EXCLUSIVE: Mitek's Bullish Developments Into Q3 Earnings

After a difficult month in June, investors in Mitek Systems may be looking to earnings later this week for some relief. Mitek, a company that develops and sells mobile capture and identification software to businesses, was the target of a negative early-June report by StreetSweeper, a well-known short seller. Mitek shares subsequently fell 15 percent on the report, which mainly highlighted weak IP assets, increased competition and a large price-to-earnings ratio. Mitek's CFO Russell Clark subsequently spoke with Benzinga, and refuted many points made in the StreetSweeper article. Clark said the company's "business continues to do well." This confidence was echoed by Roth Capital, which then released a note that said the short report "pullback creates buying opportunity." Three Bullish Developments Heading Into Earnings Sources familiar with Mitek say they have entered into nationwide agreement with a large pharmaceutical retail chain Sources familiar with Mitek say Mobile Verify business is now doing over ha half million mobile verifications per month. Recent IP win against Rothschild Mobile Imaging Innovations over 4 patents. When asked about the state of Mitek moving forward, William Blair's Bhavan Suri told Benzinga that Mitek's cloud business is expanding rapidly and could become 50 percent of revenue in the next 2-3 years. Combining the mobile ID growth, with the removal of the Rothschild legal overhang, and Thursday's earnings seem encouraging. Mitek shares are still down from their $9.10 level prior to the StreetSweeper's June 2nd report, but July has been a bounce-back month. Currently, shares of Mitek are up 2.81% at $8.06 on Wednesday's trading session. Benzinga reached out to Mitek for comment, but have not responded at publish of this article.