions or benefits. 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.
© 2015 Mitek Systems, Inc. All rights reserved. Mobile Photo Bill Pay®, Mobile Deposit®, Mobile Photo Account Opening™ and the Mitek Systems name and logo 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
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June 30, 2015 (Unaudited) |
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September 30, 2014 |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
2,730,826 |
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$ |
7,766,590 |
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Short-term investments |
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21,222,669 |
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16,269,170 |
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Accounts receivable, net |
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3,807,947 |
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2,955,350 |
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Other current assets |
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832,341 |
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704,409 |
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Total current assets |
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28,593,783 |
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27,695,519 |
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Long-term investments |
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763,005 |
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2,072,018 |
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Property and equipment, net |
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1,065,633 |
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1,293,270 |
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Intangible assets |
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6,437,395 |
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- |
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Other non-current assets |
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92,049 |
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42,049 |
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Total assets |
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$ |
36,951,865 |
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$ |
31,102,856 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
2,341,468 |
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$ |
1,792,267 |
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Accrued payroll and related taxes |
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1,460,842 |
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1,434,913 |
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Deferred revenue, current portion |
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3,674,946 |
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2,826,670 |
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Other current liabilities |
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295,375 |
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157,649 |
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Total current liabilities |
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7,772,631 |
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6,211,499 |
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Deferred revenue, non-current portion |
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255,750 |
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311,225 |
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Other non-current liabilities |
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751,955 |
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638,099 |
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Total liabilities |
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8,780,336 |
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7,160,823 |
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Stockholders’ equity: |
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Preferred stock, $0.001 par value, 1,000,000 shares authorized, none issued and outstanding |
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- |
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- |
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Common stock, $0.001 par value, 60,000,000 shares authorized, 30,855,511 and 30,521,080 issued and outstanding, respectively |
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30,856 |
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30,521 |
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Additional paid-in capital |
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62,603,445 |
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59,946,288 |
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Accumulated other comprehensive gain (loss) |
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(6,597 |
) |
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(7,810 |
) |
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Accumulated deficit |
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(34,456,175 |
) |
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(36,026,966 |
) |
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Total stockholders’ equity |
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28,171,529 |
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23,942,033 |
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Total liabilities and stockholders’ equity |
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$ |
36,951,865 |
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$ |
31,102,856 |
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STATEMENTS OF OPERATIONS
(Unaudited)
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Three Months Ended June 30, |
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Nine Months Ended June 30, |
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2015 |
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2014 |
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2015 |
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2014 |
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Revenue |
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Software |
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$ |
4,675,096 |
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$ |
3,176,686 |
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$ |
12,414,627 |
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$ |
9,468,663 |
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Services |
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1,764,899 |
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1,483,038 |
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5,087,017 |
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4,137,723 |
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Total revenue |
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6,439,995 |
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4,659,724 |
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17,501,644 |
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13,606,386 |
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Operating costs and expenses |
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Cost of revenue-software |
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265,511 |
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293,877 |
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704,667 |
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787,544 |
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Cost of revenue-services |
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325,819 |
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313,709 |
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941,718 |
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839,953 |
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Selling and marketing |
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1,645,770 |
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1,810,084 |
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4,512,479 |
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5,607,559 |
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Research and development |
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1,353,285 |
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1,589,521 |
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3,896,255 |
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4,745,723 |
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General and administrative |
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1,804,025 |
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2,302,973 |
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5,700,453 |
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6,968,419 |
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Acquisition-related costs and expenses |
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736,172 |
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- |
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816,291 |
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- |
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Total operating costs and expenses |
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6,130,582 |
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6,310,164 |
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16,571,863 |
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18,949,198 |
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Operating income (loss) |
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309,413 |
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(1,650,440 |
) |
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929,781 |
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(5,342,812 |
) |
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Other income (expense), net |
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Interest and other expense |
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(342 |
) |
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(1,545 |
) |
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(2,511 |
) |
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(4,821 |
) |
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Interest and other income |
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30,101 |
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19,479 |
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68,629 |
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55,940 |
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Total other income (expense), net |
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29,759 |
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17,934 |
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66,118 |
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51,119 |
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Income (loss) before income taxes |
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|
339,172 |
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(1,632,506 |
) |
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|
995,899 |
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(5,291,693 |
) |
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Provision for income taxes |
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577,789 |
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(95 |
) |
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574,892 |
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(2,226 |
) |
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Net income (loss) |
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$ |
916,961 |
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|
$ |
(1,632,601 |
) |
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$ |
1,570,791 |
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$ |
(5,293,919 |
) |
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Net income (loss) per share – basic |
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$ |
0.03 |
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$ |
(0.05 |
) |
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$ |
0.05 |
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$ |
(0.17 |
) |
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Net income (loss) per share – diluted |
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$ |
0.03 |
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$ |
(0.05 |
) |
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$ |
0.05 |
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$ |
(0.17 |
) |
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Shares used in calculating net income (loss) per share – basic |
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|
30,764,694 |
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30,481,168 |
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30,704,250 |
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30,451,058 |
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Shares used in calculating net income (loss) per share – diluted |
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|
31,645,696 |
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|
|
30,481,168 |
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31,389,569 |
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30,451,058 |
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NON-GAAP NET INCOME (LOSS) RECONCILIATION
(Unaudited)
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Three Months Ended June 30, |
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Nine Months Ended June 30, |
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2015 |
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2014 |
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2015 |
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2014 |
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Income (loss) before income taxes |
$ |
339,172 |
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$ |
(1,632,506 |
) |
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$ |
995,899 |
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$ |
(5,291,693 |
) |
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Add back: |
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Acquisition-related expenses |
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80,160 |
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- |
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80,190 |
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- |
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Acquisition-related costs |
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656,012 |
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- |
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|
736,131 |
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- |
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Intellectual property litigation expenses |
|
339,098 |
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|
848,926 |
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|
1,038,840 |
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|
2,587,483 |
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Stock compensation expense |
|
809,588 |
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|
922,848 |
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|
2,494,769 |
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|
|
2,667,969 |
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|
|
|
|
|
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Non-GAAP income (loss) before income taxes |
|
2,224,030 |
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|
|
139,268 |
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|
5,345,829 |
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|
|
(36,241 |
) |
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Non-GAAP provision for income taxes (1) |
|
(57,141 |
) |
|
|
(95 |
) |
|
|
(60,038 |
) |
|
|
(2,226 |
) |
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|
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|
|
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|
Non-GAAP net income (loss) |
$ |
2,166,889 |
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|
$ |
139,173 |
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|
$ |
5,285,791 |
|
|
$ |
(38,467 |
) |
|
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|
|
|
|
|
|
|
|
|
|
|
|
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|
Non-GAAP net income (loss) per share - basic |
$ |
0.07 |
|
|
$ |
0.00 |
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|
$ |
0.17 |
|
|
$ |
(0.00 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Non-GAAP net income (loss) per share - diluted |
$ |
0.07 |
|
|
$ |
0.00 |
|
|
$ |
0.17 |
|
|
$ |
(0.00 |
) |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in calculating non-GAAP net income (loss) per share - basic |
|
30,764,694 |
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|
|
30,481,168 |
|
|
|
30,704,250 |
|
|
|
30,451,058 |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Shares used in calculating non-GAAP net income (loss) per share - diluted |
|
31,645,696 |
|
|
|
31,057,905 |
|
|
|
31,389,569 |
|
|
|
30,451,058 |
|
________________
(1) Non-GAAP provision for income taxes for the three and nine month periods ended June 30, 2015 excludes a GAAP tax benefit of $634,930 related to the acquisition of IDchecker.
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Mitek Contact:
Peter Salkowski
Managing Director, The Blueshirt Group
ir@miteksystems.com
858-309-1780