Mitek Systems Inc. (MITK) saw its loss widen to $0.61 million, or $0.02 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $0.32 million, or $0.01 a share. On the other hand, adjusted net income for the quarter stood at $1 million, or $0.03 a share compared with $1.32 million or $0.04 a share, a year ago.
Revenue during the quarter grew 25.19 percent to $9.27 million from $7.40 million in the previous year period. Gross margin for the quarter expanded 311 basis points over the previous year period to 90.39 percent. Operating margin for the quarter stood at negative 7.25 percent as compared to a negative 4.62 percent for the previous year period.
Operating loss for the quarter was $0.67 million, compared with an operating loss of $0.34 million in the previous year period.
Commenting on the results, James DeBello, chairman and chief executive officer of Mitek, said: "Our solutions are playing a key role globally in the digital transformation of money transferors, such as our recently announced deal with MoneyGram, as well as banks, credit card issuers, payments processors, lenders, and other companies. These organizations must comply with ever increasing Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations or face hefty fines for noncompliance. With our market momentum, competitive advantages and solid balance sheet, we are well positioned for continued growth in this large and growing market."
Working capital increases sharply
Mitek Systems Inc. has recorded an increase in the working capital over the last year. It stood at $35.17 million as at Dec. 31, 2016, up 52 percent or $12.03 million from $23.14 million on Dec. 31, 2015. Current ratio was at 6.80 as on Dec. 31, 2016, up from 4.13 on Dec. 31, 2015.
Days sales outstanding went down to 47 days for the quarter compared with 51 days for the same period last year.
At the same time, days payable outstanding went down to 151 days for the quarter from 154 for the same period last year.
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