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Mitek benefits from mobile deposit boom; raises $15 million on record earnings

09 May 2011  |  5418 views  |  0 D600 mobile

The popularity of mobile deposit technology among US banks and consumers has proven a boon for Mitek Systems, which has raised $15 million through a share sale after reporting record revenues and earnings.

The firm has closed a private placement of an aggregate of 2.9 million shares of common stock at $5.25 per share to select institutional investors, including Weintraub Capital Management and Philadelphia Financial. The company says it will use the proceeds to fund working capital and prepare for a listing on Nasdaq.

The share sale comes as Mitek reports $2.9 million in revenue for the second quarter of 2011, an 85% increase on the $1.5 million booked in the same quarter last year. Net income was $570,000, compared with $7,000 in the year-earlier.

President and CEO James DeBello says the company is experiencing increasing momentum in sales of its flagship Mobile Deposit application, with five of the nation's top 10 retail banks now signed on to deploy the software. These include new customers Bank of America and Capital One Financial, signed as a result of an agreement with NCR.

In April 2011, Mitek announced that an additional 26 banks have licensed Mobile Deposit, bringing the total number of financial institution customers to 40s.

"We continue to see an unprecedented level of interest in Mobile Deposit in our core banking channel and across the entire payments industry," says DeBello. "After success last year in partnering with the financial industry's top solutions providers, 2011 is the year deployment of Mobile Deposit is hitting its stride."

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