Mitek Reports First Quarter Fiscal 2013 Financial Results

Mitek Reports First Quarter Fiscal 2013 Financial Results

  * Signed 708 financial institutions to date with 318 customers live as of
    Dec. 31, 2012
  * Entered into strategic partnership with US Bank for commercial launch of
    Mobile Photo Bill Pay^™
  * Increased Mobile Deposit^® transaction usage over 25% for third
    consecutive quarter
  * Sixth mobile imaging patent issued by USPTO

SAN DIEGO, Jan. 31, 2013 (GLOBE NEWSWIRE) --  Mitek Systems, Inc.
(Nasdaq:MITK) (www.miteksystems.com), a leading mobile imaging software
solutions provider, today announced its financial results for the first
quarter of fiscal 2013, which ended December 31, 2012.

"We had a strong start to fiscal 2013 with record bookings for our Mobile
Photo Bill Pay product and strong bookings for Mobile Deposit and our entire
suite of mobile imaging products. We continue to see strong market demand for
our flagship Mobile Deposit product with over 25% increase in transaction
usage for the third consecutive quarter," said James B. DeBello, president and
CEO of Mitek. "With 708 banks signed to date, including the nation's top
retail banks, our mobile imaging market presence continues to grow. During the
first quarter of fiscal 2013 we signed 144 banks and saw a record number of
Mobile Deposit customer launches, which we believe is a leading indicator of
our long-term growth. Importantly, we signed US Bank as our first major
customer for Mobile Photo Bill Pay, and we look forward to their commercial
launch early this year. We also continued to build our IP portfolio with the
issuance of our sixth mobile imaging patent issued."

Total revenue for the first quarter of fiscal 2013 was $3.3 million compared
to total revenue of $3.5 million in the first quarter of fiscal 2012. During
the first quarter of fiscal 2013, the Company signed a number of large
software licenses for its Mobile Deposit, Mobile Photo Bill Pay and other
mobile imaging products; however, a portion of the revenue from these licenses
is recurring in nature and will be recognized in future periods.

GAAP net loss for the first quarter of fiscal 2013 was $1.4 million, or $0.05
per share, compared to GAAP net income of $26,000, or breakeven on a per share
basis, in the first quarter of 2012.

Non-GAAP net loss for the first quarter of 2013 was $700,000, or $0.03 per
share, compared to non-GAAP net income of $453,000, or $0.02 per diluted
share, in the first quarter of fiscal 2012.

Total operating expenses for the first quarter of fiscal 2013 were $4.7
million compared to $3.5 million for the first quarter of fiscal 2012.  The
increase in total operating expenses was primarily driven by higher
investments in personnel to grow the business, sales and marketing expenses
and R&D associated with product development.

The Company ended the first quarter of fiscal 2013 with cash, cash equivalents
and investments of $15.1 million, compared to $14.6 million at the end of
fiscal 2012.

Highlights

  * Signed a strategic mobile imaging partnership with US Bank to deliver the
    first Mobile Photo Bill Pay product to US Bank customers in early 2013.
  * Sixth mobile imaging patent issued to the Company by the USPTO, bringing
    the total number of issued patents to 13 with 14 additional patents
    pending.
  * Announced more than 20 prepaid card initiatives from some of the most
    innovative banks, large retailers and wireless carriers by making the
    process of loading prepaid cards simple and easy with Mitek's intelligent
    mobile imaging technology.

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
    1-866-730-5767, using conference code 79007332.
  * International parties can access the call by dialing 1-857-350-1591, using
    conference code 79007332.

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, and will be archived 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
31374365. International parties should call 1-617-801-6888 and enter
conference code 31374365.

About Mitek

Headquartered in San Diego, Calif., Mitek Systems (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
http://www.miteksystems.com. MITK-F

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, 2012 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)
income and non-GAAP net (loss) income 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.

© 2013 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.                                                         

MITEK SYSTEMS, INC.
BALANCE SHEETS
                                                                  
                                                   December 31,  September 30,
                                                   2012          2012
ASSETS                                             (Unaudited)    
Current assets:                                                   
Cash and cash equivalents                           $ 9,592,950   $ 6,702,090
Short-term investments                              4,663,159     5,819,537
Accounts receivable, net                            1,624,225     1,097,311
Other current assets                                431,239       485,165
                                                                  
Total current assets                                16,311,573    14,104,103
                                                                  
Long-term investments                               828,000       2,085,690
Property and equipment, net                         757,584       491,079
Other non-current assets                            42,049        42,049
                                                                  
Total assets                                        $ 17,939,206  $ 16,722,921
                                                                  
LIABILITIES AND STOCKHOLDERS' EQUITY                              
Current liabilities:                                              
Accounts payable                                    $ 1,155,898   $ 711,950
Accrued payroll and related taxes                   871,557       726,965
Deferred revenue                                    2,439,581     1,632,085
Other current liabilities                           55,408        31,656
                                                                  
Total current liabilities                           4,522,444     3,102,656
                                                                  
Other non-current liabilities                       521,576       63,586
                                                                  
Total liabilities                                   5,044,020     3,166,242
                                                                  
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, 26,041,283 and 25,995,216 issued and   26,041        25,995
outstanding, respectively
Additional paid-in capital                          37,684,416    36,990,691
Accumulated other comprehensive income              3,762         (616)
Accumulated deficit                                 (24,819,033)  (23,459,391)
                                                                  
Total stockholders' equity                          12,895,186    13,556,679
                                                                  
Total liabilities and stockholders' equity          $ 17,939,206  $ 16,722,921

 
MITEK SYSTEMS, INC.
STATEMENTS OF OPERATIONS
 (Unaudited)
                                                                   
                                                   For the three months ended
                                                   December 31,
                                                   2012           2011
                                                                   
Revenue                                                            
Software                                            $ 2,570,706    $ 2,892,026
Maintenance and professional services               738,958        627,458
                                                                   
Total revenue                                       3,309,664      3,519,484
Operating costs and expenses                                       
Cost of revenue-software                            192,606        147,660
Cost of revenue-maintenance and professional        147,390        154,609
services
Selling and marketing                               1,264,052      850,928
Research and development                            1,402,753      1,179,106
General and administrative                          1,668,929      1,163,228
                                                                   
Total operating costs and expenses                  4,675,730      3,495,531
                                                                   
Operating (loss) income                             (1,366,066)    23,953
Other income (expense), net                                        
Interest and other expense, net                     (43,693)       (67,065)
Interest income                                     50,117         74,024
                                                                   
Total other income (expense), net                   6,424          6,959
                                                                   
Income (loss) before income taxes                   (1,359,642)    30,912
Provision for income taxes                          --             (4,637)
                                                                   
Net (loss) income                                   $ (1,359,642)  $ 26,275
                                                                   
Net (loss) income per share -- basic                $ (0.05)       $ 0.00
Net (loss) income per share -- diluted              $ (0.05)       $ 0.00
                                                                   
Shares used in calculating basic net (loss) income 26,024,288     24,390,215
per share
Shares used in calculating diluted net (loss)       26,024,288     27,817,545
income per share

 
MITEK SYSTEMS, INC.
NON-GAAP NET INCOME RECONCILIATION
(Unaudited)
                                                                   
                                                   For the three months ended
                                                   December 31,   December 31,
                                                   2012           2011
                                                                   
Income (loss) before income taxes                   $ (1,359,642)  $ 30,912
                                                                   
Add back:                                                          
Stock compensation expense                          656,534        501,697
                                                                   
Non-GAAP income (loss) before income taxes          (703,108)      532,609
Non-GAAP provision for income taxes                 --             79,891
                                                                   
Non-GAAP net (loss) income                          $ (703,108)    $ 452,718
                                                                   
Non-GAAP net (loss) income per share - diluted      $ (0.03)       $ 0.02
                                                                   
Shares used in computing diluted Non-GAAP net       26,024,288     27,817,545
(loss) income per share
                                                                   

CONTACT: Julie Cunningham
         Vice President, Investor Relations & Corporate Communications
         Mitek
         858.309.1780
         ir@miteksystems.com

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