Mitek Systems Facing Potential Delisting

Mitek Systems, Inc. (NASDAQ: MITK), a global leader in digital identity and fraud prevention, has announced that it received a staff determination from the Nasdaq Stock Market LLC, indicating non-compliance with Nasdaq listing rule 5250(c)(1) due to the failure to timely file its quarterly report on Form 10-Q for the quarter ended December 31, 2023. This notice serves as an additional basis for the delisting of the company's securities from Nasdaq, as Mitek remains delinquent in filing its Form 10-K for the year ended September 30, 2023.

In response to the staff determination, Mitek intends to file the Form 10-K and Form 10-Q as promptly as possible in order to regain compliance with the rule. The company has been subject to a mandatory panel monitor, which requires the staff to promptly issue a delisting determination if compliance with the rule is not maintained.

Max Carnecchia, CEO of Mitek, expressed the company's commitment to resolving the compliance issue, stating, "We are dedicated to addressing the filing delinquencies and restoring compliance with Nasdaq listing rules. Mitek remains focused on its mission to provide advanced identity verification technologies and global platform for digital access, and we are actively taking steps to rectify the situation."

The company's shares have moved 0.6% and are currently trading at a price of $12.1.

Mitek Systems, Inc. is trusted by 99% of U.S. banks for mobile check deposits and 7,900 of the world's largest organizations, offering advanced identity verification technologies and a global platform for digital access.

The full 8-K submission from Mitek Systems, Inc. is available here.

2018 2019 2020 2021 2022 2023
Revenue (k) $63,559 $84,590 $101,310 $119,797 $143,943 $173,661
Revenue Growth n/a 33.09% 19.77% 18.25% 20.16% 20.65%
Operating Margins -12% -5% 9% 11% 8% 13%
Net Margins -19% -1% 8% 7% 2% 5%
Net Income (k) -$11,807 -$724 $7,814 $7,978 $3,032 $9,160
Net Interest Expense (k) -$935 $602 $541 $5,129 $8,232 $8,769
Depreciation & Amort. (k) $615 $1,388 $1,504 $1,439 $1,401 $1,524
Earnings Per Share -$0.33 -$0.02 $0.18 $0.18 $0.07 $0.19
EPS Growth n/a 93.94% 1000.0% 0.0% -61.11% 171.43%
Diluted Shares (k) 38,247 41,828 43,897 46,155 45,634 46,473
Free Cash Flow (k) $1,319 $13,187 $23,319 $35,954 $25,225 $37,303
Capital Expenditures $4,307 $1,063 $803 $1,387 $1,126 $1,148
Current Ratio 1.93 2.48 3.78 5.75 3.32 3.32

Mitek Systems has an excellent current ratio of 3.32 and rapidly growing revenues and decreasing reinvestment in the business. Additionally, the company's financial statements display positive EPS growth and positive cash flows. Furthermore, Mitek Systems has weak operating margins with a positive growth rate.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.