Mitek Reports Second Quarter Fiscal 2013 Financial Results

Mitek Reports Second Quarter Fiscal 2013 Financial Results

  *889 financial institutions have signed to deploy Mobile Deposit^® with 445
    live as of March 31, 2013
  *Increased Mobile Deposit^® transaction usage over 25% for fourth
    consecutive quarter
  *Seventh mobile imaging patent issued by USPTO for Mobile Photo Bill Pay
  *Collaborated with U.S. Bank to launch Mobile Photo Bill Pay
  *Mobile Deposit® solution won top award for "Overall Most Innovative" at
    annual Monarch Awards

SAN DIEGO, May 7, 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 second quarter of fiscal 2013,
which ended March 31, 2013.

"We had a strong quarter which can be attributed to the widespread adoption of
our mobile imaging solutions, particularly Mobile Deposit and Mobile Photo
Bill Pay. We believe Mobile Deposit has become an expected capability, and
more banks than ever are utilizing the technology to retain customers and
attract new business. Meanwhile, U.S. Bank was the first nation-wide bank to
launch Mobile Photo Bill Pay" said James B. DeBello, president and CEO of
Mitek. "We are confident in our momentum moving forward, and are excited to
partner with a variety of institutions interested in Mitek's technology."

Total revenue for the second quarter of fiscal 2013 was $3.2 million compared
to total revenue of $1.2 million in the second quarter of fiscal 2012, driven
primarily by growth in software license revenue.

GAAP net loss for the second quarter of fiscal 2013 was $2.4 million, or $0.09
per share, compared to GAAP net loss of $2.8 million, or $0.11 on a per share
basis, in the second quarter of fiscal 2012. Non-GAAP net loss for the second
quarter of fiscal 2013 was $1.7 million, or $0.06 per share, compared to
non-GAAP net loss of $2.2 million, or $0.09 per diluted share, in the second
quarter of fiscal 2012.

Total operating expenses for the second quarter of fiscal 2013 were $5.6
million compared to $4.1 million for the second quarter of fiscal 2012. The
increase in total operating expenses was primarily driven by higher
investments in personnel to grow the business as well as litigation-related
expense.

The Company ended the second quarter of fiscal 2013 with cash, cash
equivalents and investments of $15.3 million, compared to $14.6 million at
September 30, 2012.

Highlights

  *U.S. Bank, a top 10 financial institution, successfully launched Mitek's
    Mobile Photo Bill Pay Solution
  *Seventh mobile imaging patent issued to the Company by the USPTO and the
    first patent issued for Mobile Photo Bill Pay, bringing the total number
    of issued patents to 14, with 25 patents pending
  *Mitek received the "Overall Most Innovative" award at Barlow Research's
    annual Monarch Awards, distinguishing Mobile Deposit^® as a B2B innovation
    within the financial services industry

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
    1-866-318-8618, using conference code 38746037.
  *International parties can access the call by dialing 617-399-5137, using
    conference code 38746037.

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
http://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 90898050. International parties should call 1-617-801-6888 and
enter conference code 90898050.

About Mitek

Headquartered in San Diego, CA., 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 Systems, 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, 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
                                                          
                                            March 31, 2013 September 30, 2012
                                            (Unaudited)    
ASSETS                                                     
Current assets:                                            
Cash and cash equivalents                    $9,991,249   $6,702,090
Short-term investments                       4,901,326     5,819,537
Accounts receivable, net                     793,699       1,097,311
Other current assets                         720,432       485,165
Total current assets                         16,406,706    14,104,103
                                                          
Long-term investments                        418,016       2,085,690
Property and equipment, net                  1,122,593     491,079
Other non-current assets                     42,049        42,049
Total assets                                 $ 17,989,364  $16,722,921
                                                          
LIABILITIES AND STOCKHOLDERS' EQUITY                       
Current liabilities:                                       
Accounts payable                             $1,776,094   $711,950
Accrued payroll and related taxes            922,668       726,965
Deferred revenue                             2,436,997     1,632,085
Other current liabilities                    122,852       31,656
Total current liabilities                    5,258,611     3,102,656
                                                          
Other non-current liabilities                818,837       63,586
Total liabilities                            6,077,448     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, 60,000,000
and 40,000,000 shares, respectively,         27,044        25,995
27,044,039 and 25,995,216 issued and
outstanding, respectively
Additional paid-in capital                   39,095,260    36,990,691
Accumulated other comprehensive income       1,920         (616)
(loss)
Accumulated deficit                          (27,212,308)  (23,459,391)
Total stockholders' equity                   11,911,916    13,556,679
Total liabilities and stockholders' equity   $ 17,989,364  $16,722,921


MITEK SYSTEMS, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
                                                             
                                                             
                   Three Months Ended           Six Months Ended
                    March 31,                     March 31,
                   2013           2012           2013           2012
                                                             
Revenue                                                       
Software           $2,174,878   $505,448     $4,745,584   $3,397,474
Maintenance and
professional        1,049,384     686,289       1,788,343     1,313,747
services
Total revenue       3,224,262     1,191,737     6,533,927     4,711,221
                                                             
Operating costs and                                           
expenses
Cost of             154,256       109,528       346,862       257,187
revenue-software
Cost of
revenue-maintenance 262,836       200,209       410,226       354,818
and professional
services
Selling and         1,417,397     712,037       2,681,449     1,562,966
marketing
Research and        1,641,353     1,730,679     3,044,107     2,909,785
development
General and         2,147,806     1,299,953     3,816,735     2,463,182
administrative
Total costs and     5,623,648     4,052,406     10,299,379    7,547,938
expenses
                                                             
Operating loss      (2,399,386)   (2,860,669)   (3,765,452)   (2,836,717)
                                                             
Other income                                                  
(expense), net
Interest and other  (29,211)      (62,638)      (72,904)      (129,703)
expense, net
Interest income     36,122        72,114        86,239        146,138
Total other income  6,911         9,476         13,335        16,435
(expense), net
                                                             
Loss before income  (2,392,475)   (2,851,193)   (3,752,117)   (2,820,282)
taxes
                                                             
Provision for       (800)         3,837         (800)         (800)
income taxes
                                                             
Net loss            $(2,393,275) $(2,847,356) $(3,752,917) $(2,821,082)
                                                             
Net loss per share  $(0.09)      $(0.11)      $(0.14)      $(0.11)
- basic and diluted
                                                             
Shares used in
calculating net     26,473,938    25,013,284    26,246,642    24,700,047
loss per share -
basic and diluted


MITEK SYSTEMS, INC.
NON-GAAP NET LOSS RECONCILIATION
(unaudited)
                                                            
                   For the three months ended   For the six months ended
                    March 31,                    March 31,
                   2013          2012           2013           2012
Loss before income  $(2,392,475) $(2,851,193) $(3,752,117) $(2,820,282)
taxes
                                                            
Add back:                                                    
Stock compensation  703,599      651,187       1,360,133     1,152,884
expense
                                                            
Non-GAAP loss       (1,688,876)  (2,200,006)   (2,391,984)   (1,667,398)
before income taxes
Non-GAAP benefit
(provision) for     (800)        3,837         (800)         (800)
income taxes
                                                            
Non-GAAP net loss   $(1,689,676) $(2,196,169) $(2,392,784) $(1,668,198)
                                                            
Non-GAAP net loss
per share - basic   $(0.06)     $(0.09)      $(0.09)      $(0.07)
and diluted
                                                            
Shares used in
calculating
non-GAAP net loss   26,473,938   25,013,284    26,246,642    24,700,047
per share - basic
and diluted


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CONTACT: Mitek Contact:
         Peter Salkowski
         Managing Director, The Blueshirt Group
         ir@miteksystems.com
         858-309-1780