Shares of Mitek Systems (NASDAQ:MITK), a company focused on mobile image capture and identity verification software, saw its stock take a hit on Thursday. As of 11:11 a.m. EDT, the stock was down 10.4%.
The stock's pullback follows Mitek's fiscal second-quarter results. But the decline is likely due to the company's decision to conclude its review of strategic alternatives rather than its quarterly results.
Mitek reported fiscal second-quarter revenue of $20 million, up 40% year over year. Non-GAAP earnings per share was $0.07, up from $0.06 in the year-ago quarter.
These results beat analysts' average estimate for revenue of $19.2 million and non-GAAP earnings per share of $0.05.
But the company's decision to no longer consider a buyout overshadowed these solid results.
"Over the past several months, our Board of Directors has led a process to engage with several interested parties to evaluate the relative benefits of various strategic alternatives, with a view to maximizing value for our shareholders," said Mitek CEO Max Carnecchia in the company's fiscal second-quarter earnings release. "Following a thorough review of the results, the Board of Directors determined that there were no offers that it deemed in the best interest of Mitek shareholders, and today, we are announcing that we have concluded this process."
With the strategic review in the rearview mirror, management will focus on its business. Carnecchia explained, "We continue to focus on maximizing the significant opportunities we see for Mitek in the marketplace and remain thoroughly committed to delivering shareholder value through operating and growing the business."
The company updated its outlook for full-year fiscal 2019 revenue, guiding for a top line between $84 million and $86 million, representing 32% to 35% year-over-year revenue growth. The low end of this range is up from previous guidance for revenue between $83 million and $86 million.