Mitek Systems Reports Profit for Third Quarter of Fiscal 2008

SAN DIEGO, Aug. 5 /PRNewswire-FirstCall/ -- Mitek Systems, Inc.
(OTC Bulletin Board: MITK) (http://www.miteksystems.com), an innovator of
image analytics and pattern recognition software, today announced financial
results for the third quarter of fiscal 2008 ended June 30, 2008.
(Logo: http://www.newscom.com/cgi-bin/prnh/20041117/LAW022LOGO)
Net sales were approximately $1.7 million for the third quarter of fiscal
2008 compared with $1.5 million for the third quarter in fiscal 2007. Gross
margin for the third quarter of fiscal 2008 was 79%, compared with 87% for the
same quarter last year. Total costs and expenses including cost of goods sold
for the third quarters of fiscal 2008 and 2007 were $1.6 million and $1.4
million respectively.
Operating income for the third quarter of fiscal 2008 was $40,000,
compared to an operating income of $85,000 for the same quarter last year.
Net income for the third quarter of fiscal 2008 was $42,000 or $0.0 per
basic and diluted share, compared with a net income of $88,000, or $0.01 per
basic and diluted share, for the same quarter last year.
The Company ended the third quarter of fiscal year 2008 with cash and cash
equivalents of $1.4 million, compared with $1.9 million at the end of the same
quarter last year. At the end of the third quarter in fiscal year 2008, the
Company had working capital of approximately $1.4 million and stockholders'
equity of $1.6 million compared with working capital of $1.7 million and
stockholders' equity of $1.8 million at the end of the third quarter of fiscal
2007.
"We are pleased with the third quarter results and our continued progress
innovating our mobile imaging application." said James DeBello, president and
CEO, Mitek Systems. "We continue to invest in Mobile Deposit while remaining
debt-free and have received initial industry accolades, being recently named
one of 'Ten Technology Companies to Watch' by Bank Technology News."
The Company will host a conference call today at 11:00 a.m. Eastern Time
(10:00 a.m. Central Time/8:00 a.m. Pacific Time) to discuss its third quarter
fiscal 2008 results. The call can be accessed by calling 888-494-6099. The
call can also 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.
Analysis of the Company's financial statements is available within the
Management's Discussion and Analysis section of the Form 10-QSB for the
quarter ended June 30, 2008, filed with the SEC and available on the SEC's
website at http://www.sec.gov. A printable copy of the financial report will
be posted on the Company's website at http://www.miteksystems.com.
About Mitek Systems
Mitek Systems (OTCBB: MITK; http://www.miteksystems.com) is an innovator
of image analytics and pattern recognition technologies used by financial
institutions, life science companies, and government agencies. The company
develops and markets the most comprehensive suite of intelligent character
recognition software used to test, clean, read and authenticate imaged checks,
documents and objects, and its software is used to process more than nine
billion transactions per year. For more information about Mitek Systems,
contact the company at 858-503-7810 or visit http://www.miteksystems.com.
Forward Looking Statement
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,
future financial and operating results, statements relating to the launch of
new products, entry into licensing agreements, and future prospects of Mitek's
recurring royalties growth and sales volume, including involving ImageNet
Payment or ImageNet Mobile Deposit. 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:

News Media
Rogers & Cowan
Jason Magner
310-854-8128
jmagner@rogersandcowan.com

Investors
Mitek Systems Inc.
Tesfaye Hailemichael
858-503-7810
tesfaye@miteksystems.com

MITEK SYSTEMS, INC.
CONDENSED BALANCE SHEET
(Unaudited)

June 30, June 30,
2008 2007

ASSETS

Current assets $2,901,000 $3,117,000
Property and equipment - net 79,000 62,000
Software development costs 124,000 -
Other assets 29,000 30,000

TOTAL ASSETS $3,133,000 $3,209,000

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities $1,501,000 $1,382,000
Long term liabilities 53,000 40,000
TOTAL LIABILITIES 1,554,000 1,422,000

Stockholders' equity:
Common stock 17,000 17,000
Additional paid-in capital 14,765,000 14,545,000
(Accumulated deficit) (13,203,000) (12,775,000)
Total stockholder's equity 1,579,000 1,787,000

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $3,133,000 $3,209,000

MITEK SYSTEMS, INC.
STATEMENTS OF OPERATIONS
(Unaudited)

THREE MONTHS ENDED NINE MONTHS ENDED
June 30, June 30,
2008 2007 2008 2007

NET SALES $1,681,000 $1,459,000 $4,206,000 $4,199,000

OPERATING COSTS AND EXPENSES:
Cost of sales 358,000 194,000 676,000 459,000
Operations 23,000 21,000 72,000 65,000
Selling and marketing 413,000 312,000 1,093,000 862,000
Research and development 432,000 437,000 1,464,000 1,434,000
General and administrative 415,000 410,000 1,367,000 1,797,000

Total costs and expenses 1,641,000 1,374,000 4,672,000 4,617,000

OPERATING INCOME (LOSS) 40,000 85,000 (466,000) (418,000)

Other income - net 2,000 3,000 7,000 2,000

INCOME (LOSS) BEFORE
INCOME TAXES 42,000 88,000 (459,000) (416,000)

PROVISION FOR INCOME TAXES - - (3,000) (1,000)

NET INCOME (LOSS) 42,000 88,000 (462,000) (417,000)

NET INCOME (LOSS) PER
SHARE - BASIC 0.00 0.01 (0.03) (0.02)

WEIGHTED AVERAGE NUMBER OF
COMMON SHARES
OUTSTANDING - BASIC 16,751,137 16,751,137 16,751,137 16,750,408

NET INCOME (LOSS) PER
SHARE - DILUTED 0.00 0.01 (0.03) (0.02)

WEIGHTED AVERAGE NUMBER OF
COMMON SHARES
OUTSTANDING - DILUTED 16,751,137 16,809,426 16,751,137 16,750,408

SOURCE Mitek Systems, Inc.

News Media, Jason Magner of Rogers & Cowan, +1-310-854-8128,
jmagner@rogersandcowan.com, for Mitek Systems, Inc.; or Investors, Tesfaye
Hailemichael of Mitek Systems, Inc., +1-858-503-7810,
tesfaye@miteksystems.com