Mitek Reports Fourth Quarter and Fiscal 2012 Financial Results

Mitek Reports Fourth Quarter and Fiscal 2012 Financial Results

  *Signed 564 financial institutions to date with 205 customers live as of
    Sept. 30, 2012
  *Mobile Deposit transaction usage increased more than 25% over the prior

SAN DIEGO, Nov. 7, 2012 (GLOBE NEWSWIRE) -- Mitek Systems, Inc. (Nasdaq:MITK)
(, a leading mobile imaging software solutions provider,
today announced financial results for the fourth quarter and full fiscal year
2012, which ended September 30, 2012.

                                     Q4 FY 2012 Q4 FY 2011 FY 2012 FY 2011
Revenue                               $1.2M      $3.0M      $9.1M   $10.3M
GAAP Net Loss                         ($3.0M)    ($0.2M)    ($7.8M) ($0.1M)
GAAP Net Loss Per Share               ($0.12)    ($0.01)    ($0.31) ($0.01)
Non-GAAP Net Income (Loss)*           ($2.4M)    $0.2M      ($5.2M) $1.6M
Non-GAAP Net Income (Loss) Per Share* ($0.09)    $0.01      ($0.21) $0.06

*Please see GAAP to Non-GAAP reconciliation at the end of this news release.

"During fiscal 2012, we made significant progress in laying the foundation for
Mitek's future growth, and we're focused on investing in our business and
executing on our strategy," said James B. DeBello, president and CEO of Mitek.
"We navigated a number of significant transitions during the year, including
the delayed launch of our second product, Mobile Photo Bill Pay. While we are
clearly disappointed that we did not meet our revenue goals for the year, we
are doing the work necessary to yield positive future results and position
Mitek for long term growth. We further strengthened our senior management team
with the addition of Mike Strange, CTO, and Mike Diamond, SVP of Sales,
andappointedindustry veterans to our board of directors and advisory board.
We made significant investments in new product development, which resulted in
a stronger Mobile Photo Bill Pay offering and culminated in our entering a
strategic relationship with a top ten retail bank for that product. We believe
continued investment in fiscal 2013 will enable Mitek to continue its market
leadership and capitalize on the growing adoption of our patented mobile
imaging solutions."

Total revenue for the fourth quarter of fiscal 2012 was $1.2 million compared
to total revenue of $3.0 million in the fourth quarter of fiscal 2011. Total
revenue for fiscal 2012 was $9.1 million compared to total revenue of $10.3
million in fiscal 2011. The year-over-year decrease in revenue was primarily
driven by signing fewer large software licenses.The Company expects continued
fluctuation in total revenue due to the timing of signing of software

Total operating expenses for the fourth quarter of 2012 were $4.2 million
compared to $3.3 million for the fourth quarter of 2011. Total operating
expenses for fiscal 2012 were $17.0 million compared to $10.0 million in
fiscal 2011. The year-over-year increase in total operating expenses was
primarily driven by R&D expenses associated with new product development,
increased sales and marketing expenses, non-cash stock compensation expense
and legal fees.

The Company ended fiscal 2012 with cash, cash equivalents and investments of
$14.6 million, compared to $16.3 million at the end of fiscal 2011.


  *Signed 392 financial institutions with 169 customers live during fiscal
    2012, including the nation's top retail banks
  *Appointed Bruce Hansen to the Company's board of directors
  *Named Jane J. Thompson and Jim Hale to the Company's advisory board
  *Enhanced the depth and breadth of the Company's R&D, Finance, Sales and
    Professional Services organizations by hiring Michael Strange, Russell
    Clark, and Michael Diamond.
  *Mitek technology enabled over $10 billion in mobile deposits as of May
  *Demonstrated mobile check cashing for underbanked consumers at Finovate
  *Announced mobile imaging solutions for insurance with Progressive


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:

  oParties in the United States and Canada can access the call by dialing
    1-866-543-6403, using conference code 45181581
  oInternational parties can access the call by dialing 1-617-213-8896, using
    conference code 45181581

Mitek will offer a live webcast of the conference call, which will also
include forward-looking information.The webcast will be accessible at: will be archived on the "Investor
Relations" section of the Company's website at for a
period of 30 days. 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
1-888-286-8010 and enter conference code 14521904.International parties
should call 1-617-801-6888 and enter conference code 14521904.

About Mitek

Headquartered in San Diego, Calif., Mitek Systems, Inc. (Nasdaq:MITK) is a
mobile imaging software solutions provider that allows users to remotely
deposit checks, pay their bills, get insurance quotes, and transfer credit
card balances by snapping a picture with their camera-equipped smartphones and
tablets instead of using the device keyboard. Mitek's technology increases
convenience for the consumer by eliminating the need to go to the bank branch
or automated teller machine, and dramatically reduces processing and customer
acquisition costs while increasing customer retention. With a strong patent
portfolio, Mitek is positioned as the leading innovator in mobile imaging
software and currently provides its solutions to Fortune 500 financial
services companies. For more information about Mitek, please visit

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, market opportunities beyond the financial services
market, expansion of product offerings, and the pursuit of partnerships in new
market segments 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, 2011 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 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

This news release contains non-GAAP financial measures for non-GAAP net (loss)
income and non-GAAP net (loss)income per share that exclude stock
compensation expense, non-cash interest expense on convertible debt and
amortization of capitalized debt issuance costs.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.

© 2012 Mitek Systems, Inc. All rights reserved. The Mitek Systems name and
logo and Mobile Deposit® are registered trademarks of Mitek Systems, Inc.
Other product or service names mentioned herein are the trademarks of their
respective owners. MITK-F

                                                 September 30, September 30,
                                                 2012           2011
Current assets:                                                 
Cash and cash equivalents                         $6,702,090   $5,655,716
Short-term investments                            5,819,537     10,187,638
Accounts receivable, net                          1,097,311     2,956,295
Other current assets                              485,165       317,382
Total current assets                              14,104,103    19,117,031
Long-term investments                             2,085,690     417,230
Property and equipment, net                       491,079       196,519
Other non-current assets                          42,049        120,903
Total assets                                      $16,722,921  $19,851,683
LIABILITIES AND STOCKHOLDERS' EQUITY                            
Current liabilities:                                            
Accounts payable                                  $711,950     $358,907
Accrued payroll and related taxes                 726,965       496,009
Deferred revenue                                  1,632,085     873,230
Other current liabilities                         31,656        45,185
Total current liabilities                         3,102,656     1,773,331
Other non-current liabilities                     63,586        23,061
Total liabilities                                 3,166,242     1,796,392
Stockholders' equity:                                           
Preferred stock, $0.001 par value, 1,000,000      --            --
shares authorized, none issued and outstanding
Common stock, $0.001 par value, 40,000,000 shares
authorized, 25,995,216 and 24,144,366 issued and  25,995        24,144
outstanding, respectively
Additional paid-in capital                        36,990,691    33,660,397
Accumulated other comprehensive income            (616)         (9,855)
Accumulated deficit                               (23,459,391)  (15,619,395)
Total stockholders' equity                        13,556,679    18,055,291
Total liabilities and stockholders' equity        $16,722,921  $19,851,683

                      Three Months Ended          Twelve Months Ended
                      September 30,               September 30,
                      2012           2011         2012           2011
Software              $524,970     $2,468,828 $6,386,361   $8,122,744
Maintenance and        694,763       571,311     2,706,322     2,143,231
professional services
Total revenue          1,219,733     3,040,139   9,092,683     10,265,975
Operating costs and                                            
Cost of                112,722       147,040     540,321       662,080
Cost of
revenue-maintenance    179,973       123,225     723,599       509,654
and professional
Selling and marketing  808,484       778,710     3,450,054     2,410,711
Research and           1,637,072     1,025,422   6,664,030     2,996,109
General and            1,506,528     1,189,014   5,595,843     3,431,023
Total operating costs  4,244,779     3,263,411   16,973,847    10,009,577
and expenses
Operating (loss)       (3,025,046)   (223,272)   (7,881,164)   256,398
Other income                                                   
(expense), net
Interest and other     (48,014)      (40,450)    (239,984)     (427,547)
expense, net
Interest income        58,225        44,342      277,144       48,584
Total other income     10,211        3,892       37,160        (378,963)
(expense), net
Loss before income     (3,014,835)   (219,380)   (7,844,004)   (122,565)
(Benefit from)
provision for income   (4,808)       --          (4,008)       2,492
Net loss               $(3,010,027) $(219,380) $(7,839,996) $(125,057)
Net loss per share -   $(0.12)      $(0.01)    $(0.31)      $(0.01)
basic and diluted
Shares used in
calculating net loss   25,937,801    24,053,769  25,124,179    21,506,508
per share - basic and

                      Three Months Ended          Twelve Months Ended
                      September 30,               September 30,
                      2012           2011         2012           2011
Loss before income     $(3,014,835) $(219,380) $(7,844,004) $(122,565)
Add back:                                                      
Stock compensation     615,988       379,891     2,599,858     1,271,238
Non-cash interest
expense on convertible --           --         --           384,124
Amortization of
capitalized debt       --           --         --           53,945
issuance costs
Non-GAAP (loss) income (2,398,847)   160,511     (5,244,146)   1,586,742
before income taxes
(Benefit from)
provision for income   (4,808)       --         (4,008)       2,492
Non-GAAP net (loss)    $(2,394,039) $160,511   $(5,240,138) $1,584,250
Non-GAAP net (loss)
income per share -     $(0.09)      $0.01      $(0.21)      $0.06
Shares used in
computing diluted      25,937,801    28,045,515  25,124,179    25,416,011
Non-GAAP net (loss)
income per share

Julie Cunningham
Vice President, Investor Relations & Corporate Communications
Mitek Systems

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