OREANDA-NEWS. Mitek (NASDAQ:MITK), a global leader in mobile capture and identity verification software solutions, today announced its financial results for the third quarter of fiscal 2016 ended June 30, 2016.

Third Quarter Fiscal 2016 Highlights

  • Total revenue increased 41% year over year to $9.1 million
  • GAAP net income of $0.7 million, or $0.02 per diluted share
  • Non-GAAP net income of $2.4 million, or $0.07 per diluted share
  • Total cash and investments increased to $33.2 million at the end of the third quarter, compared to $31.9 million at the end of the second quarter of fiscal 2016

Commenting on the results, James DeBello, Chairman and CEO of Mitek, said:

“Our strong quarterly results were driven by revenue growth from both our new mobile ID solutions and our industry leading Mobile Deposit. During the quarter, we licensed our mobile ID solutions to several new logos, including another new Fortune 500 company. We remain focused on establishing Mitek as the leading provider of mobile ID verification solutions to banks and other enterprises in the rapidly growing mobile self-service market. With our market momentum, competitive advantages and strong balance sheet, we are well positioned for continued growth throughout the remainder of the year and beyond.”

Third Quarter Fiscal 2016 Results

Total revenue for the third quarter of fiscal 2016 was $9.1 million, a 41% increase year over year compared to total revenue of $6.4 million in the third quarter of fiscal 2015.

GAAP net income for the third quarter of fiscal 2016 was $0.7 million, or $0.02 per diluted share, compared to GAAP net income of $0.9 million, or $0.03 per diluted share, in the third quarter of fiscal 2015. 

Non-GAAP net income for the third quarter of fiscal 2016 was $2.4 million, or $0.07 per diluted share, compared to non-GAAP net income of $2.2 million, or $0.07 per diluted share, in the third quarter of fiscal 2015.

The Company ended the third quarter of fiscal 2016 with cash and investments of $33.2 million, up from $31.9 million at the end of the second quarter of fiscal 2016.

Conference Call Information

Mitek management will host a conference call and live webcast for analysts and investors today at 8:00 a.m. Pacific Time (11:00 a.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 888-471-3843, access code: 2850324. International parties should call 719-325-2215 using access code: 2850324. 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 more than 5,200 organizations and used by tens of millions of consumers daily for mobile check deposit, new account opening, insurance quoting and more.

     
MITEK SYSTEMS, INC.    
CONSOLIDATED BALANCE SHEETS    
(amounts in thousands except share data)    
               
      June 30,
2016
(Unaudited) 		   September 30,
2015		    
           
               
               
ASSETS              
Current assets:              
Cash and cash equivalents     $   5,009     $   2,753      
Short-term investments         19,908         23,921      
Accounts receivable, net         4,614         3,937      
Other current assets         1,445         798      
Total current assets         30,976         31,409      
               
Long-term investments         8,313         -      
Property and equipment, net         826         975      
Goodwill and intangible assets         5,735         6,270      
Other non-current assets         92         92      
Total assets     $   45,942     $   38,746      
               
LIABILITIES AND STOCKHOLDERS' EQUITY              
Current liabilities:              
Accounts payable     $   1,107     $   1,538      
Accrued payroll and related taxes         2,440         2,061      
Deferred revenue, current portion         3,815         3,516      
Other current liabilities         650         289      
Total current liabilities         8,012         7,404      
               
Deferred revenue, non-current portion         162         222      
Other non-current liabilities         791         687      
Total liabilities         8,965         8,313      
               
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,              
32,726,140 and 31,721,114 shares issued and outstanding, respectively         33         32      
Additional paid-in capital         69,514         63,905      
Accumulated other comprehensive loss         (68 )       (3 )    
Accumulated deficit         (32,502 )       (33,501 )    
Total stockholders' equity         36,977         30,433      
Total liabilities and stockholders' equity     $   45,942     $   38,746      
               
MITEK SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(amounts in thousands except share data)
                   
      Three Months Ended    Nine Months Ended 
      June 30,   June 30,
        2016       2015       2016       2015  
Revenue                  
Software      $   5,760     $   4,675     $   16,046     $   12,415  
Services         3,345         1,765         8,985     $   5,087  
Total revenue         9,105         6,440         25,031         17,502  
Operating costs and expenses                  
Cost of revenue-software         157         266         679         705  
Cost of revenue-maintenance and professional services         636         326         1,776         942  
Selling and marketing         2,940         1,646         7,956         4,513  
Research and development         1,940         1,353         5,460         3,896  
General and administrative         2,185         1,804         6,537         5,781  
Acquisition-related costs and expenses         553         736         1,640         736  
Total operating costs and expenses         8,411         6,131         24,048         16,573  
Operating income         694         309         983         929  
                   
Total other income, net         45         30         111         67  
Income before income taxes         739         339         1,094         996  
Income tax benefit (provision)          -         578         (95 )       575  
Net income     $   739     $   917     $   999     $   1,571  
Net income per share - basic     $   0.02     $   0.03     $   0.03     $   0.05  
Net income per share - diluted     $   0.02     $   0.03     $   0.03     $   0.05  
Shares used in calculating net income per share - basic         31,823,386         30,764,694         31,477,723         30,704,250  
Shares used in calculating net income per share - diluted         34,531,964         31,645,696         33,461,787         31,389,569  
                   
MITEK SYSTEMS, INC.
NON-GAAP NET INCOME RECONCILIATION
(Unaudited)
(amounts in thousands except share data)
                   
       Three Months Ended     Nine Months Ended 
      June 30,   June 30,
        2016       2015       2016       2015  
Income before income taxes     $   739     $   339     $   1,094     $   996  
                   
Add back:                  
Acquisition-related expenses         553         736         1,639         816  
Litigation costs         186         339         414         1,039  
Stock compensation expense         947         810         3,108         2,495  
                   
Non-GAAP income before income taxes         2,425         2,224         6,255         5,346  
Non-GAAP provision for income taxes (1)         -          (57 )       (95 )       (60 )
                   
Non-GAAP net income      $   2,425     $   2,167     $   6,160     $   5,286  
                   
Non-GAAP net income per share - basic     $   0.08     $   0.07     $   0.20     $   0.17  
                   
Non-GAAP net income per share - diluted     $   0.07     $   0.07     $   0.18     $   0.17  
                   
Shares used in calculating non-GAAP net income per share - basic         31,823,386         30,764,694         31,477,723         30,704,250  
                   
Shares used in calculating non-GAAP net income per share - diluted         34,531,964         31,645,696         33,461,787         31,389,569  
                   
(1) Non-GAAP provision for income taxes for the three months and year ended June 30, 2015 excludes a GAAP tax benefit of    
$634,930 related to the acquisition of IDchecker.