Excellent qtrly report out today:
(BSNS WIRE) Mitek Systems Reports Second Quarter 1999 Results; Increased
Mitek Systems Reports Second Quarter 1999 Results; Increased Acceptance of
Forms Processing Products in Target Markets Drives Quarterly Growth
Business Editors
SAN DIEGO--(BUSINESS WIRE)--April 22, 1999--Mitek Systems Inc.
(Nasdaq:MITK), 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) 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.
Additionally, investors will have the opportunity to listen to
Thursday's Mitek conference call at 11 a.m. Eastern Standard Time over
the Internet through Vcall at vcall.com.
To listen to the live call, go to the Web site at least fifteen
minutes early to register, download, and install any necessary audio
software. For those who cannot listen to the live broadcast, a replay
will be available shortly after the call.
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 development and pace of sales
of the company's products, expected trends and growth in the company's
results of operations, projections concerning the company's available
cash flow and liquidity, anticipated penetration in new and existing
markets for the company's products and the size of such markets,
anticipated acceptance of the company's products by existing and new
customers, the ability of the company to sustain any growth in sales
and revenue and the increase in sales representatives and other
personnel. The company's actual results could differ in such
forward-looking statements. There can be no assurance that the company
will achieve the anticipated results set forth herein.
Mitek is a registered trademark of Mitek Systems Inc. Optika(R)
and Optika eMedia(tm) are registered trademarks or trademarks of
Optika Inc.
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*T
Mitek Systems Inc.
Consolidated Statements of Operations
(Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
March 31, March 31,
1999 1998 1999 1998
NET SALES $2,071,000 $1,482,000 $4,281,000 $2,788,000
COST OF GOODS SOLD 330,000 532,000 752,000 1,029,000
GROSS MARGIN 1,741,000 950,000 3,529,000 1,759,000
COSTS AND EXPENSES
Operations 143,000 106,000 269,000 207,000
General and
administrative 390,000 321,000 897,000 700,000
Research and
Development 278,000 313,000 573,000 765,000
Selling and
Marketing 594,000 448,000 1,089,000 987,000
Other charges -- -- -- 689,000
Interest income
- net (8,000) (17,000) (17,000) (38,000)
Total costs and
expenses 1,397,000 1,171,000 2,811,000 3,310,000
OPERATING INCOME (LOSS) 344,000 (221,000) 718,000 (1,551,000)
OTHER INCOME (EXPENSE)
- NET -- 34,000 -- (265,000)
INCOME (LOSS) BEFORE
INCOME TAXES 344,000 (187,000) 718,000 (1,816,000)
INCOME TAX EXPENSE 10,000 -- 10,000 --
NET INCOME (LOSS) $334,000 ($187,000) $708,000 ($1,816,000)
NET INCOME (LOSS)
PER SHARE - BASIC $0.03 ($0.02) $0.06 ($0.16)
NET INCOME (LOSS)
PER SHARE - DILUTED $0.03 ($0.02) $0.06 ($0.16)
WEIGHTED AVERAGE COMMON
SHARES - BASIC 10,291,623 11,552,376 11,022,535 11,546,333
WEIGHTED AVERAGE COMMON
SHARES - DILUTED 10,575,733 11,552,376 11,188,712 11,546,333
Note to Media: FY 1998 amounts have been reclassified to be comparable
with FY 1999 amounts.
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MITEK SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31, Sept. 30,
1999 1998
ASSETS
Current Assets 4,656,000 4,317,000
Property and equipment - net 225,000 192,000
Other assets 677,000 1,627,000
TOTAL ASSETS 5,558,000 6,136,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities 1,341,000 1,800,000
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