mitk-20200430
0000807863FALSENASDAQ00008078632020-04-302020-04-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
 
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 30, 2020
 
MITEK SYSTEMS INC.
(Exact name of registrant as specified in its charter)
 
 
Delaware001-3523187-0418827
(State or other jurisdiction
of incorporation)
(Commission File Number)(IRS Employer
Identification No.)
   
600 B Street, Suite 100
San Diego,California 92101
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (619) 269-6800
Not Applicable
(Former name or former address, if changed since last report.)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value 00008078632020-04-302020-04-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
FORM 8-K
 
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 30, 2020
 
MITEK SYSTEMS INC.
(Exact name of registrant as specified in its charter)
 
 
Delaware001-3523187-0418827
(State or other jurisdiction
of incorporation)
(Commission File Number)(IRS Employer
Identification No.)
   
600 B Street, Suite 100
San Diego,California 92101
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (619) 269-6800
Not Applicable
(Former name or former address, if changed since last report.)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.001 per shareMITK
The NASDAQ Capital Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



Item 2.02 Results of Operations and Financial Condition.
On April 30, 2020, Mitek Systems, Inc. (the “Company”) issued a press release regarding the Company’s financial results for the second quarter ended March 31, 2020. The full text of the Company’s press release is attached hereto as Exhibit 99.1.
In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. The exhibits shall be deemed to be filed or furnished, depending on the relevant item requiring such exhibit, in accordance with the provisions of Item 601 of Regulation S-K (17 CFR 229.601) and Instruction B.2 to this form.
Exhibit Number Description
99.1   Press Release issued on April 30, 2020



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
  Mitek Systems, Inc.
    
April 30, 2020 By:/s/ Jeffrey C. Davison
   Jeffrey C. Davison
   Chief Financial Officer




Exhibit Index
 
Exhibit Number Description
99.1   

MITK
The NASDAQ Capital Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



Item 2.02 Results of Operations and Financial Condition.
On April 30, 2020, Mitek Systems, Inc. (the “Company”) issued a press release regarding the Company’s financial results for the second quarter ended March 31, 2020. The full text of the Company’s press release is attached hereto as Exhibit 99.1.
In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. The exhibits shall be deemed to be filed or furnished, depending on the relevant item requiring such exhibit, in accordance with the provisions of Item 601 of Regulation S-K (17 CFR 229.601) and Instruction B.2 to this form.
Exhibit Number Description
99.1   Press Release issued on April 30, 2020



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
  Mitek Systems, Inc.
    
April 30, 2020 By:/s/ Jeffrey C. Davison
   Jeffrey C. Davison
   Chief Financial Officer




Exhibit Index
 
Exhibit Number Description
99.1   


Document

Mitek Reports Record Second Quarter with 16% Revenue Growth
and Significant Increase in Non-GAAP Net Income


SAN DIEGO, CA, April 30, 2020 - Mitek (NASDAQ: MITK, www.miteksystems.com), a global leader in mobile capture and digital identity verification solutions, today announced its financial results for the second quarter of fiscal 2020 ended March 31, 2020.

Fiscal Second Quarter 2020 Financial Highlights

Total revenue increased by $3.2 million or 16% year over year to $23.2 million in a record second quarter.
GAAP net income was $0.9 million, or $0.02 per diluted share.
Non-GAAP net income was $5.4 million, or $0.13 per diluted share, an increase of 98% year over year.
Cash flow from operations was $3.2 million.
Total cash and investments were $42.5 million at the end of the fiscal second quarter.

Commenting on the results, Max Carnecchia, CEO of Mitek, said:

“We are pleased to report record revenue, significantly improved profitability and solid cash flow generation for the fiscal second quarter. In this challenging global business environment, where companies are making the digitization of their business a priority, we are seeing behavioral changes from both businesses and consumers that we believe will positively impact our mobile deposit and identity verification businesses in the long-term.”

Fiscal 2020 Financial Guidance

Due to the uncertainty of the full impact of the COVID-19 pandemic on the economy, its customers and its business, Mitek is withdrawing its previously provided guidance for the fiscal year 2020 ending September 30, 2020. Management will provide additional information during its earnings conference call.

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 access the live call, dial 888-394-8218 (US and Canada) or +1 856-344-9221 (International) and give the participant passcode 7991473.

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. In addition, a phone replay will be available approximately two hours following the end of the call, and it will remain available for one week. To access the call replay dial-in information, please click here.

About Mitek

Mitek (NASDAQ: MITK) is a global leader in mobile capture and digital identity verification built on the latest advancements in computer vision and artificial intelligence. Mitek’s identity verification solutions enable organizations to verify an individual’s identity during digital transactions to reduce risk and meet regulatory requirements, while increasing revenue from digital channels. More than 7,000 organizations use Mitek to enable trust and convenience for mobile check deposit, new account opening and more. Mitek is based in San Diego, Calif., with offices across the U.S. and Europe. Learn more at www.miteksystems.com. [(MITK-F)]




Follow Mitek on LinkedIn, Twitter and YouTube, and read Mitek’s latest blog posts here.

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, the extent to which the COVID-19 outbreak and measures taken in response thereto impact our business, results of operations and financial condition, 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, 2019, 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, acquisition-related costs and expenses, costs associated with our strategic process, executive transition costs, restructuring costs, income tax effect of pre-tax adjustments, and the cash tax difference. 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 financial statements, 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, 2020September 30, 2019
ASSETS  
Current assets:  
Cash and cash equivalents$16,928  $16,748  
Short-term investments19,018  16,502  
Accounts receivable, net13,727  14,938  
Contract assets2,704  2,350  
Prepaid expenses1,604  1,487  
Other current assets1,466  2,105  
Total current assets55,447  54,130  
Long-term investments6,546  1,552  
Property and equipment, net3,910  4,231  
Right-of-use assets5,999  —  
Goodwill and intangible assets54,889  57,041  
Deferred income tax assets16,128  16,596  
Other non-current assets5,059  2,347  
Total assets$147,978  $135,897  
LIABILITIES AND STOCKHOLDERS’ EQUITY  
Current liabilities:  
Accounts payable$2,925  $3,555  
Accrued payroll and related taxes5,567  6,410  
Deferred revenue, current portion8,760  5,612  
Lease liabilities, current portion1,395  —  
Acquisition-related contingent consideration575  1,036  
Restructuring accrual333  1,526  
Other current liabilities853  1,909  
Total current liabilities20,408  20,048  
Deferred revenue, non-current portion1,213  736  
Lease liabilities, non-current portion6,117  —  
Deferred income tax liabilities5,578  5,555  
Other non-current liabilities754  2,225  
Total liabilities34,07028,564
Stockholders’ equity:  
Preferred stock, $0.001 par value, 1,000,000 shares authorized, none issued and outstanding, as of March 31, 2020 and September 30, 2019
—  —  
Common stock, $0.001 par value, 60,000,000 shares authorized, 41,075,875 and 40,367,456 issued and outstanding, as of March 31, 2020 and September 30, 2019, respectively
41  40  
Additional paid-in capital138,021  132,160  
Accumulated other comprehensive loss(3,814) (4,061) 
Accumulated deficit(20,340) (20,806) 
Total stockholders’ equity113,908  107,333  
Total liabilities and stockholders’ equity$147,978  $135,897  




MITEK SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(amounts in thousands except per share data)
  
 Three Months Ended March 31,Six Months Ended March 31,
 2020201920202019
Revenue  
Software and hardware$11,453  $10,585  $22,968  $20,580  
Services and other11,739  9,398  22,291  17,086  
Total revenue23,192  19,983  45,259  37,666  
Operating costs and expenses 
Cost of revenue—software and hardware864  907  1,635  1,752  
Cost of revenue—services and other2,322  2,084  4,484  4,117  
Selling and marketing7,448  6,752  14,778  13,960  
Research and development4,819  5,290  9,429  9,778  
General and administrative5,210  4,827  10,498  10,669  
Acquisition-related costs and expenses1,579  1,773  3,187  3,600  
Restructuring costs(114) —  (114) —  
Total operating costs and expenses22,128  21,633  43,897  43,876  
Operating income (loss)1,064  (1,650) 1,362  (6,210) 
Other income, net32  140  335  154  
Income (loss) before income taxes1,096  (1,510) 1,697  (6,056) 
Income tax benefit (provision)(188) 794  (229) 2,149  
Net income (loss)$908  $(716) $1,468  $(3,907) 
Net income (loss) per share—basic$0.02  $(0.02) $0.04  $(0.10) 
Net income (loss) per share—diluted$0.02  $(0.02) $0.03  $(0.10) 
Shares used in calculating net income (loss) per share—basic
41,022  38,926  40,817  38,583  
Shares used in calculating net income (loss) per share—diluted
42,028  38,926  42,030  38,583  



MITEK SYSTEMS, INC.
NON-GAAP NET INCOME RECONCILIATION
(Unaudited)
(amounts in thousands except per share data)
  
Three Months Ended March 31, Six Months Ended March 31,
2020201920202019
Net income (loss)$908  $(716) $1,468  $(3,907) 
Non-GAAP adjustments:
Acquisition-related costs and expenses1,579  1,773  3,187  3,600  
Litigation costs561  —  1,034  —  
Costs associated with strategic process—  219  —  1,083  
Executive transition costs(1)—  —  —  251  
Stock compensation expense2,308  2,353  4,611  5,023  
Restructuring costs(114) —  (114) —  
Income tax effect of pre-tax adjustments(997) (976) (2,005) (2,237) 
Cash tax difference(2)1,184  85  2,234  (29) 
Non-GAAP net income5,429  2,738  10,415  3,784  
Non-GAAP income per share—basic$0.13  $0.07  $0.26  $0.10  
Non-GAAP income per share—diluted$0.13  $0.07  $0.25  $0.09  
Shares used in calculating non-GAAP net income per share—basic
41,022  38,926  40,817  38,583  
Shares used in calculating non-GAAP net income per share—diluted
42,028  40,808  42,030  40,561  

(1)Comprised of costs associated with the transition of the company’s executive officers. Our non-GAAP financial measures exclude these transition costs as we believe that such expense is inconsistent with the normally recurring operations of our company and the inclusion of these costs makes it difficult to make period-to-period comparisons of our operating performance.
(2)The company’s non-GAAP net income is calculated using a cash tax rate of 0% and 3% in fiscal years 2020 and 2019, respectively. The estimated cash tax rate is the estimated tax payable on the company’s tax returns as a percentage of estimated annual non-GAAP pre-tax net income. The company uses an estimated cash tax rate to adjust for the historical variation in the effective book tax rate associated with the reversal of valuation allowances, the utilization of research and development tax credits, and the utilization of loss carryforwards which currently have an overall effect of reducing taxes payable. The company believes that the cash tax rate provides a more transparent view of the company’s operating results. The company’s effective tax rate used for the purposes of calculating GAAP net income (loss) for the three months ended March 31, 2020 and 2019 was 17% and 53%, respectively. The company’s effective tax rate used for the purposes of calculating GAAP net income (loss) for the six months ended March 31, 2020 and 2019 was 13% and 35%, respectively.
________________ 

Investor Contact:
Todd Kehrli or Jim Byers
MKR Group, Inc.
mitk@mkr-group.com


v3.20.1
Cover
Apr. 30, 2020
Cover [Abstract]  
Document Type 8-K
Document Period End Date Apr. 30, 2020
Entity Registrant Name MITEK SYSTEMS INC
Entity Incorporation, State or Country Code DE
Entity File Number 001-35231
Entity Tax Identification Number 87-0418827
Entity Address, Address Line One 600 B Street, Suite 100
Entity Address, City or Town San Diego,
Entity Address, State or Province CA
Entity Address, Postal Zip Code 92101
City Area Code 619
Local Phone Number 269-6800
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.001 per share
Trading Symbol MITK
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0000807863
Amendment Flag false