Losses Throw Cold Water On Mitek’s Mobile Deposit Deal With Chase

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SAN DIEGO – Mitek Systems, developer of a patented system for remote deposit over smartphones, announced a major deal with JP Morgan Chase yesterday under which the bank giant will deploy Mitek’s flagship Mobile Deposit solution in the next version of its widely advertised mobile check-deposit application.

The news helped brighten somewhat the release of the company’s first quarter financials, which showed losses grew more than three-fold to $801,000, compared to a $223,000 loss for the same quarter last year, even as revenues surged by 21% to $1.4 million for the first quarter.

The fiscal 2011 first quarter’s net loss resulted primarily from non-cash expenses totaling $712,000 that included $384,000 of a one-time, non-cash interest expense resulting from the conversion of the company’s long term debt into equity, $234,000 of non-cash, stock-based compensation expense related to annual performance stock option grants to all employees.

During the fiscal first quarter, Mitek introduced Mobile Photo Bill Pay, the industry’s first mobile payments app that enables users to pay bills simply by snapping a photo of a paper bill or invoice with their smart phone camera without writing a check or setting up a template.

Mitek said it currently is engaged in discussions with major financial institutions and bill payment providers to pilot Mobile Photo Bill Pay.

 

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