Mitek Systems Reports Operating Results for First Quarter of Fiscal 2010

SAN DIEGO, Feb. 16 /PRNewswire-FirstCall/ -- Mitek Systems, Inc. (OTC Bulletin Board: MITK; www.miteksystems.com), an innovator of advanced-image analytics and mobile-document-capture applications for smartphones, today announced financial results for the first quarter of fiscal 2010 ended December 31, 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/20041117/LAW022LOGO)

Net sales for the first quarter of fiscal 2010 were approximately $1,159,000, compared with $1,011,000 in the same quarter last year, and approximately $804,000 in the fourth quarter of fiscal 2009.  Gross margin for the first quarter of fiscal 2010 was 70 percent, compared with 81 percent for the same quarter last year.

Net loss for the first quarter of fiscal 2010 was approximately $223,000, or $0.01 per basic and diluted share, compared with a net loss of $668,000, or $0.04 per basic and diluted share for the same fiscal quarter last year.

The Company ended the first quarter of fiscal year 2010 with cash and cash equivalents of approximately $1,090,000, compared with $674,000 at the end of fiscal year 2009.  As of December 31, 2009, the Company had working capital of approximately $555,000 and current ratio 1.40, compared with negative working capital of approximately $280,000 and a current ratio 0.80 at September 30, 2009.  The Company had stockholders' equity of approximately $556,000 and $126,000 at December 31, 2009, and September 30, 2009, respectively.

Mitek announced in December that it had completed a financing transaction, principally with institutional investors, to generate gross proceeds to Mitek of approximately $1,000,000.

"Our first-quarter results are a good start to 2010," said Mitek Systems President and CEO James DeBello. "We are executing on our growth plan, managing our operating expenses -- which were down 32 percent from the same quarter last year -- and our cash position and working capital are both positive.  

"While we continue to focus on financial stability, we are confident that Mitek Systems is well-positioned to take advantage of the growing acceptance of mobile banking via smartphone-camera transactions," DeBello added.  "We are well along in transitioning our proprietary image-analytics expertise to smartphone cameras and the market trends for our Oomph apps look favorable."

Key developments for Mitek during the quarter included:

• The launch of Mobile Phax™ for BlackBerry devices.  Mobile Phax allows users to simply take pictures of documents using their mobile phones, and the app turns them into high-quality images that are printer-friendly and can be sent to a fax machine or an email address.
• Mitek announced a strategic partnership with ClairMail, a leading mobile-banking and payments-solution provider, to integrate Mitek's Mobile Deposit into ClairMail's mobile-banking and payments platform, which is used to power the mobile-banking services of many of the nation's leading financial institutions.

Mitek Systems' innovative family of Office On My Phone (Oomph) applications includes Mobile Deposit®, which allows users to deposit checks via camera-equipped mobile phones; Mobile Phax, which allows a user to take a photo of a document or page and send it to a fax machine or as a PDF to an email address, and Mobile Receipt™, which enables professionals on the go to create and submit expense reports with photos of receipts taken with their smartphones.

Oomph apps are available through the Apple App Store and RIM's BlackBerry App World, and are distributed through a growing number of strategic relationships with leading integrators such as NCR, Fiserv, RDM and J&B Software.

Analysis of the Company's financial statements is available within the Management's Discussion and Analysis section of the Form 10-Q for the quarter ended December 31, 2009, which will be posted on the Company's website at www.miteksystems.com.  A printed copy of the 10-Q is also available from the Company upon request.  The Company's Quarterly Report on Form 10-Q will be available, when filed, on the SEC's website at www.sec.gov.

About Mitek Systems

Mitek Systems (OTC: MITK.OB; www.miteksystems.com) is an innovator of advanced image analytics and mobile document capture applications for smartphones.  For more than 20 years, the Company has developed a comprehensive suite of intelligent character recognition software used to test, clean, authenticate and extract data from imaged checks, documents and objects, and its software is used to process more than 10 billion items per year.  For more information about Mitek Systems, contact the Company at 858-503-7810 or visit www.miteksystems.com.

Forward-Looking Statement Disclosure

With the exception of historical matters, the matters discussed in this news release are forward-looking statements that involve risks and uncertainty.  Forward-looking statements include, but are not limited to, statements relating to the launch of new products and future prospects of Mitek's growth and sales volume.  Actual results could differ from such forward-looking statements.  There can be no assurance that Mitek will achieve results set forth herein.  Mitek and Mitek Systems are registered trademarks of Mitek Systems, Inc.

    
    
    MITEK SYSTEMS, INC.                                                   
    CONDENSED BALANCE SHEET                                               
    (Unaudited)                                                           
                                                                          
                                                December 30,  December 30,
                                                    2009          2008 
                                                    ----          ---- 
    ASSETS                                                                
                                                                          
      Current assets                             $1,928,000    $1,559,000 
      Property and equipment - net                   51,000        90,000 
      Software development costs - net              332,000       412,000 
      Other long-term assets                         72,000        29,000 
                                                                          
                                                 ----------    ---------- 
    TOTAL ASSETS                                 $2,383,000    $2,090,000 
                                                 ==========    ========== 
                                                                          
    LIABILITIES AND STOCKHOLDERS' EQUITY                                  
                                                                          
      Current liabilities                        $1,373,000    $1,339,000 
      Long-term debt                                406,000             - 
      Other long-term liabilities                    48,000        56,000 
                                                     ------        ------ 
    TOTAL LIABILITIES                             1,827,000     1,395,000 
                                                  ---------     --------- 
                                                                          
    Stockholders' equity:                                                 
      Common stock                                   17,000        17,000 
      Additional paid-in capital                 15,574,000    14,836,000 
      (Accumulated deficit)                     (15,035,000)  (14,158,000)
                                                -----------   ----------- 
    Total stockholder's equity                      556,000       695,000 
                                                    -------       ------- 
                                                                          
                                                 ----------    ---------- 
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $2,383,000    $2,090,000 
                                                 ==========    ========== 
    
    
    
    MITEK SYSTEMS, INC.                                                 
    STATEMENTS OF OPERATIONS                                            
    (Unaudited)                                                         
                                                                        
                                                 THREE MONTHS ENDED     
                                              December 31,  December 31,
                                                  2009          2008 
                                                  ----          ---- 
                                                                        
    NET SALES                                  $1,159,000    $1,011,000 
                                                                        
    OPERATING COSTS AND  EXPENSES:                                      
        Cost of sales                             353,000       196,000 
        Operations                                      -        23,000 
        Selling and marketing                     165,000       361,000 
        Research and development                  506,000       572,000 
        General and administrative                333,000       530,000 
                                                                        
                                                ---------     --------- 
          Total costs and expenses              1,357,000     1,682,000 
                                                                        
                                                 --------      -------- 
    OPERATING LOSS                               (198,000)     (671,000)
                                                                        
        Other (expense) income - net              (23,000)        3,000 
                                                                        
                                                 --------      -------- 
    LOSS BEFORE INCOME TAXES                     (221,000)     (668,000)
                                                                        
    PROVISION FOR INCOME TAXES                     (2,000)            - 
                                                   ------           ---
                                                                        
                                                 --------      -------- 
    NET LOSS                                     (223,000)     (668,000)
                                                 ========      ======== 
                                                                        
                                                    -----         ----- 
    NET LOSS PER SHARE - BASIC AND DILUTED          (0.01)        (0.04)
                                                    =====         ===== 
                                                                        
    WEIGHTED AVERAGE NUMBER OF COMMON                                   
                                               ----------    ---------- 
      SHARES OUTSTANDING - BASIC AND DILUTED   16,751,137    16,751,137 
                                               ==========    ========== 

SOURCE Mitek Systems, Inc.