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 28, 2016
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.) | ||
| 8911 Balboa Avenue San Diego, California |
92123 | |||
| (Address of Principal Executive Offices) | (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):
| ¨ | 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 July 28, 2016, Mitek Systems, Inc. (the “Company”) issued a press release regarding the Company’s financial results for the third quarter ended June 30, 2016. 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 |
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 July 28, 2016 | |
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: July 28, 2016 |
By: | /s/ Russell C. Clark | ||||
| Russell C. Clark | ||||||
| Chief Financial Officer | ||||||
Exhibit Index
| Exhibit Number |
Description | |
| 99.1 | Press Release issued on July 28, 2016 | |
Exhibit 99.1
Mitek Reports 41% Revenue Growth and Profitability
in Third Quarter Fiscal 2016
SAN DIEGO, CA, July 28, 2016 – Mitek (NASDAQ: MITK, www.miteksystems.com), a global leader in mobile capture and identity verification software solutions, today announced its financial results for the third quarter of fiscal 2016 ended June 30, 2016.
Third Quarter Fiscal 2016 Highlights
| • | Total revenue increased 41% year over year to $9.1 million |
| • | GAAP net income of $0.7 million, or $0.02 per diluted share |
| • | Non-GAAP net income of $2.4 million, or $0.07 per diluted share |
| • | Total cash and investments increased to $33.2 million at the end of the third quarter, compared to $31.9 million at the end of the second quarter of fiscal 2016 |
Commenting on the results, James DeBello, Chairman and CEO of Mitek, said:
“Our strong quarterly results were driven by revenue growth from both our new mobile ID solutions and our industry leading Mobile Deposit. During the quarter, we licensed our mobile ID solutions to several new logos, including another new Fortune 500 company. We remain focused on establishing Mitek as the leading provider of mobile ID verification solutions to banks and other enterprises in the rapidly growing mobile self-service market. With our market momentum, competitive advantages and strong balance sheet, we are well positioned for continued growth throughout the remainder of the year and beyond.”
Third Quarter Fiscal 2016 Results
Total revenue for the third quarter of fiscal 2016 was $9.1 million, a 41% increase year over year compared to total revenue of $6.4 million in the third quarter of fiscal 2015.
GAAP net income for the third quarter of fiscal 2016 was $0.7 million, or $0.02 per diluted share, compared to GAAP net income of $0.9 million, or $0.03 per diluted share, in the third quarter of fiscal 2015.
Non-GAAP net income for the third quarter of fiscal 2016 was $2.4 million, or $0.07 per diluted share, compared to non-GAAP net income of $2.2 million, or $0.07 per diluted share, in the third quarter of fiscal 2015.
The Company ended the third quarter of fiscal 2016 with cash and investments of $33.2 million, up from $31.9 million at the end of the second quarter of fiscal 2016.
Conference Call Information
Mitek management will host a conference call and live webcast for analysts and investors today at 8:00 a.m. Pacific Time (11:00 a.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 888-471-3843, access code: 2850324. International parties should call 719-325-2215 using access code: 2850324. 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 more than 5,200 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 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, 2015 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, 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.
MITEK SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(amounts in thousands except share data)
| June 30, 2016 (Unaudited) |
September 30, 2015 |
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| ASSETS |
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| Current assets: |
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| Cash and cash equivalents |
$ | 5,009 | $ | 2,753 | ||||
| Short-term investments |
19,908 | 23,921 | ||||||
| Accounts receivable, net |
4,614 | 3,937 | ||||||
| Other current assets |
1,445 | 798 | ||||||
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| Total current assets |
30,976 | 31,409 | ||||||
| Long-term investments |
8,313 | — | ||||||
| Property and equipment, net |
826 | 975 | ||||||
| Goodwill and Intangible assets |
5,735 | 6,270 | ||||||
| Other non-current assets |
92 | 92 | ||||||
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| Total assets |
$ | 45,942 | $ | 38,746 | ||||
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| LIABILITIES AND STOCKHOLDERS’ EQUITY |
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| Current liabilities: |
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| Accounts payable |
$ | 1,107 | $ | 1,538 | ||||
| Accrued payroll and related taxes |
2,440 | 2,061 | ||||||
| Deferred revenue, current portion |
3,815 | 3,516 | ||||||
| Other current liabilities |
650 | 289 | ||||||
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| Total current liabilities |
8,012 | 7,404 | ||||||
| Deferred revenue, non-current portion |
162 | 222 | ||||||
| Other non-current liabilities |
791 | 687 | ||||||
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| Total liabilities |
8,965 | 8,313 | ||||||
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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 |
— | — | ||||||
| Common stock, $0.001 par value, 60,000,000 shares authorized, 32,726,140 and 31,721,114 issued and outstanding, as of June 30, 2016 and September 30, 2015, respectively |
33 | 32 | ||||||
| Additional paid-in capital |
69,514 | 63,905 | ||||||
| Accumulated other comprehensive loss |
(68 | ) | (3 | ) | ||||
| Accumulated deficit |
(32,502 | ) | (33,501 | ) | ||||
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| Total stockholders’ equity |
36,977 | 30,433 | ||||||
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| Total liabilities and stockholders’ equity |
$ | 45,942 | $ | 38,746 | ||||
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MITEK SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(amounts in thousands except share data)
| Three Months Ended June 30, |
Nine Months Ended June 30, |
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| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Revenue |
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| Software |
$ | 5,760 | $ | 4,675 | $ | 16,046 | $ | 12,415 | ||||||||
| Services |
3,345 | 1,765 | 8,985 | 5,087 | ||||||||||||
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| Total revenue |
9,105 | 6,440 | 25,031 | 17,502 | ||||||||||||
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| Operating costs and expenses |
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| Cost of revenue-software |
157 | 266 | 679 | 705 | ||||||||||||
| Cost of revenue-services |
636 | 326 | 1,776 | 942 | ||||||||||||
| Selling and marketing |
2,940 | 1,646 | 7,956 | 4,513 | ||||||||||||
| Research and development |
1,940 | 1,353 | 5,460 | 3,896 | ||||||||||||
| General and administrative |
2,185 | 1,804 | 6,537 | 5,700 | ||||||||||||
| Acquisition-related costs and expenses |
553 | 736 | 1,640 | 816 | ||||||||||||
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| Total operating costs and expenses |
8,411 | 6,131 | 24,048 | 16,572 | ||||||||||||
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| Operating income |
694 | 309 | 983 | 930 | ||||||||||||
| Other income, net |
45 | 30 | 111 | 66 | ||||||||||||
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| Income before income taxes |
739 | 339 | 1,094 | 996 | ||||||||||||
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| Income tax benefit (provision) |
— | 578 | (95 | ) | 575 | |||||||||||
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| Net income |
$ | 739 | $ | 917 | $ | 999 | $ | 1,571 | ||||||||
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| Net income per share – basic |
$ | 0.02 | $ | 0.03 | $ | 0.03 | $ | 0.05 | ||||||||
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| Net income per share – diluted |
$ | 0.02 | $ | 0.03 | $ | 0.03 | $ | 0.05 | ||||||||
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| Shares used in calculating net income per share – basic |
31,823,386 | 30,764,694 | 31,477,723 | 30,704,250 | ||||||||||||
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| Shares used in calculating net income per share – diluted |
34,531,964 | 31,645,696 | 33,461,787 | 31,389,569 | ||||||||||||
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MITEK SYSTEMS, INC.
NON-GAAP NET INCOME (LOSS) RECONCILIATION
(Unaudited)
(amounts in thousands except share data)
| Three Months Ended June 30, |
Nine Months Ended June 30, |
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| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Income (loss) before income taxes |
$ | 739 | $ | 339 | $ | 1,094 | $ | 996 | ||||||||
| Add back: |
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| Acquisition-related costs and expenses |
553 | 736 | 1,639 | 816 | ||||||||||||
| Intellectual property litigation expenses |
186 | 339 | 414 | 1,039 | ||||||||||||
| Stock compensation expense |
947 | 810 | 3,108 | 2,495 | ||||||||||||
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| Non-GAAP income before income taxes |
2,425 | 2,224 | 6,255 | 5,346 | ||||||||||||
| Non-GAAP provision for income taxes |
— | (57 | ) | (95 | ) | (60 | ) | |||||||||
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| Non-GAAP net income |
$ | 2,425 | $ | 2,167 | $ | 6,160 | $ | 5,286 | ||||||||
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| Non-GAAP net income per share—basic |
$ | 0.08 | $ | 0.07 | $ | 0.20 | $ | 0.17 | ||||||||
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| Non-GAAP net income per share—diluted |
$ | 0.07 | $ | 0.07 | $ | 0.18 | $ | 0.17 | ||||||||
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| Shares used in calculating non-GAAP net income per share—basic |
31,823,386 | 30,764,694 | 31,477,723 | 30,704,250 | ||||||||||||
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| Shares used in calculating non-GAAP net income per share—diluted |
34,531,964 | 31,645,696 | 33,461,787 | 31,389,569 | ||||||||||||
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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