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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: NOVEMBER 18, 2003
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 Identification No.)
incorporation or organization)
14145 DANIELSON STREET, SUITE B
POWAY, CA 92064
(Address of principal executive offices)
(858) 513-4600
(Registrant's telephone number, including area code)
NOT APPLICABLE
(Former name or former address, if changed since last report)
ITEM 7(c). EXHIBITS
99.1 Press release dated November 18, 2003.
ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On November 18, 2003, Mitek Systems, Inc. issued a press release announcing
financial results for the fourth quarter and fiscal year ended September 30,
2003. A copy of the release is attached as Exhibit 99.1 and incorporated by
reference herein.
The information in this Form 8-K and the Exhibit attached hereto 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 liabilities of
that Section, nor shall it be deemed incorporated by reference in any filing
under the Securities Act of 1933, as amended or the Exchange Act, regardless of
any general incorporation language in such filing.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MITEK SYSTEMS, INC.
Date: November 18, 2003 By: /s/ John M. Thornton
------------------------
John M. Thornton
Chairman of the Board of Directors and
Chief Financial Officer
INDEX TO EXHIBITS
EXHIBIT
NUMBER DESCRIPTION
- ------- -------------------------------------
99.1 PRESS RELEASE DATED NOVEMBER 18, 2003.
Exhibit 99.1
Mitek Systems Announces Fiscal
Fourth Quarter and Year-End 2003 Results
POWAY, Calif.--(BUSINESS WIRE)--Nov. 18, 2003--Mitek Systems, Inc.
(Nasdaq:MITK), a leading developer of automated check imaging and
document processing solutions, today announced financial results for
the fourth quarter and fiscal year ended September 30, 2003.
Net sales for the fiscal fourth quarter of 2003 were $1.7 million,
compared with $3.9 million in the same quarter last year, and $3.0
million in the third quarter of fiscal 2003.
Gross margin for the fiscal fourth quarter of 2003 was 40 percent,
compared with 60 percent for the same quarter last year, and 54
percent in the third quarter of fiscal 2003. The decline in gross
margin was primarily due to a larger percentage of sales from lower
margin, bank hardware products.
Fiscal fourth quarter 2003 total costs and expenses were $2.3
million, or 134 percent of net sales, relatively unchanged from the
$2.3 million, or 61 percent of net sales, reported in the same quarter
last year. Sequentially, total costs and expenses decreased from $2.6
million, or 86 percent of net sales, in the third quarter of fiscal
2003.
Mitek reported a fiscal fourth quarter 2003 net loss of $(1.6)
million, or $(0.15) per basic and diluted share, compared with a net
loss of $(15,000), or breakeven per basic and diluted share, for the
same fiscal quarter of last year. The net loss for the third quarter
of fiscal 2003 was $(953,000), or $(0.09) per basic and diluted share.
For the twelve months ended September 30, 2003, net sales were
$11.6 million, a decrease of 11 percent from net sales of $13.1
million reported for fiscal 2002. Fiscal year 2003 net loss was $(2.5)
million, or $(0.22) per basic and diluted share, compared with a net
income of $397,000, or $0.04 per basic and diluted share, for fiscal
year 2002.
As of September 30, 2003, the Company had working capital of
approximately $2.3 million and stockholders' equity of $2.6 million.
The Company ended fiscal year 2003 with no bank borrowings and cash
and investments of $1.8 million, compared with $760,000 at September
30, 2002.
Commenting on the fourth quarter results, Mitek's President and
CEO James B. DeBello said, "Despite our aggressive sales efforts, many
customers we pursued during the quarter were reluctant to commit to
capital equipment purchases and chose to prolong their decision-making
due, we believe, to persistent economic uncertainties. As a result, we
experienced a revenue shortfall in the fourth quarter."
DeBello continued, "On a positive note, shortly following the end
of our fiscal year in October, the long-awaited Check Clearing for the
21st Century Act, or Check 21, was signed into law. A major
technological advancement in the banking industry, Check 21 is
expected to dramatically reduce bank operating costs by allowing banks
to substitute electronic check images for paper checks in the
clearance and settlement process. We believe this new regulation opens
up a number of sales opportunities for our solutions. We are currently
executing on a Check 21 implementation plan for our existing and
future bank customers.
"Building on our core check-imaging business, we believe an
additional catalyst to revenue growth is the expanding market
opportunity for our fraud protection solutions. With our award-winning
FraudProtect(TM) platform and several new products in development, we
believe that we have the best-in-industry solutions to help our bank
customers detect fraud and prevent losses. One of the most prevalent
problems facing banking institutions of all sizes is check fraud. In
2001, it is estimated that criminals in the United States attempted
over $4 billion of check fraud and that bank losses from these
attempts approached $700 million. We believe this market segment is
currently underserved, and as an innovator of check fraud solutions,
we see a large potential for our products.
"Fiscal 2003 was a challenging year, but we believe that our
targeting of the fraud protection market segment, as well as the steps
taken to strengthen our sales and marketing infrastructure, will
position us to regain sales momentum. We are committed to the
long-term success of Mitek Systems," concluded DeBello.
Conference Call and Webcast
Mitek Systems will host a conference call with a simultaneous
Webcast today at 11:00 a.m. Eastern (8:00 a.m. Pacific) to discuss the
Company's fourth quarter and fiscal year 2003 operating performance.
The conference call, featuring President and CEO James B. DeBello and
Chairman and CFO John M. Thornton, can be accessed live via the
Internet at www.miteksys.com or www.fulldisclosure.com. Please go to
either Web site at least fifteen minutes early to register, download,
and install any necessary audio software. For those who cannot listen
to the live broadcast, the Webcast replays will be available for 90
days, or an audio replay will be available through November 28, 2003,
by calling 888-266-2086 (703-925-2435 for international callers) and
entering the passcode 718525.
About Mitek Systems
Mitek Systems is a premier provider of check fraud protection
solutions for the banking industry and an established global supplier
of embedded software recognition engines. Mitek develops recognition
technology using advanced neural networking techniques and deploys
this expertise in fraud prevention, check, financial document, and
forms processing applications. These applications automatically
process over 8 billion documents per year for a variety of OEMs,
reseller partners, and end users. For more information about Mitek
Systems, contact us at 14145 Danielson Street, Suite B, Poway, CA
92064, 858-513-4600, or visit our Web site at www.miteksys.com.
Forward-Looking Statement Disclosure
With the exception of historical matters, the matters discussed in
this news release are forward-looking statements that involve risks
and uncertainty. Forward-looking statements include, but are not
limited to, statements relating to the development and pace of sales
of the Company's products, expected trends and growth in the Company's
results of operations, projections concerning the Company's available
cash flow and liquidity, anticipated penetration in new and existing
markets for the Company's products and the size of such markets,
anticipated acceptance of the Company's products by existing and new
customers, the ability of the Company to achieve or sustain any growth
in sales and revenue, and the increase in sales representatives and
other personnel. The Company's actual results could differ from such
forward-looking statements. There can be no assurance that the Company
will achieve the results set forth herein. Mitek, Mitek Systems, and
FraudProtect are trademarks or registered trademarks of Mitek Systems,
Inc. All other product or company names may be trademarks or
registered trademarks of their respective holders.
Mitek Systems, Inc.
Statements of Operations
(Unaudited)
THREE MONTHS ENDED TWELVE MONTHS ENDED
September 30, September 30,
2003 2002 2003 2002
------------------------ -------------------------
NET SALES $1,723,000 $3,852,000 $11,594,000 $13,083,000
COST OF GOODS SOLD 1,042,000 1,530,000 4,541,000 3,751,000
------------ ----------- ------------ ------------
GROSS MARGIN 681,000 2,322,000 7,053,000 9,332,000
COSTS AND EXPENSES
Operations 403,000 575,000 1,694,000 1,872,000
Selling and
marketing 859,000 557,000 3,768,000 3,014,000
Research and
development 561,000 574,000 2,242,000 2,049,000
General and
administrative 493,000 637,000 1,848,000 2,010,000
------------ ----------- ------------ ------------
Total costs and
expenses 2,316,000 2,343,000 9,552,000 8,945,000
OPERATING INCOME
(LOSS) (1,635,000) (21,000) (2,499,000) 387,000
Interest and other
income (expense)
- net 10,000 6,000 18,000 10,000
------------ ----------- ------------ ------------
INCOME (LOSS)
BEFORE INCOME
TAXES (1,625,000) (15,000) (2,481,000) 397,000
PROVISION (BENEFIT)
FOR INCOME TAXES -- -- 10,000 --
------------ ----------- ------------ ------------
NET INCOME (LOSS) $(1,625,000) $(15,000) $(2,491,000) $397,000
============ =========== ============ ============
NET INCOME (LOSS)
PER SHARE - BASIC
AND DILUTED $(0.15) $(0.00) $(0.22) $0.04
============ =========== ============ ============
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES OUTSTANDING
- BASIC 11,183,656 11,138,455 11,154,489 11,132,867
============ =========== ============ ============
WEIGHTED AVERAGE
NUMBER OF COMMON
SHARES AND COMMON
SHARE EQUIVALENTS
OUTSTANDING -
DILUTED 11,183,656 11,138,455 11,154,489 11,327,163
============ =========== ============ ============
Mitek Systems, Inc.
Condensed Balance Sheets
(Unaudited)
September 30, September 30,
2003 2002
---------------- ---------------
ASSETS
Current assets $5,084,000 $7,381,000
Property and equipment - net 321,000 380,000
Other assets 275,000 470,000
---------------- ---------------
TOTAL ASSETS $5,680,000 $8,231,000
================ ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $2,738,000 $2,738,000
Long-term liabilities 369,000 466,000
---------------- ---------------
Total liabilities 3,107,000 3,204,000
---------------- ---------------
Stockholders' equity:
Common stock 11,000 11,000
Additional paid-in capital 9,328,000 9,290,000
Accumulated deficit (6,766,000) (4,274,000)
---------------- ---------------
Total stockholders' equity 2,573,000 5,027,000
---------------- ---------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $5,680,000 $8,231,000
================ ===============
CONTACT: Mitek Systems, Inc.
John M. Thornton, 858-513-4600
or
Financial Relations Board
Jocelyn Hunter, 415-248-3433 (Investor Contact)
Linda Chien, 310-407-6547 (General Information)