Mitek Systems Reports Profit for Second Quarter of Fiscal 2010

SAN DIEGO, May 17 /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 second quarter of fiscal 2010 ended March 31, 2010.

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Net sales for the second quarter of fiscal 2010 were approximately $1,517,000, compared to $888,000 in the same quarter last year, an increase of approximately $629,000 or 71 percent.  Gross margin for the second quarter of fiscal 2010 was 88 percent, compared with 85 percent for the same quarter last year.  Total costs and expenses including cost of goods sold were approximately $1,419,000 in the second quarter of fiscal 2010, up from $1,125,000 in the second quarter in fiscal 2009.  

Operating income for the second quarter of fiscal 2010 was approximately $98,000, compared to an operating loss of approximately $237,000 for the same quarter last year.

Net income for the second quarter of fiscal 2010 was approximately $7,000 or $0.0 per basic and diluted share, compared with a net loss of approximately $238,000, or $0.01 per basic and diluted share, for the same quarter last year.

Net income for this period was decreased by non-cash expenses totaling $268,000, which included stock-based compensation expense of approximately $191,000 and accretion of the discount on the convertible debt of approximately $77,000.

The Company ended the second quarter of fiscal year 2010 with cash and cash equivalents of approximately $1,415,000, compared with $775,000 at the end of the same quarter last year. The Company had working capital of approximately $904,000 and a current ratio of 1.52 at March 31, 2010, compared to working capital of approximately $27,000 and a current ratio of 1.02 at March 31, 2009.   The Company had stockholders' equity of approximately $765,000 and $493,000 at March 31, 2010 and March 31, 2009, respectively.

"We are pleased that our improved performance has allowed us to continue investing in new mobile imaging technologies important to our future growth," said Mitek Systems President and CEO James DeBello.

"Recent reports from leading industry analysts indicate growing market acceptance for our flagship Mobile Deposit," added DeBello. "We are actively engaged with several large partners, banks and payments processors in Mobile Deposit integration projects. As a result, we believe that we have created a meaningful time to market advantage and the gold standard for mobile check deposit that provides an exceptional user experience and processing accuracy."

Key developments for Mitek during the quarter included:

• Signed  license agreement with The Bancorp Bank ("Bancorp"), a wholly owned subsidiary of The Bancorp, Inc. (Nasdaq: TBBK), to expand its  remote-deposit-gathering capabilities by enabling  customers to deposit personal and business checks via their smartphone cameras in an easy and secure way utilizing Mitek's Mobile Deposit® application.
• Signed OEM agreement that enables NetDeposit, a leading provider of distributed-check-capture solutions, to provide mobile deposit capabilities to its financial institution and merchant customers. Under the agreement, NetDeposit will integrate the capabilities of Mitek's Mobile Deposit® application into its NetCapture suite of remote deposit capture (RDC) solutions.  

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. All of these applications make use of Mitek's proprietary mobile imaging technology that converts a three dimensional color photograph of a check, receipt or document into a perfectly sized image prepared for data processing.

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

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 March 31, 2010, 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.

SOURCE Mitek Systems, Inc.