Mitek Systems, developer of advanced document image capturing software for use with camera-equipped mobile phones, today announced financial results for the second quarter of fiscal 2010 ended March 31, 2010, showing a significant improvement in both revenue and net income.
Net sales for the second quarter increased 71% to $1,517,000, compared with $888,000 for the same quarter last year. In addition, net income for the second quarter entered positive territory, jumping from a net loss of $238,000 in the same quarter last year to a positive $7,000 this year. (Net income for the period was decreased by non-cash expenses totaling $268.000, including stock-based compensation expense of $191,000 and accretion of a discount on convertible debt of $77,000.)
Mitek ended the second quarter with cash and cash equivalents of approximately $1,415,000, compared to $775,000 at the end of the same quarter last year. The company reported working capital of $904,000, and a current ratio of 1.52 as of March 31, 2010, compared to working capital of $27,000 and current ratio of 1.02 at the same time last year.
Mitek Systems President and CEO, James DeBello, said of the results, “We are pleased that our improved performance has allowed us to continue investing in new mobile imaging technologies important to our future growth. Recent reports from leading industry analysts indicate growing market acceptance for our flagship Mobile Deposit. We are actively engaged with several large partners, banks and payments processors in Mobile Deposit integration projects. As a result, we believe that we have created a meaningful time to market advantage and the gold standard for mobile check deposit that provides an exceptional user experience and processing accuracy.”
Significant developments within the quarter included the signing of a license agreement with The Bancorp Bank, a wholly owned subsidiary of The Bancorp Inc., to expand its remote deposit gathering capabilities, by enabling customers to deposit personal and business checks via their smartphone cameras using Mitek’s Mobile Deposit® application. The company also signed an OEM agreement with NetDeposit, a leading provider of distributed check capture solutions, to provide mobile deposit capabilities to its financial institution and merchant clients, by integrating Mitek’s Mobile Deposit® application into NetDeposit’s NetCapture suite of remote deposit capture solutions.
Through its ongoing development efforts, Mitek Systems has created a comprehensive suite of intelligent character recognition software used to test, clean, authenticate and extract data from imaged checks, documents, and objects. The company’s vision is to leverage the capabilities of the cell phone camera for a suite of mobile applications that provide practical solutions for every business person. Branded Oomph, for “Office on My Phone,” these business applications are created specifically for smartphones equipped with cameras. Mitek’s software is used to process more than 10 billion items per year.
For more information, visit the company’s website at www.miteksystems.com.
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