SAN DIEGO, Feb. 14 /PRNewswire-FirstCall/ -- Mitek Systems, Inc.
(OTC:MITK) (http://www.miteksystems.com/), a leading provider of
Image Analytics and intelligent character recognition software,
today announced financial results for the first quarter of fiscal
2006 ended December 31, 2005. (Logo:
http://www.newscom.com/cgi-bin/prnh/20041117/LAW022LOGO ) Net sales
for the first quarter of fiscal 2006 were $1.5 million, compared
with $1.3 million in the same quarter last year. Gross margin for
the first quarter of fiscal 2006 was 73 percent, compared with 86
percent for the same quarter last year. The reduction in gross
margin is due to increased revenue from software development
services which has a higher cost of sales component. Operating loss
for the first quarter of fiscal 2006 was $168,000 compared with a
loss of $800,000 for the same quarter last year. Net loss for the
first quarter of fiscal 2006 was $472,000 or $0.03 per basic and
diluted share, compared with a net loss of $918,000, or $0.08 per
basic and diluted share, for the same quarter last year. A
significant portion of the net loss for the first quarter of fiscal
2006 is attributed to non-cash charges totaling $288,000 arising
from the expensing of unamortized beneficial conversion charges
associated with the conversion of $850,000 of the Company's
convertible note into equity. The Company incurred beneficial
conversion charges of $87,000 for the same quarter last year. The
Company ended the first quarter of fiscal year 2006 with cash and
cash equivalents of $1.8 million, compared with $1.4 million at the
end of the same quarter last year. As of December 31, 2005, the
Company had working capital of approximately $1.2 million and
stockholders' equity of $1.4 million compared with ($123,000) and
($1.3) million, respectively, at the end of the first quarter of
fiscal 2005. The principal balance under its convertible debt at
the end of the first quarter of fiscal 2006 was $659,000, net of
unamortized financing costs of $130,000, a reduction of $1.4
million from the same quarter last year, also net of unamortized
financing cost. Total liabilities reported at the end of the first
quarter of fiscal year 2006 decreased by $2.4 million compared to
the same quarter last year, primarily as a result of the conversion
of the convertible debt. "We are executing our long term strategy
and continue to invest in perfecting our innovative identity
validation products," said James DeBello, President and CEO.
"During this quarter, we significantly improved our balance sheet
and financial performance. Revenue improved 17% and total operating
costs decreased 20%. We also materially reduced our long term debt,
strengthened our working capital and added to stockholder's equity.
As a result, we believe we are well-positioned for future growth."
"During the quarter we announced several milestone achievements
including the delivery of our software that powers John H. Harland
Company's (NYSE:JH) newly released Validify(TM) solution to combat
identity theft and check fraud," added DeBello. "Harland has
mobilized its sales force and will deliver the solution to
financial institutions, for which Mitek will receive recurring
royalties based on Harland's sale of Validify printed checks. In
addition, Mitek retains the exclusive rights to license the
validation software to vendors of ATM machines, Point of Sale
systems, kiosks, scanners, and other Check 21 compliant devices
used to process check payments." "We believe that our unique
capability to detect signature forgeries and counterfeits is also
valuable in other markets," said DeBello. "We are actively pursuing
opportunities in the healthcare and pharmaceutical industries and
with government agencies where our technology could benefit
compliance and protect against fraud. In addition, we will continue
to explore opportunities to acquire complementary technologies or
businesses to build shareholder value." The Company will host a
conference call tomorrow at 11:00 a.m. Eastern Time (10:00 a.m.
Central Time/8:00 a.m. Pacific Time) to discuss its first quarter
fiscal 2006 results. The call can be accessed live on the Investor
Relations section of the company's Web site at
http://www.miteksystems.com/, and a replay will be available
approximately two hours after the completion of the call through
March 15, 2006. Analysis of the Company's financial statements is
available within the Management's Discussion and Analysis section
of the Form 10-QSB filed with the SEC and available on the SEC's
website at http://www.sec.gov/. A printed copy of the financial
report will be posted on the Company's website at
http://www.miteksystems.com/. About Mitek Systems Mitek Systems
(OTC:MITK) (http://www.miteksystems.com/) is a global leader in
Image Analytics and intelligent character recognition products used
by financial institutions to detect fraud and improve customer
service. The Company also develops and markets the most
comprehensive suite of intelligent character recognition software
used to test, clean, read and authenticate imaged documents. 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 8911
Balboa Avenue, Suite B, San Diego, CA 92123; 858-503-7810 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 entry
into licensing agreements and future prospects of Mitek's recurring
royalties growth and sales volume. 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:
Tesfaye Hailemichael Chief Financial Officer 858.503.7810 Mitek
Systems, Inc. Condensed Balance Sheet (Unaudited) December 31,
December 31, 2005 2004 ASSETS Current assets $2,787,000 $2,572,000
Property and equipment - net 109,000 109,000 Other assets 138,000
21,000 TOTAL ASSETS $3,034,000 $2,702,000 LIABILITIES AND
STOCKHOLDERS' EQUITY Current liabilities $1,602,000 $2,696,000 Long
term liabilities 2,000 1,318,000 TOTAL LIABILITIES 1,604,000
4,014,000 Stockholders' equity: Common stock 16,000 11,000
Additional paid-in capital 13,527,000 10,207,000 (Accumulated
deficit) (12,113,000) (11,530,000) Total stockholder's equity
1,430,000 (1,312,000) TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$3,034,000 2,702,000 Mitek Systems, Inc. Statements of Operations
Three Months Ended (Unaudited) December 31, 2005 2004 NET SALES
$1,521,000 $1,300,000 OPERATING COSTS AND EXPENSES: Cost of sales
410,000 183,000 Operations 21,000 41,000 Selling and marketing
399,000 580,000 Research and development 327,000 370,000 General
and administrative 532,000 927,000 Total costs and expenses
1,689,000 2,101,000 OPERATING LOSS (168,000) (801,000) Other income
(expense) net (304,000) (117,000) LOSS BEFORE INCOME TAXES
(472,000) (918,000) PROVISION FOR INCOME TAXES -- -- NET LOSS
$(472,000) $(918,000) NET LOSS PER SHARE - BASIC & DILUTED
($0.03) ($0.08) WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING - BASIC & DILUTED 15,018,703 11,389,481
http://www.newscom.com/cgi-bin/prnh/20041117/LAW022LOGO
http://photoarchive.ap.org/ DATASOURCE: Mitek Systems, Inc.
CONTACT: Tesfaye Hailemichael, Chief Financial Officer of Mitek
Systems, Inc., +1-858-503-7810, Web site:
http://www.miteksystems.com/
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