SAN DIEGO – Mitek Systems, creator of popular mobile remote deposit capture technology, reported a $2.8 million loss for the fiscal second quarter yesterday, as it presses a patent dispute with its one-time customer USAA over the technology.
Shares of Mitek plunged 50% yesterday to close at $2.90 on the Nasdaq.
Mitek reported a 58% decline in second quarter revenues to $1.2 million, compared to the same period last year. The company reported a $2.8 million loss for the quarter and for the first six months of its fiscal year.
In competing suits filed in federal court in Texas, Mitek and USAA claim they own the patent to mobile RDC technology.
Mitek said the mobile RDC technology has been adopted by five of the top eight retail banks. “We are focused on expanding our product offerings, with Mobile Photo Bill Pay and others, to satisfy customer demand,” said Mitek President James DeBello. “In parallel, we are pursuing partnerships in new market segments, such as the prepaid market, where we can leverage Mitek’s unique position to maximize value for our stakeholders.”
“Despite a challenging second quarter, Mitek has significant strengths that we will leverage to improve our financial performance. We have deep technology expertise, industry-leading market share for mobile deposit with 315 of the nation’s top financial institutions and a strong and growing patent portfolio,” DeBello said.
