Biometrics earnings in hand, Mitek plans common stock repurchase up to $15M
In a move the company says is reflective of the profitable growth of its biometric identity verification and mobile deposit business, Mitek is planning to buy back $15 million in outstanding common stock.
The move is partially intended to balance the impact of its recent $49 million acquisition of ID R&D, which boosted its portfolio of technologies for face and voice biometrics and passive liveness detection.
“Today’s announcement reflects our confidence in the Mitek business and successful execution of our multi-year growth strategy,” states Max Carnecchia, Mitek CEO. “Our ability to deliver profitable growth year over year enables us to invest in the business and begin returning capital to our shareholders. This repurchase program also allows us to offset the dilutive impact of our recent acquisition of ID R&D.”
As of March 31, 2021, Mitek held $219.5 million in cash and investments, and had approximately 43.1 million shares of common stock outstanding.
The stock repurchase has already commenced, and will expire June 30, 2022. Purchases under the program can be made through occasional open market transactions, block trades, 10b5-1 plans or privately negotiated transactions, depending on several factors. The plan does not constitute a commitment and can be amended at any time, Mitek notes.
Mitek also recently announced it will soon have a new CFO.