ITEX Announces Results for Second Quarter of Fiscal Year 2012

News provided by

ITEX Corporation

Mar 08, 2012, 05:23 ET

BELLEVUE, Wash., March 8, 2012 /PRNewswire/ -- ITEX Corporation (OTCBB: ITEX), The Membership Trading Community(SM), a leading marketplace for cashless business transactions in North America, today filed its Form 10-Q with the Securities and Exchange Commission and announced results for its fiscal 2012 second quarter ended January 31, 2012.

"Our two core business revenue streams, transaction fees and association fees, both increased 2% in the quarter compared to the same three month period last year, and increased 3% and 2%, respectively, for the six month period ended January 31, 2012 compared to the same period last year.  Operational income was 20% higher than last year's second quarter, and net income increased 65% for the six month period ended January 31, 2012 compared to the same period last year, primarily due to the divestiture of two corporate owned offices and an increase in interest income. All in all a very good quarter and solid results for the first two quarters of fiscal 2012," stated Steven White, Chairman and CEO.

Second Quarter 2012 Highlights

  • Revenue of $4.229 million compared to $4.417 million in the same period last year
  • Income from operations of $283,000 compared to $235,000 in the same period last year
  • Cash at end of period increased to $5.807 million from $5.386 million on July 31, 2011
  • Stockholder equity increased to $15.150 million from $14.758 million on July 31, 2011
  • Paid a $0.04 per share quarterly cash dividend in December.

Subsequent Event

On February 24, 2012, the Board of Directors of ITEX Corporation declared a quarterly cash dividend of $.04 per share payable on March 20, 2012, to stockholders of record as of the close of business on March 9, 2012.

About ITEX

ITEX, The Membership Trading Community(SM), is a leading marketplace for cashless business transactions. Members increase sales through an exclusive distribution channel managed by our broker and franchise network, by utilizing ITEX dollars to exchange goods and services.   We generate revenue by charging members percentage-based transaction fees and association fees. ITEX is headquartered in Bellevue, WA.  We routinely post important information on the investor relations portion of our website.  For more information, please visit www.itex.com.

Important Additional Information

ITEX Corporation, its directors, its nominees for director and certain of its officers and employees are deemed participants in the solicitation of proxies from stockholders in connection with its annual meeting of stockholders to be held May 14, 2012. Information concerning these participants is available in ITEX's preliminary proxy statement filed with the Securities and Exchange Commission on March 6, 2012, as amended and supplemented. ITEX plans to file a definitive proxy statement with the SEC and may file other proxy solicitation material in connection with the solicitation of proxies for the annual meeting. Investors and stockholders are advised to read the preliminary proxy statement, which is available now, and the definitive proxy statement and other relevant documents filed with the SEC when they become available, because they will contain important information. Investors and stockholders may obtain, free of charge, copies of the proxy statement and any other documents filed by ITEX with the SEC in connection with the annual meeting of stockholders at the SEC's website at www.sec.gov or at ITEX's website at www.itex.com.

ITEX CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)





January 31, 2012

July 31, 2011

(unaudited)

ASSETS


Current assets:


    Cash and cash equivalents

$                  5,807

$                5,386

    Accounts receivable, net of allowance of $341 and $354

997

805

    Prepaid expenses

92

131

    Loans and advances

62

10

    Prepaid advertising credits

19

60

    Deferred tax asset, net of allowance of $22 and $22

798

798

    Notes receivable

291

180

    Other current assets

21

6

Total current assets

8,087

7,376




Property and equipment, net of accumulated depreciation of $409 and $468

63

89

Goodwill

3,191

3,266

Deferred tax asset, net of allowance of $130 and $130, and net of current portion

4,373

4,681

Intangible assets, net of accumulated amortization of $2,823 and $2,691

647

855

Notes receivable, net of current portion

1,261

729

Other long-term assets

21

25

              Total assets

$                17,643

$              17,021




LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:


Accounts and other expenses payable

$                     149

$                     76

Commissions payable to brokers

393

669

Accrued commissions to brokers

1,288

785

Accrued expenses

503

545

Deferred revenue

32

47

Advance payments

118

133

Total current liabilities

2,483

2,255




Long-term liabilities:


      Other long-term liabilities

10

8

Total Liabilities

2,493

2,263




Commitments and contingencies






Stockholders' equity:


Common stock, $0.01 par value; 9,000 shares authorized;
3,636 and 3,636 shares issued and outstanding, respectively

36

36

Additional paid-in capital

28,998

28,867

Accumulated deficit

(13,884)

(14,145)

Total stockholders' equity

15,150

14,758

               Total liabilities and stockholders' equity

$                17,643

$              17,021






ITEX CORPORATION

CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)










Three-Months Ended January 31,

Six-Months Ended January 31,



2012

2011

2012

2011











Revenue:








Marketplace revenue and other revenue

$          4,229

$        4,417

$    8,199

$     8,530











Costs and expenses:








Cost of Marketplace revenue

2,808

2,764

5,318

5,243

Corporate salaries, wages and employee benefits

503

554

972

1,017

Selling, general and administrative

558

709

1,221

1,434

Depreciation and amortization

77

155

165

309



3,946

4,182

7,676

8,003











Income from operations

283

235

523

527











Other income (expense)








Interest, net

31

10

51

20

Other income/(expense), net

312

-

312

34



343

10

363

54











Income before income taxes

626

245

886

581












Income tax expense

202

94

302

227











Net income

$             424

$           151

$       584

$        354











Net income per common share:








Basic

$            0.12

$          0.04

$      0.16

$       0.10

Diluted

$            0.12

$          0.04

$      0.16

$       0.10











Weighted average shares outstanding








Basic

3,635

3,581

3,641

3,580

Diluted

3,636

3,588

3,642

3,587

SOURCE ITEX Corporation

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