Mitek slips to Q4 net loss

Source: Mitek Systems

Mitek Systems (OTC Bulletin Board: MITK), an innovator of image analytics and pattern recognition software, today announced financial results for the fourth quarter of fiscal 2008 and fiscal year ended September 30, 2008.

Net sales for the fourth quarter of fiscal 2008 were $1.0 million, compared with $1.4 million in the same quarter last year. Gross margin for the fourth quarter of fiscal 2008 was 78 percent, compared with 87 percent for the same quarter last year.

Net loss for the fourth quarter of fiscal 2008 was $287,000 compared with a net profit of $34,000 for the same fiscal quarter last year.

Net sales for fiscal 2008 were $5.2 million, compared with $5.6 million in the same period last year. Gross margin for fiscal 2008 was 83 percent, compared with 89 percent for fiscal 2007.

Net loss for fiscal 2008 was $749,000 or $0.04 per basic and diluted share, compared with a $384,000, or $0.02 per basic and diluted share, for fiscal 2007.

The Company ended fiscal year 2008 with cash and cash equivalents of $1.3 million, compared with $2.1 million at the end of fiscal year 2007. As of September 30, 2008, the Company had working capital of approximately $919,000 and stockholders' equity of $1.3 million compared with $1.8 million and $1.9 million respectively at the end of fiscal 2007.

"Mitek is working through a difficult economic climate in which enterprise software sales have slowed, coupled with a year in which we invested in our future by applying our proven core technology to create the first mobile camera phone application using Mitek's proprietary image analytics for the payments industry," said James DeBello, president and CEO, Mitek Systems.

"In 2008 we successfully launched ImageNet Mobile Deposit, which received rave reviews and helped us be named one of 'Ten Technology Companies to Watch' by Bank Technology News," added DeBello. "We are looking forward to additional mobile applications of our industry leading core technology, utilizing the camera on mobile phones as a useful business tool for mobile professionals."

Key company milestones and developments include:
Product-related Announcements

  • Mitek developed ImageNet Mobile Deposit(TM), the first mobile product to utilize Mitek's industry-leading image analytics and pattern recognition software and the first mobile banking software that allow banks to accept paper check deposits and bill payments via camera-equipped mobile phones. ImageNet Mobile Deposit supports the payments industry standards for remote check deposit, and extends mobile payments and deposit capabilities to millions of consumers who use camera-equipped mobile phones such as the BlackBerry Bold and Apple iPhone.
  • Mitek launched ImageNet Photo and Video, pattern recognition technology that instantly reads, extracts and analyzes data from digital photos and video images.
  • Mitek was awarded its fourth and fifth patents, no. 7,249,711 and 7,430,310, for unique encoding technology, which more securely detects fraudulent signatures as well as helps prevent signature theft.
  • Mitek shipped its first remote deposit and remittance toolkit, ImageNet Payment for Remote Remit, which automatically identifies and dynamically extracts data from checks, coupons or other related documents.
  • Customer and Partnership Announcements
  • Mitek announced APS Technology Group, a leading supplier of vision- based optical character recognition (OCR) and automation systems for marine and intermodal container terminals, as a new customer that purchased and integrated ImageNet Photo and Video into its Container OCRTM system.
  • Mitek signed original equipment manufacturer (OEM) agreement with AnyDoc Software, an award-winning developer of document and data capture technology. The agreement adds Mitek's specialized ImageNet(TM) Payments check engine platform to AnyDoc's Infiniworx solution for automated remittance, check, and Check 21 processing.
  • Mitek signed an OEM agreement with J&B Software, Inc., a premier provider of enterprise-wide transaction, document management and payment system solutions, for Mitek's ImageNet Mobile Deposit(TM) application. The application will add mobile Remote Deposit Capture (RDC) functionality for J&B's Remote Image Capture solution.

"We believe that our partnerships with top resellers of financial software and mobile banking platforms will help establish an indirect sales model, making applications like Mobile Deposit easily available for financial institutions to integrate into their existing mobile banking platform," said DeBello. "Customers, partners, industry analysts and the media all recognize that adapting our core technology for the mobile phone is a smart move for the future. We are looking forward to 2009 as we continue the advancement of our products."

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