Yesterday's release had a couple of nice items in it...the first:
The order from IBM represents the largest single site installation of recognition engines in Mitek's company history. IBM has
licensed the CheckScript recognition engine from Mitek for use in IBM's ImagePlus Intelligent Forms Processing Solution (IFP)
for Windows NT.
the second....:
William Boersing, Mitek's vice president of North American Sales, said, ''We look forward to working with IBM in support of
this major installation and many others in the future.''
FYI 6mo numbers...:
Mitek Systems Reports Second Quarter 1999 Results
Increased Acceptance of Forms Processing Products in Target Markets
Drives Quarterly Growth
SAN DIEGO--(BUSINESS WIRE)--April 22, 1999--Mitek Systems Inc. (Nasdaq:MITK - news), a worldwide leader in
intelligent character recognition technology, products and services for the document imaging markets, Thursday reported a
significant growth in revenue for the second quarter 1999 as the company continues to rapidly penetrate its target markets.
John Thornton, Mitek's chairman and president, said: ''We believe our continued growth over last year indicates the successful
execution of our strategic growth plan. An integral part of our growth is penetrating targeted document imaging markets with
new applications of our core technology.
''During the second quarter 1999, we made significant inroads in the forms processing market in particular, which drove our
40% top-line growth for the quarter.''
Results
For the three months ended March 31, 1999, Mitek reported a 40% increase in revenues of $2,071,000 vs. $1,482,000 over
the same period last year. The company reported a net profit of $334,000, or $0.03 per basic and diluted share, compared
with a net loss in the second quarter last year of $187,000, or $0.02 per basic and diluted share.
For the six months ended March 31, 1999, Mitek reported a 54% increase in revenues of $4,281,000 vs. $2,788,000 over
the same period last year. The company reported a net profit of $708,000, or $0.06 per basic and diluted share, compared
with a net loss in the same period last year of $1,816,000, or $0.16 per basic and diluted share.
Second Quarter Performance
Mitek continued its upward trend in financial performance for the second quarter 1999, with the company experiencing greater
than expected acceptance of its forms processing products in the estimated $225 million forms processing target market.
Mitek's products offer more features with each new release and have the benefit of the company's own character recognition
engine.
Also during the quarter, Mitek signed a co-marketing agreement with Optika Inc. (Nasdaq:OPTK - news) to provide a forms
processing software solution specifically for financial services applications. Mitek and Optika will offer a fully integrated version
of Mitek's automated forms processing solution to every customer who purchases Optika's eMedia(tm) product.
Mitek's new document classification and dynamic field identification capabilities are expected to provide significant additional
benefits to financial service application users.
Thornton said, ''Our agreement with Optika has positioned our integrated product to offer a distinct competitive advantage in
many forms-intensive financial and banking sectors.''
Product Margin
Gross margins for the quarter have increased over the previous quarters due to increasing revenues from software sales rather
than a mix of software and hardware. Going forward, Mitek expects gross margins to increase to about 80%, as the company
anticipates future sales to be comprised of an increasing software component.
Financial Position
At March 31, 1999, Mitek maintained a positive cash position with $1.85 million in cash and cash equivalents as compared
with $1.2 million at Dec. 31, 1998. There were no borrowings under the lines of credit at March 31, 1999.
Outlook
Thornton stated: ''In the third quarter, we expect the launch of our newly licensed bank systems software from BSM, as well
as new configurations of the Premier Forms Processor (PFP), to position the company in different end-user marketplaces. This
ability to reach into new markets should assist us in new revenue growth in the current quarter and for this fiscal year.''
Mitek Systems
Mitek Systems is a worldwide leader in intelligent character recognition technology, products and services for the document
imaging markets.
The company's document imaging software engine and intelligent character recognition products and services are used in
mission-critical and high-volume data entry, data capture, and forms processing applications installed in many of the world's
leading financial institutions, manufacturing and service companies, and government organizations.
For more information on Mitek Systems Inc. please visit the company's Web site at www.miteksys.com, or call
800/PRO-INFO and dial code ''MITK'' to receive information via facsimile at no cost.
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