The bottleneck is inside and being paid away

Mitek Systems, Inc. (MITK) — this company's answers

The model's full reasoning — Q4 2017 call → NOWe need answer only YES or NO based on transcript. Need evaluate if management conveys that main thing standing between company and more business is company's own capability/capacity/delivery, and already spending to remove limit, with demand pressing. Need check transcript for evidence. The question asks: "On this call, does management convey that THE MAIN THING STANDING BETWEEN THE COMPANY AND MEANINGFULLY MORE BUSINESS RIGHT NOW IS THE COMPANY'S OWN CAPABILITY — its capacity, people, facilities, throughput, or ability to deliver — rather than a shortage of demand, AND that the company is ALREADY SPENDING REAL MONEY AND EFFORT to remove that internal limit, with the business waiting on the other side already visible today? Answer YES when management's own words convey... (1) LIVE DEMAND PRESSING IN: real business exceeds or presses against what company can currently produce, deliver, staff, install, or serve, grounded in actual current behavior (waiting buyers, stretched lead times, allocated output, work queued) rather than pipeline or market opportunity; (2) THE LIMIT IS THE COMPANY'S OWN: management identifies own capability as binding constraint; (3) REMOVAL ALREADY UNDERWAY: concrete expansion executing now... Need determine from transcript. Management discusses strong demand, growth, investments, but do they say they cannot serve demand due to own capacity? They mention "we continue to see strong market demand" and "we will continue to invest in this growth opportunity." They mention "we intend to use our balance sheet to grow both organically and through M&A" and acquisition of ICAR to extend coverage, broaden product portfolio, add R&D. But is there any statement that they have live demand pressing against capability? They talk about "we’re also working hard to expand our identity platforms capabilities" and "we’re very busy on the product developed front." They mention "we expect to get leverage from channel" and "we’ll be investing this year or already are investing in technology, customer success and sales and marketing, and a lot of that investment is going to be very front-end loaded, so we’re going after this market. We need resources to go do it." That suggests they are investing to go after market, but not necessarily that demand exceeds capacity.

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