John J Harland (NYSE:JH)
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Mitek Systems Announces Second Fiscal Quarter 2005 Results With
Improvements in Revenue and Gross Margin
POWAY, Calif., May 20 /PRNewswire-FirstCall/ -- Mitek Systems, Inc. (OTC:MITK)
(BULLETIN BOARD: MITK) (http://www.miteksystems.com/), a leading provider of
automated identity verification and intelligent recognition software, today
announced financial results for the second quarter and first six months of
fiscal 2005 ended March 31, 2005.
(Photo: http://www.newscom.com/cgi-bin/prnh/20041117/LAW022LOGO)
Net sales for the second quarter of fiscal 2005 were $1.8 million, compared
with $2.0 million in the same quarter last year, or $1.5 million on an adjusted
basis after the CheckQuest product line divestiture for the same quarter last
year. Net sales for the first quarter of fiscal 2005 were $1.3 million.
Gross margin for the second quarter of fiscal 2005 was 87 percent, compared
with 61 percent for the same quarter last year, or 85 percent on an adjusted
basis after the CheckQuest product line divestiture for the same quarter last
year. Gross margin for the first quarter of fiscal 2005 was 86 percent.
Operating loss for the second quarter of fiscal 2005 was $548,000 compared with
a loss of $813,000 for the same quarter last year and a loss of $800,000 for
the first quarter of fiscal 2005. Included in the operating loss are
additional legal and expert witness expenses of approximately $450,000
associated with the resolution of the dispute with BSM Software, Inc., as
reported by the Company on April 19, 2005, and further described below.
Net loss for the second quarter of fiscal 2005 was $799,000, or $0.07 per basic
and diluted share, compared with a net loss of $816,000 or $0.07 per basic and
diluted share, for the same fiscal quarter last year and a net loss of
$917,000, or $0.08 per basic and diluted share, for the first quarter of fiscal
2005. The difference in net loss from the operating loss was due primarily to
expenses associated with registering the securities underlying the previously
disclosed convertible debt instrument agreement entered into between the
Company and Laurus Master Fund, LLC on June 11, 2004. The Company's filing for
registration of these securities was declared effective on May 13, 2005.
Net sales for the first six months of fiscal 2005 were $3.1 million, compared
with $3.7 million in the same period last year, or $2.4 million on an adjusted
basis after the CheckQuest product line divestiture in the same period last
year.
Gross margin for the first six months of fiscal 2005 was 87 percent, compared
with 59 percent for the same period last year, or 82 percent on an adjusted
basis after the divestiture of the CheckQuest product line in the same period
last year.
Operating loss for the first six months of fiscal 2005 was $1.3 million,
compared with a loss of $1.9 million for the same period last year. The
improvement in the operating loss was primarily due to cost cutting measures
and the divestiture of the CheckQuest product line prior to the end of the 2004
fiscal year.
Net loss for the first six months of fiscal 2005 was $1.7 million, or $0.15 per
basic and diluted share, compared with a net loss of $1.9 million, or $0.17 per
basic and diluted share, for the same period of last year.
On April 19, 2005, the Company announced that it had received a final payment
of $1.0 million from Harland Financial Solutions, Inc., a subsidiary of John H.
Harland Company (NYSE:JH) related to the sale last July of the Company's
CheckQuest product line to Harland. A recent arbitration ruling on the
Company's dispute with BSM Inc. over the use of the Company's products and
intellectual property allowed the Company to complete the assignment of
CheckQuest software license rights to Harland and collect this final payment.
This gain will be reflected in the company's third quarter operating results.
Additionally, Mitek announced on May 10, 2005 that the Company and John H.
Harland Company closed the second and final round of a sale of Mitek's common
stock and warrants pursuant to the previously-disclosed Securities Purchase
Agreement entered into between the Company and Harland on February 22, 2005. In
this second round, Harland acquired 1,071,428 shares of Mitek's common stock
and 160,714 Mitek warrants for a purchase price of $750,000.
"Our second quarter and first half of 2005 results indicate the success of our
efforts to grow our revenues, improve our gross margins, and increase our
working capital for the launch of our new identity verification and intelligent
recognition products," Mitek's President and CEO James B. DeBello said. "The
results from the execution of our growth plan are encouraging."
About Mitek Systems
Mitek Systems (OTC:MITK) (BULLETIN BOARD: MITK) is an established global
leader in advanced image recognition software used by financial institutions
for identity verification and document processing. Sold to partners and
directly to end users, the Company's software is used in the processing of over
8 billion transactions per year. For more information about Mitek Systems,
contact the company at 14145 Danielson Street, Suite B, Poway, CA 92064;
858-513-4600 or visit http://www.miteksystems.com/.
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 launch of new products and future prospects of Mitek's growth. Actual
results could differ from such forward-looking statements. There can be no
assurance that Mitek will achieve results set forth herein. Mitek and Mitek
Systems are registered trademarks of Mitek Systems, Inc.
Contacts:
John R. Shaw Andrew McCaskill
Vice President, Marketing Media Contact for Mitek
858.513.4600 678.781.7210
Mitek Systems, Inc.
Statements of Operations
(Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
March 31, March 31,
2005 2004 2005 2004
NET SALES $1,772,000 $2,018,000 $3,072,000 $3,713,000
OPERATING COSTS
AND EXPENSES
Cost of sales 229,000 780,000 413,000 1,522,000
Operations 36,000 378,000 76,000 739,000
Selling and Marketing 623,000 495,000 1,203,000 1,122,000
Research and Development 347,000 658,000 717,000 1,167,000
General and
administrative 1,085,000 520,000 2,011,000 1,060,000
Total costs and
expenses 2,320,000 2,831,000 4,420,000 5,610,000
OPERATING LOSS (548,000) (813,000) (1,348,000) (1,897,000)
Interest and other income
(expense) - net (251,000) (3,000) (368,000) 7,000
LOSS BEFORE INCOME TAXES (799,000) (816,000) (1,716,000) (1,890,000)
INCOME TAX (EXPENSE)
BENEFIT -- -- -- (3,000)
NET LOSS ($799,000) ($816,000)($1,716,000)($1,893,000)
LOSS PER SHARE --
BASIC AND DILUTED ($0.07) ($0.07) ($0.15) ($0.17)
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES
OUTSTANDING -
BASIC AND DILUTED 11,841,862 11,369,942 11,613,186 11,316,861
Mitek Systems, Inc.
Condensed Balance Sheets
March 31, 2005 Sept 30, 2004
(unaudited) (audited)
ASSETS
Current assets $3,077,000 $3,503,000
Property and equipment -- net 106,000 119,000
Other assets 70,000 0
TOTAL ASSETS $3,253,000 $3,622,000
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities $3,291,000 $2,657,000
Long term liabilities 1,322,000 1,497,000
Total liabilities 4,613,000 4,154,000
Stockholders' deficit:
Common stock 12,000 11,000
Additional paid-in capital 10,956,000 10,070,000
Accumulated deficit (12,328,000) (10,613,000)
Total stockholder's deficit (1,360,000) (532,000)
TOTAL LIABILITIES AND
SHAREHOLDER'S DEFICIT $3,253,000 $3,622,000
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DATASOURCE: Mitek Systems, Inc.
CONTACT: John R. Shaw, Vice President, Marketing of Mitek Systems, Inc.,
+1-858-513-4600, ; or Andrew McCaskill, +1-678-781-7210,
, for Mitek
Web site: http://www.miteksystems.com/