Mitek Systems Reports Operating Results for Fiscal 2009

Company Launches Oomph Mobile Product Line for Smartphones and Secures Growth Financing

 

SAN DIEGO, Calif., December 29, 2009 -- Mitek Systems, Inc. (OTC: MITK.OB; www.miteksystems.com), an innovator of advanced image analytics and mobile document capture applications for smartphones, today announced financial results for the fourth quarter of fiscal 2009 and fiscal year ended September 30, 2009.

Net sales for the fourth quarter of fiscal 2009 were $804,000, compared with $1,024,000 in the same quarter last year. Gross margin for the fourth quarter of fiscal 2009 was 81 percent, compared with 78 percent for the same quarter last year.

Net loss for the fourth quarter of fiscal 2009 was $328,000 compared with a net loss of $287,000 for the same fiscal quarter last year.

Net sales for fiscal 2009 were $3,600,000, compared with $5,200,000 in the same period last year. Gross margin for fiscal 2009 was 82 percent, compared with 83 percent for fiscal 2008.

Net loss for fiscal 2009 was $1,322,000 or $0.08 per basic and diluted share, compared with a net loss of $749,000, or $0.04 per basic and diluted share, for fiscal 2008.

The Company ended fiscal year 2009 with cash and cash equivalents of $674,000, compared with $1,300,000 at the end of fiscal year 2008. As of September 30, 2009, the Company had negative working capital of approximately $280,000 and stockholders' equity of $126,000 compared with working capital of approximately  $919,000 and stockholders' equity of $1,300,000 at the end of fiscal 2008.

Recently, Mitek announced that it had completed a financing transaction, principally with institutional investors, to generate gross proceeds to Mitek of approximately $1,000,000.

"Despite a difficult economic climate in which enterprise software sales have slowed, Mitek has chosen to invest in its future by applying its proven core technology to create the first smartphone camera applications using Mitek's proprietary image analytics," said James DeBello, president and CEO, Mitek Systems. "As we continue to expand into new markets, external funding gives us more flexibility to support new products and expand our share of the fast growing market for smartphone apps, primarily our flagship Mobile Deposit product."

Over the past year Mitek has built and distributed a family of innovative Oomph apps that unlock the potential of the millions of camera-equipped mobile phones sold each year. The apps include Mobile Deposit® which allows users to deposit checks via camera-equipped mobile phones, Mobile Phax(TM) which allows a user to take a photo of a document or page and send it to a fax machine or as a PDF to an email address, and Mobile Receipt(TM) which enables professionals on the go to create and submit expense reports with receipt photos taken with their smartphone.

Oomph products are available for the Apple iPhone and several models of BlackBerry smartphones from RIM. Users can purchase Oomph products from the Apple App Store and RIM's BlackBerry App World. Mobile Receipt became the Top Paid Financial App on the Apple App Store during the month of September. The Company plans to introduce additional smartphone camera applications in 2010 utilizing its industry leading mobile imaging technology.

Key company milestones and developments include:

Product-related Announcements

Mitek developed and launched Mobile Receipt™, the first mobile product to utilize Mitek’s industry-leading

mobile image analytics and pattern recognition software known as IMagePROVETM to process images of

receipts via camera-equipped mobile phones. Mobile Receipt provides expense management capabilities to

millions of consumers who use camera-equipped mobile phones such as the BlackBerry Bold and Apple

iPhone.

Mitek developed and launched Mobile Phax. With Mobile Phax, users simply take pictures of documents

using their mobile phone, and the app turns them into high-quality images that are printer-friendly and can

be sent to a fax machine or an email address.

• Mitek was awarded its sixth patent for unique encoding technology that more securely detects fraudulent

signatures as well as helps prevent signature theft.

Customer and Partnership Announcements

• Mitek signed OEM agreements for its Mobile Deposit™ application with Fiserv, NCR, J&B Software, a 3i

Infotech Company, and RDM, all leading industry providers of technology and systems integration to banks

and credit unions. Combined, these OEM partners have existing sales relationships with all of the nation’s

leading financial institutions.

• Mitek and mFoundry, a leading provider of mobile banking and payments solutions, demonstrated the first

mobile deposit capabilities on a mobile banking platform by integrating Mobile Deposit into the mFoundry

iPhone mobile banking application.

• Mitek announced an OEM agreement with Clairmail, a leading mobile banking and payments solution

provider, to integrate Mitek’s Mobile Deposit functionality into Clarimail’s mobile banking and payments

platform which is used to power the mobile banking services of many of the nation’s leading financial

institutions.

• Mitek’s Mobile Receipt became the Top Paid Financial App on the Apple App Store during September 2009.

"We believe that our OEM partners will help establish an indirect sales model, making applications like Mobile

Deposit more easily available for banks to integrate into their existing mobile banking platform or offer to their

business clients as an extension to RDC," 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," added DeBello,

"and we are looking forward to 2010 as we continue to advance our products."

Analysis of the Company's financial statements is available within the Management's Discussion and Analysis section

of the 2009 Annual Report on Form 10-K, which will be posted on the Company's website at www.miteksystems.com.

A printed copy of the 10-K is also available from the Company upon request. The Company's Annual Report on Form

10-K will be available, when filed, on the SEC's website at www.sec.gov.

About Mitek Systems

Mitek Systems (OTC: MITK.OB; www.miteksystems.com) is an innovator of advanced image analytics and mobile

document capture applications for smartphones. For over twenty years, the Company has developed a

comprehensive suite of intelligent character recognition software used to test, clean, authenticate and extract data

from imaged checks, documents and objects, and its software is used to process more than ten billion transactions

per year. For more information about Mitek Systems, contact the Company at 858-503-7810 or visit

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 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:

Fred Hutton

Corporate Controller

(858) 503-7810

fhutton@miteksystems.com