|Initiation of Research Coverage: Mitek Systems, Inc (Research Notes)|
CHICAGO, August 29, 2011 - William Blair & Company initiated research coverage of Mitek Systems, Inc., the leader in mobile-imaging applications using smartphone cameras for check deposits and bill payments, with an Outperform rating and Aggressive Growth company profile.
Analyst Bhavan Suri estimated that the company would generate GAAP EPS of $0.01 in fiscal 2011 and $0.14 in fiscal 2012.
"Mitek's mobile imaging applications use smartphone cameras to enable a variety of financial processes, including check deposit and bill payments," Suri said. "For example, consumers, using an app on their smartphones, can snap a picture of a check and have it automatically deposited into their bank account. With over 80 banks committed to deploying Mitek's solution, we believe it is well positioned to capture material share in the online banking imaging market, especially given the proliferation of smartphones."
"The market is growing rapidly, driven by increasing penetration of smartphones (we expect 114 million smartphones to be sold in the United States just this year) and greater use of applications as data costs decline," he added. "We peg the market opportunity at more than $2 billion for Mitek's broader set of applications. With more than 80 customers and a large distribution base (through partners such as Fiserv and Jack Henry), Mitek has a key first-mover advantage that puts it roughly 18-24 months ahead of competitors."