Will the Mitek patents still even be in effect in 6 months? If not, why protect them now?
Cut & paste from "The Economist" magazine dated March 8, 2014, Technology Quarterly section page 14, article "Stalking Trolls" (keyword for Google search too). The key is the second paragraph of this cut & paste:
"Numerous corporations have started using their portfolios of poorly defined software patents to prevent rivals from entering the market. Witness the series of lengthy legal disputes between Apple and Samsung. Too often, it seems, software patents operate not as an incentive for innovation, but as a barrier to entry and a tax on new-product development. This is not what patent law was intended to do. Although the USPTO has been mainly at fault, America’s courts have not helped...
As the Supreme Court now intends to review Alice v CLS Bank, it will finally confront the most fundamental of issues in patent law today: whether or not software patents are impermissibly abstract. A ruling is expected by July 2014.
Would it matter if software patents were judged too abstract to warrant patent protection? Despite Judge Moore’s misgivings, patent issuance is a poor measure of innovation. Patenting is strictly a metric of invention. Innovation is such a vastly different endeavour—in terms of investment, time and the human resources required—as to be virtually unrelated to invention.
Indeed, many innovators have argued that the electronics and software industries would flourish if companies trying to bring new technology (software innovations included) to market did not have to worry about being sued for infringing thousands of absurd patents at every turn. A perfectly adequate means of protecting and rewarding software developers for their ingenuity has existed for over 300 years. It is called copyright."
TISA Q3 2013 Press Release, October 30, 2013 :
"• Signed contract for several million dollar license fee and a per transaction fee to provide Fiserv, the largest provider of information technology services to the financial services industry worldwide, with TIS's mobile and flagship eFLOW(R) platforms"
I used to disagree with Orioles when he called you one of the Village Idiots, but now I know he was right.
I see your point, but think the technical differences stemming from on-phone data processing and phone-selected photography times are significantly larger than in the color of your socks or the connections of a CV joint.
I think another key point regarding MITK's litigation strategy is that MITK is not bothering to sue KFX or any of the other new entrants into this space. IMHO, MITK can see their litigation strategy is not successfully stopping new entrants and so they are trying to cut back the money they spend on lawyers, including on the TISA case. Sort of "go slow, don't spend money, and hope the cloud of litigation continues to scare away potential clients of the other entrants." Sure, you don't see it that way, fine, we'll find out eventually.
"Cover your short.........."
From a guy whining not even an hour ago on this thread about how "maybe there will be some intelligent communications on the board again (Like BEFORE the large short interest)", you sure take the cake. I'm not even going to waste my time detailing the money TISA has gotten from FISV. Look it up yourself or wallow in ignorance, I don't care.
Laserman, I seem to remember going around with you about this a year or more ago. MITK supporters seem to define Mitek patented technology as any idea to do something that Mitek does. That isn't what a patent is. Patents are very specific and can be worked around using a different approach.
TIS supporters have repeatedly made the case that TIS means and methods are significantly different that Mitek's. Huge companies with sophisticated lawyers (e.g. Fiserv, Amazon) don't seem to be concerned that their own products will be thrown into disarray by a patent decision against TIS.
Remember our conversation about how there are 8,000 active patents in the average new car, but somehow despite this more than one company makes cars, and the world is very happy about that because otherwise it would be an antitrust/gouging situation.
"Build a better mousetrap and the world will beat a path to your door", not "patent the first mousetrap and that's it for innovation".
lddr, good idea to talk to IR. Nice to hear the average SAAS deal is now 36 months. SAAS hurts now because it prevents the immediate recognition of a bigger licensing deal, but over the long run will help take the dreaded "lumpiness" out of results. But what I really like about it is that when the contractual deal period is over, the customer will still keep paying their SAAS subscription until they decide that they want to change their internal processes, which probably is easier said than done. And that's why IMHO Nakar said in the last conference call "we are motivating the sales team to sell SAAS", it is "important for our strategy".
I am currently thinking about sales force productivity in terms of multiplying the change in SAAS revenue by 10. For instance, in Q3 they had $284K in SAAS revenue and in Q4 they had $360K in SAAS revenue, so the difference is the amount sold in Q4. An increase of $76K of SAAS revenue in the quarter is equivalent in terms of sales force productivity to an additional $760K of licensing revenue in the quarter. Obviously that isn't true in terms of GAAP accounting. But it indicates the progress of the underlying business.
1. On Tuesday, the same day as TISA presented, 205 firms presented at the Roth Conference. 89, or 39%, did not chose to pay Roth to have their presentation webcasted. The biggest of those non-webcasted firms I noticed was Applied Materials (AMAT, with a $24 billion market cap). That TISA didn't webcast either is hardly scary. What do you think they'd have that would be so scary to say? Think they have breaking news to release without complying with Regulation FD? They only had their prior conference call the day before. Quit being so nervous about nothing.
2. The period right after a secondary stock offering is known as a time when shares can be manipulated. Anyone notice the number of shorts we've accumulated here recently? During a secondary, hedgies for instance can buy a block of stock and then manipulate it up and down by buying or shorting, yet never have to really stick their neck out over the risk of massive losses if the stock explodes up, because they are shorting against the box. (I think the same thing has happened with MITK.)
3. The initial discussion of SAAS revenues, in the Q2 conference call, was for a 12 to 24 month contract period. Subsequent discussions in the Q3 and Q4 conference calls have focused on a 10 quarter period, with discussion of a 24 to 36 month contract period. I think they have changed their contractual terms since the initial rollout and the 12 to 24 month period is simply out of date.
We know TISA is generating revenue in the US, over 10% of total during 2013, and we know they are signing deals through their partners. And so you want to whine that you don't hear that a specific deal is through a specific partner? Too bad
If there was no sales and profits in Open Scan and the others becoming a partner, why would Open Scan and the others be doing it?
John, I'm glad you're short because with logic like that you deserve to lose money.
Sales not rising? Q4'12: $7.35M, Q1'13: $6.75M, Q2'13: $6.37M, Q3'13: $7.91M, Q1'13: $8.03M.
Fiserv 20-25% of revenue? Even with your puffed-up guess of $3.1M, that is 10.7% of revenue.
You saw the 6 deals announced in Q1'14 and are sure they're all BS? Well, that's a compelling argument from someone who complains he doesn't know what is going on in the company.
No CEO? The company is being run by the same man who has for years, the largest stockholder. If he finally trimmed the fat, why should I complain.
You're poor at logic, bad at math, and it will be a pleasure to take your money! Thanks in advance.
1. TISA's patent situation is certainly a weak point. However, $18M in cash with no debt is hardly "no money". After all, TISA could probably buy a license from MITK for $500/month, like MITK is offering to every other developer. Certainly Fiserv, the big dog in the bank payment processing space, was not concerned about this issue when they integrated the TISA solution into the Fiserv product.
2. Revenue is rising, and recurring revenue is rising as a percentage of sales. Currently it is 24%. SAAS is less than that each quarter, but is contracted to go on for years.
3. TISA has announced 6 major deals this so far quarter (Q1). And we know they don't announce all their deals because the deal to license eFlow and MobiCheck at Barclays wasn't announced (though we can see the TIS logo on the Barclay's demo video).
4. "We don't know what's happening inside the company." Are you serious? What stock is there where you know what is going on inside the company?
Correct, it means nothing if you didn't pick up those shares then because of the changes in management and business models.
oh by the way, two years ago, March 11 2012, MITK was last quoted at $12.15. Down 59% since then (same management and mostly same business model). Your quotes from 16 years ago are probably as wrong as from two years ago, but I'm not checking them BECAUSE THEY MEAN NOTHING.
Sorry old man but I don't care about what happened with previously discarded business models under different management teams. As far back as I go is when I started comparing the companies, about two years ago.
Anyway, you seem to have missed the point of my post, which was hardly about the comparison.
Pre-earnings, PERI was $11.93. Now it $12.33, higher. So your statement that "the stock has given back the entire gains since then and is heading lower" needs a reality check.
Because the Village Idiots are over on the TISA board attacking TISA. Especially the beanieglows and the mayor of the VI's, stevie with tourette's syndrome. Well, I guess every poor man is looking for some cheap entertainment. Have fun guys.
But when will they realize that MITK's price drop is driven by worse financial results and expectations that priced into the stock a few years ago? Face it VI's, that's is why MITK is -50% in two years and TISA is +50% in two years, not all these idiotic posts on a YMB.
Don't believe it? Look what happens when I pull a bob and say I'm buying 20,000 shares of MITK! Not much, huh?
Sorry, tax loss selling occurs in late November and December as investors sell losers to lower their capital gains taxes for the year. But I would give your explanation an A+ for creativity.