Mitek Reports Record Revenue and Profitability in Second Quarter of Fiscal 2017
28 April 2017 - 6:05AM
Mitek (NASDAQ:MITK) (www.miteksystems.com), a global leader in
mobile capture and identity verification software solutions, today
announced its financial results for the second quarter of fiscal
2017 ended March 31, 2017.
Fiscal Second Quarter Financial Highlights
- Record total revenue of $11.4 million, up 34% year over
year.
- SaaS revenue of $1.7 million, up 41% year over year.
- Record GAAP net income of $1.2 million, or $0.03 per diluted
share, up 109% year over year.
- Record Non-GAAP net income of $3.0 million, or $0.08 per
diluted share, up 23% year over year.
- Cash and investments totaled $39.9 million at March 31, 2017,
up $5.4 million, or 16% from the first fiscal quarter.
Commenting on the results, James DeBello, Chairman and
CEO of Mitek, said:
“We are pleased to report the best quarter in Mitek’s
history. Our record revenue and profits were driven by growth
from both our ID verification and industry leading mobile check
deposit products. Our ID solutions are playing a key role
globally in the digital transformation of financial services and
other companies who need to verify the identity of their customers
to meet regulatory requirements. We believe that our market
momentum, competitive advantages, global footprint and solid
balance sheet position us well for continued growth in this large
and growing market.”
Conference Call Information
Mitek management will host a conference call and live webcast
for analysts and investors today at 1:30 p.m. Pacific Time (4:30
p.m. Eastern Time) to discuss the Company's financial results.
To listen to the live conference call, parties in the United
States and Canada should dial 888-378-4353, access code 8540639.
International parties should call 719-457-2605 using access code
8540639. Please dial in approximately 15 minutes prior to the start
of the call.
A live and archived webcast of the conference call will be
accessible on the "Investor Relations" section of the Company's
website at www.miteksystems.com. To access the live webcast, please
log in 15 minutes prior to the start of the call to download and
install any necessary audio software.
About Mitek
Mitek (MITK) is a global leader in mobile capture and identity
verification software solutions. Mitek’s ID document verification
allows an enterprise to verify a user’s identity during a mobile
transaction, enabling financial institutions, payments companies
and other businesses operating in highly regulated markets to
transact business safely while increasing revenue from the mobile
channel. Mitek also reduces the friction in the mobile user
experience with advanced data prefill. These innovative mobile
solutions are embedded into the apps of approximately 5,600
organizations and used by tens of millions of consumers daily for
mobile check deposit, new account opening, insurance quoting and
more. Learn more at 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 and market
opportunities 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
implementation and launch of the Company’s products 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, 2016 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 income and non-GAAP net income per share that exclude
stock compensation expenses, intellectual property litigation costs
and acquisition-related costs and 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 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, which helps identify trends in the
Company's underlying business and provides a better understanding
of how management plans and measures the Company's underlying
business.
MITEK SYSTEMS, INC. |
CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
(amounts in thousands except share data) |
|
|
|
|
|
|
|
March 31, 2017 (Unaudited) |
|
September 30, 2016 |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and
cash equivalents |
|
$ |
12,959 |
|
|
$ |
9,010 |
|
Short-term investments |
|
23,051 |
|
|
24,863 |
|
Accounts
receivable, net |
|
5,104 |
|
|
4,949 |
|
Other
current assets |
|
1,130 |
|
|
1,485 |
|
Total
current assets |
|
42,244 |
|
|
40,307 |
|
Long-term
investments |
|
3,896 |
|
|
1,952 |
|
Property and equipment,
net |
|
474 |
|
|
440 |
|
Goodwill and intangible
assets |
|
5,088 |
|
|
5,646 |
|
Other non-current
assets |
|
62 |
|
|
40 |
|
Total assets |
|
$ |
51,764 |
|
|
$ |
48,385 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable |
|
$ |
1,820 |
|
|
$ |
1,318 |
|
Accrued
payroll and related taxes |
|
2,370 |
|
|
3,263 |
|
Deferred
revenue, current portion |
|
3,677 |
|
|
3,391 |
|
Other
current liabilities |
|
348 |
|
|
355 |
|
Total
current liabilities |
|
8,215 |
|
|
8,327 |
|
Deferred revenue,
non-current portion |
|
51 |
|
|
259 |
|
Other non-current
liabilities |
|
686 |
|
|
314 |
|
Total liabilities |
|
8,952 |
|
|
8,900 |
|
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 shares authorized, 33,324,328
and 32,781,704 issued and outstanding, as of March 31, 2017 and
September 30, 2016, respectively |
|
33 |
|
|
33 |
|
Additional paid-in capital |
|
74,067 |
|
|
71,036 |
|
Accumulated other comprehensive loss |
|
(356 |
) |
|
(42 |
) |
Accumulated deficit |
|
(30,932 |
) |
|
(31,542 |
) |
Total
stockholders’ equity |
|
42,812 |
|
|
39,485 |
|
Total liabilities and
stockholders’ equity |
|
$ |
51,764 |
|
|
$ |
48,385 |
|
|
|
|
|
|
|
|
|
|
MITEK SYSTEMS, INC. |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(Unaudited) |
(amounts in thousands except share data) |
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
Six Months Ended March 31, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Revenue |
|
|
|
|
|
|
|
|
Software |
|
$ |
7,797 |
|
|
$ |
5,556 |
|
|
$ |
13,780 |
|
|
$ |
10,286 |
|
SaaS,
maintenance and consulting |
|
3,622 |
|
|
2,966 |
|
|
6,908 |
|
|
5,640 |
|
Total
revenue |
|
11,419 |
|
|
8,522 |
|
|
20,688 |
|
|
15,926 |
|
Operating costs and
expenses |
|
|
|
|
|
|
|
|
Cost of
revenue-software |
|
154 |
|
|
132 |
|
|
368 |
|
|
522 |
|
Cost of
revenue-SaaS, maintenance and consulting |
|
676 |
|
|
588 |
|
|
1,353 |
|
|
1,140 |
|
Selling
and marketing |
|
3,704 |
|
|
2,553 |
|
|
7,542 |
|
|
5,016 |
|
Research
and development |
|
2,401 |
|
|
1,813 |
|
|
4,852 |
|
|
3,520 |
|
General
and administrative |
|
2,742 |
|
|
2,264 |
|
|
4,985 |
|
|
4,355 |
|
Acquisition-related costs and expenses |
|
518 |
|
|
541 |
|
|
1,036 |
|
|
1,084 |
|
Total
operating costs and expenses |
|
10,195 |
|
|
7,891 |
|
|
20,136 |
|
|
15,637 |
|
Operating income |
|
1,224 |
|
|
631 |
|
|
552 |
|
|
289 |
|
Other income, net |
|
67 |
|
|
30 |
|
|
132 |
|
|
66 |
|
Income before income
taxes |
|
1,291 |
|
|
661 |
|
|
684 |
|
|
355 |
|
Income tax
provision |
|
(74 |
) |
|
(79 |
) |
|
(74 |
) |
|
(95 |
) |
Net income |
|
$ |
1,217 |
|
|
$ |
582 |
|
|
$ |
610 |
|
|
$ |
260 |
|
Net income per share –
basic |
|
$ |
0.04 |
|
|
$ |
0.02 |
|
|
$ |
0.02 |
|
|
$ |
0.01 |
|
Net income per share –
diluted |
|
$ |
0.03 |
|
|
$ |
0.02 |
|
|
$ |
0.02 |
|
|
$ |
0.01 |
|
Shares used in
calculating net income per share – basic |
|
32,786,079 |
|
|
31,325,577 |
|
|
32,581,988 |
|
|
31,214,325 |
|
Shares used in
calculating net income per share – diluted |
|
34,815,304 |
|
|
33,133,920 |
|
|
34,818,392 |
|
|
32,625,526 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MITEK SYSTEMS, INC. |
NON-GAAP NET INCOME (LOSS)
RECONCILIATION |
(Unaudited) |
(amounts in thousands except share data) |
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
Six Months Ended March 31, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
Income before income
taxes |
|
$ |
1,291 |
|
|
$ |
661 |
|
|
$ |
684 |
|
|
$ |
355 |
|
Add back: |
|
|
|
|
|
|
|
|
Acquisition-related costs and expenses |
|
518 |
|
|
541 |
|
|
1,036 |
|
|
1,084 |
|
Litigation costs |
|
— |
|
|
114 |
|
|
— |
|
|
227 |
|
Stock
compensation expense |
|
1,223 |
|
|
1,172 |
|
|
2,308 |
|
|
2,161 |
|
Non-GAAP income before
income taxes |
|
3,032 |
|
|
2,488 |
|
|
4,028 |
|
|
3,827 |
|
Non-GAAP provision for
income taxes |
|
(74 |
) |
|
(79 |
) |
|
(74 |
) |
|
(95 |
) |
Non-GAAP net
income |
|
2,958 |
|
|
2,409 |
|
|
3,954 |
|
|
3,732 |
|
Non-GAAP income per
share - basic |
|
$ |
0.09 |
|
|
$ |
0.08 |
|
|
$ |
0.12 |
|
|
$ |
0.12 |
|
Non-GAAP income per
share - diluted |
|
$ |
0.08 |
|
|
$ |
0.07 |
|
|
$ |
0.11 |
|
|
$ |
0.11 |
|
Shares used in
calculating non-GAAP net income per share - basic |
|
32,786,079 |
|
|
31,325,577 |
|
|
32,581,988 |
|
|
31,214,325 |
|
Shares used in
calculating non-GAAP net income per share - diluted |
|
34,815,304 |
|
|
33,133,920 |
|
|
34,818,392 |
|
|
32,625,526 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
________________
Follow Mitek on
LinkedIn: http://www.linkedin.com/company/mitek-systems-inc- Follow
Mitek on Twitter: @miteksystemsConnect with Mitek on Facebook:
http://www.facebook.com/MitekSystems See Mitek on YouTube:
http://www.youtube.com/miteksystems Read Mitek’s latest blog
post: http://www.miteksystems.com/blog
Investor Contact:
Todd Kehrli or Jim Byers
MKR Group, Inc.
mitk@mkr-group.com
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