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.
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® and Optika eMedia(tm) are registered trademarks or trademarks of Optika Inc. |
