Mitek Reports Third Quarter Fiscal 2013 Financial Results

Mitek Reports Third Quarter Fiscal 2013 Financial Results

  oMobile Deposit^® surpassed the 1,000 bank milestone; licensed financial
    institutions grow to 1,059
  o15^th and 16^th patents recently issued by USPTO for Signature
    Verification and Mobile Balance Transfer™
  oIncreased cash, cash equivalents and investments to $29.5 million

SAN DIEGO, July 25, 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 third quarter of fiscal 2013,
which ended June 30, 2013.

"With over 1,000 banks now licensing our technology, Mobile Deposit is a
springboard for adoption of all of our mobile imaging solutions, resulting in
this quarter's growth," said James B. DeBello, president and CEO of Mitek.
"Our Mobile Imaging solutions are becoming pivotal for companies that want to
advance their existing customer relationships and attract their next
generation of consumers. Mitek continues to invest in our core science that
turns complex Mobile Imaging technology into a pleasing consumer experience."

Total revenue for the third quarter of fiscal 2013 was $3.9 million compared
to total revenue of $3.2 million in the third quarter of fiscal 2012, driven
by revenue from Mobile Deposit, Mobile Photo Bill Pay, and Mobile Photo
Quoting.

GAAP net loss for the third quarter of fiscal 2013 was $2.1 million, or $0.08
per share, compared to GAAP net loss of $2.0 million, or $0.08 per share, in
the third quarter of fiscal 2012. Non-GAAP net loss for the third quarter of
fiscal 2013 was $1.4 million, or $0.05 per share, compared to non-GAAP net
loss of $1.2 million, or $0.05 per diluted share, in the third quarter of
fiscal 2012.

Total operating expenses for the third quarter of fiscal 2013 were in line
with company guidance at $5.9 million compared to $5.2 million for the third
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.

Highlights

  oHired Scott Carter, an executive with over 20 years of experience in
    payments, financial services and related industries, to Mitek's
    newly-created Chief Marketing Officer position
  o15^th and 16^th patents recently issued by USPTO for Signature
    Verification/Fraud Detection and Mobile Balance Transfer™; 22 are patents
    pending
  oBBVA Compass, a top 25 U.S. retail bank, launched Mobile Photo Bill Pay™
  oSan Diego County Credit Union, a top 20 U.S. credit union, launched Mobile
    Balance Transfer™
  oLaunched MiSnap™ SDK, an innovative, touch-free automatic image capture
    technology that enhances the user experience across all products

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 U.S. and Canada can access the call by dialing
    1-877-269-7756.
  *International parties can access the call by dialing 1-201-689-7817.

Mitek will offer a live webcast of the conference call, which will also
include forward-looking information. The live webcast will be accessible on
the "Investor Relations" section of the Company's website at
http://www.miteksystems.com. 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
1-877-660-6853 and enter conference code 418120. International parties should
call 1-201-612-7415 and enter conference code 418120.

About Mitek

Headquartered in San Diego, CA., Mitek (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

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, 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

                                                  June 30,      September 30,
                                                  2013          2012
                                                  (Unaudited)   
ASSETS                                                          
Current assets:                                                 
Cash and cash equivalents                          $22,945,632 $6,702,090
Short-term investments                             6,515,582    5,819,537
Accounts receivable, net                           572,382      1,097,311
Other current assets                               608,147      485,165
Total current assets                               30,641,743   14,104,103
                                                               
Long-term investments                              --           2,085,690
Property and equipment, net                        1,560,156    491,079
Other non-current assets                           42,049       42,049
Total assets                                       $32,243,948 $16,722,921
                                                               
LIABILITIES AND STOCKHOLDERS' EQUITY                            
Current liabilities:                                            
Accounts payable                                   $2,336,825  $711,950
Accrued payroll and related taxes                  1,238,682    726,965
Deferred revenue, current portion                  2,686,083    1,632,085
Other current liabilities                          179,865      31,656
Total current liabilities                          6,441,455    3,102,656
                                                               
Other non-current liabilities                      1,379,081    63,586
Total liabilities                                  7,820,536    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 authorized, respectively;        29,916       25,995
29,916,403 and 25,995,216 issued and outstanding,
respectively
Additional paid-in capital                         53,661,424   36,990,691
Accumulated other comprehensive loss               (3,561)      (616)
Accumulated deficit                                (29,264,367) (23,459,391)
Total stockholders' equity                         24,423,412   13,556,679
Total liabilities and stockholders' equity         $32,243,948 $16,722,921
                                                               

                                                             
MITEK SYSTEMS, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
                                                               
                      Three Months Ended          Nine Months Ended
                      June 30,                    June 30,
                      2013          2012          2013          2012
                                                             
Revenue                                                       
Software              $ 2,694,220  $ 2,463,916  $ 7,439,804  $ 5,861,391
Maintenance and        1,187,807    697,813      2,976,150    2,011,560
professional services
Total revenue          3,882,027    3,161,729    10,415,954   7,872,951
                                                             
Operating costs and                                           
expenses
Cost of                240,053      170,411      586,915      427,599
revenue-software
Cost of
revenue-maintenance    229,392      188,809      639,617      543,627
and professional
services
Selling and marketing  1,461,897    1,078,603    4,143,346    2,641,569
Research and           1,976,020    2,117,174    5,020,127    5,026,959
development
General and            2,032,316    1,626,133    5,849,052    4,089,315
administrative
Total costs and        5,939,678    5,181,130    16,239,057   12,729,069
expenses
                                                             
Operating loss         (2,057,651)  (2,019,401)  (5,823,103)  (4,856,118)
                                                             
Other income                                                  
(expense), net
Interest and other     (37,214)     (62,267)     (110,119)    (191,970)
expense, net
Interest income        42,806       72,781       129,046      218,919
Total other income     5,592        10,514       18,927       26,949
(expense), net
                                                             
Loss before income     (2,052,059)  (2,008,887)  (5,804,176)  (4,829,169)
taxes
                                                             
Provision for income   --           --           (800)        (800)
taxes
                                                             
Net loss               $(2,052,059) $(2,008,887) $(5,804,976) $(4,829,969)
                                                             
Net loss per share -   $(0.08)     $(0.08)     $(0.22)     $(0.19)
basic and diluted
                                                             
Shares used in
calculating net loss   27,109,787   25,613,698   26,534,357   24,980,253
per share - basic and
diluted
                                                             

                                                             
MITEK SYSTEMS, INC.
NON-GAAP NET LOSS RECONCILIATION
(Unaudited)
                                                             
                      For the three months ended  For the nine months ended
                      June 30,                    June 30,
                      2013          2012          2013          2012
Loss before income     $(2,052,059) $(2,008,887) $(5,804,176) $(4,829,169)
taxes
                                                             
Add back:                                                     
Stock compensation     685,633      830,986      2,045,767    1,983,870
expense
                                                             
Non-GAAP loss before   (1,366,426)  (1,177,901)  (3,758,409)  (2,845,299)
income taxes
Non-GAAP provision for --          --          (800)        (800)
income taxes
                                                             
Non-GAAP net loss      $(1,366,426) $(1,177,901) $(3,759,209) $(2,846,099)
                                                             
Non-GAAP net loss per
share - basic and      $(0.05)     $(0.05)     $(0.14)     $(0.11)
diluted
                                                             
Shares used in
calculating non-GAAP   27,109,787   25,613,698   26,534,357   24,980,253
net loss per share -
basic and diluted
                                                             

Connect with us on Facebook: http://www.facebook.com/MitekSystems

Follow us on Twitter: @miteksystems

See us on YouTube: http://www.youtube.com/miteksystems

Read our latest blog post: http://www.miteksystems.com/blog

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

company logo
 
Press spacebar to pause and continue. Press esc to stop.