Mitek Reports Fourth Quarter and Fiscal 2013 Financial Results

Mitek Reports Fourth Quarter and Fiscal 2013 Financial Results

  *Revenue up 63% year-over-year for fiscal 2013, bolstered by strong fourth
    quarter performance
  *Mobile Deposit^® licensed financial institutions grew to 1,420 banks
    signed, 805 banks live
  *Mobile Photo Account Opening™ won Best of Show at Finovate Fall 2013
  *Ended fiscal 2013 with cash, cash equivalents and investments of $29
    million
  *17^th patent recently issued by USPTO for Mobile Photo Bill Pay^®; 22
    patents are pending

SAN DIEGO, Nov. 7, 2013 (GLOBE NEWSWIRE) -- Mitek Systems, Inc. (Nasdaq:MITK)
(www.miteksystems.com), the leading innovator in mobile imaging for financial
transactions, today announced its financial results for the fourth quarter and
fiscal 2013, which ended September 30, 2013.

"During fiscal 2013, we increased revenue 63% and made significant progress in
establishing our multi-product suite of Mobile Imaging solutions for bill
payment, account opening and credit card balance transfers. These solutions
accompany our flagship Mobile Deposit offering which has been used by over 20
million consumers according to Celent Research estimates," said James B.
DeBello, president and CEO of Mitek. "An increasing number of companies are
deploying several of Mitek's Mobile Imaging solutions to provide a superior
and consistent consumer experience as they align their product offerings with
the modern, mobile customer. Today, Mitek has a more diversified product and
patent portfolio with momentum going into 2014."

Total revenue for the fourth quarter of fiscal 2013 was $4.4 million compared
to total revenue of $1.2 million in the fourth quarter of fiscal 2012, driven
by revenue from Mobile Deposit, Mobile Photo Bill Pay, and Mobile Photo
Quoting.

GAAP net loss for the fourth quarter of fiscal 2013 was $1.5 million, or $0.05
per share, compared to GAAP net loss of $3.0 million, or $0.12 per share, in
the fourth quarter of fiscal 2012. Non-GAAP net loss for the fourth quarter of
fiscal 2013 was $0.7 million, or $0.02 per share, compared to non-GAAP net
loss of $2.4 million, or $0.09 per share, in the fourth quarter of fiscal
2012.

Total operating expenses for the fourth quarter of fiscal 2013 were $5.9
million compared to $4.2 million for the fourth quarter of fiscal 2012. Total
operating expenses for fiscal 2013 were $22.1 million compared to $17.0
million in fiscal 2012. The year-over-year increase in total operating
expenses was primarily driven by higher investments in personnel to grow the
business as well as litigation expense related to protecting the Company's
intellectual property.

The Company ended fiscal 2013 with cash, cash equivalents and investments of
$29.0 million, compared to $14.6 million at the end of fiscal 2012.

Highlights

  oAnnounced Mobile Photo Account Opening™ for employee-assisted or customer
    self-service
  oMobile Photo Bill Pay^® licensed financial institutions grew to 14 banks
    signed with 9 banks live
  oCollaborated with US Bank to launch Mobile Photo Balance Transfer™

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 423311. International parties should
call 1-201-612-7415 and enter conference code 423311.

About Mitek

Headquartered in San Diego, CA, Mitek (Nasdaq:MITK) is the leading innovator
of mobile imaging for financial transactions. Mitek's patented mobile photo
technology automatically captures images of personal and financial documents
and then extracts relevant data. This enables consumers to use the Camera as a
Keyboard™ to reduce friction for mobile check deposit, account opening, bill
payment, insurance quoting, and many other use cases. This innovative
technology is licensed by more than 1,000 organizations and used by tens of
millions of consumers enabling increased customer acquisition, retention and
operational efficiency. 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

                                                  September 30, September 30,
                                                  2013          2012
                                                  (Unaudited)   
ASSETS                                                          
Current assets:                                                 
Cash and cash equivalents                          $23,294,456 $6,702,090
Short-term investments                             5,730,872    5,819,537
Accounts receivable, net                           1,494,627    1,097,311
Other current assets                               661,706      485,165
Total current assets                               31,181,661   14,104,103
                                                               
Long-term investments                              --           2,085,690
Property and equipment, net                        1,629,664    491,079
Other non-current assets                           42,049       42,049
Total assets                                       $32,853,374 $16,722,921
                                                               
LIABILITIES AND STOCKHOLDERS' EQUITY                            
Current liabilities:                                            
Accounts payable                                   $1,875,909  $711,950
Accrued payroll and related taxes                  1,455,487    726,965
Deferred revenue, current portion                  2,335,532    1,632,085
Other current liabilities                          151,536      31,656
Total current liabilities                          5,818,464    3,102,656
                                                               
Other non-current liabilities                      1,306,168    63,586
Total liabilities                                  7,124,632    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;        30,361       25,995
30,361,442 and 25,995,216 issued and outstanding,
respectively
Additional paid-in capital                         56,431,640   36,990,691
Accumulated other comprehensive loss               1,838        (616)
Accumulated deficit                                (30,735,097) (23,459,391)
Total stockholders' equity                         25,728,742   13,556,679
Total liabilities and stockholders' equity         $32,853,374 $16,722,921


MITEK SYSTEMS, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
                                                             
                   Three Months Ended            Twelve Months Ended
                   September 30,                 September 30,
                   2013           2012           2013           2012
                                                             
Revenue                                                       
Software           $3,276,701   $524,970     $10,716,505  $6,386,361
Maintenance and
professional        1,110,530     694,763       4,086,680     2,706,322
services
Total revenue       4,387,231     1,219,733     14,803,185    9,092,683
                                                             
Operating costs and                                           
expenses
Cost of             157,927       112,722       744,842       540,321
revenue-software
Cost of
revenue-maintenance 219,140       179,973       858,757       723,599
and professional
services
Selling and         1,709,101     808,484       5,852,448     3,450,054
marketing
Research and        1,773,286     1,637,072     6,793,412     6,664,030
development
General and         2,004,212     1,506,528     7,853,264     5,595,843
administrative
Total costs and     5,863,666     4,244,779     22,102,723    16,973,847
expenses
                                                             
Operating loss      (1,476,435)   (3,025,046)   (7,299,538)   (7,881,164)
                                                             
Other income                                                  
(expense), net
Interest and other  (41,854)      (48,014)      (151,973)     (239,984)
expense, net
Interest income     47,835        58,225        176,881       277,144
Total other income  5,981         10,211        24,908        37,160
(expense), net
                                                             
Loss before income  (1,470,454)   (3,014,835)   (7,274,630)   (7,844,004)
taxes
                                                             
Income tax          (276)         4,808         (1,076)       4,008
(provision) benefit
                                                             
Net loss            $(1,470,730) $(3,010,027) $(7,275,706) $(7,839,996)
                                                             
Net loss per share  $(0.05)      $(0.12)      $(0.26)      $(0.31)
- basic and diluted
                                                             
Shares used in
calculating net     30,336,347    25,937,801    27,492,670    25,124,179
loss per share -
basic and diluted


MITEK SYSTEMS, INC.
NON-GAAP NET LOSS RECONCILIATION
(Unaudited)
                                                            
                  Three Months Ended            Twelve Months Ended
                  September 30,                 September 30,
                  2013           2012           2013           2012
Loss before income $ (1,470,454) $ (3,014,835) $ (7,274,630) $ (7,844,004)
taxes
                                                            
Add back:                                                    
Stock compensation 746,095       615,988       2,791,862     2,599,858
expense
                                                            
Non-GAAP loss
before income      (724,359)     (2,398,847)   (4,482,768)   (5,244,146)
taxes
Non-GAAP income
tax (provision)    (276)         4,808         (1,076)       4,008
benefit
                                                            
Non-GAAP net loss  $(724,635)   $ (2,394,039) $ (4,483,844) $ (5,240,138)
                                                            
Non-GAAP net loss
per share - basic  $(0.02)      $(0.09)      $(0.16)      $(0.21)
and diluted
                                                            
Shares used in
calculating
non-GAAP net loss  30,336,347    25,937,801    27,492,670    25,124,179
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.