ITEX Corporation Announces
Fiscal 2009 First-Quarter Results
ITEX Corporation (OTCBB:ITEX), a leading marketplace for cashless
business transactions in North America, has filed its Form 10-Q with
the Securities and Exchange Commission and announced results for its
fiscal 2009 first quarter ended October 31, 2008.
“Even with the continuing economic instability and a weakened
business climate, we are pleased to report a profit for the
quarter,” noted Steven White, Chairman and CEO. “We recognized a
modest revenue increase for the first quarter compared to the same
quarter last year, and our net cash from operations remained
strong.”
White explained, “In the first quarter of fiscal 2009, we increased
staffing in our sales department and continued to invest in our
technology infrastructure to further strengthen our foundation for
future revenue growth. We are building in areas we believe will
generate positive returns without exposing the company to
significant risk. As a result, corporate salaries, wages, and
employee benefits increased over last year due to strategic hires.
“We expanded our staff in our broker support team, including a
senior management position, sales specialists for our new media
services sector in connection with our August 2008 acquisition of
the media services company assets, and additional staff in our
technology department in order to pursue our Software as a Service (SaaS)
initiatives.
“SG&A (selling, general & administrative) expense also increased
over last year primarily due to an increase in professional
consulting expenses for investor relations and investment banking,
and to a lesser extent, outsourced development of our technology
platform.
“For the remainder of this fiscal year we expect to continue to
invest in our future; to be aggressive in investing our cash flow
and earnings, and utilizing ITEX Marketplace resources to build
market share, grow our business and capitalize on opportunities that
arise in difficult economic conditions.
“During recent months we have had several positive news stories
providing us with great media exposure, which can be viewed in the
News section of our website at www.itex.com,” he concluded.
First Quarter 2009 Highlights
·
Revenue of $3,899,000, compared to $3,853,000 in the same period
last year.
·
Net income of $45,000, compared to $156,000 in 2008.
·
Net cash provided from operations of $706,000, compared to $803,000
in 2008.
·
Cash at end-of-period was $1,282,000, compared to $1,061,000 at July
31, 2008.
·
ITEX Media Services was launched with the August 1, 2008 acquisition
of a media trading platform and media and travel clients.
· Created
a new business development department tasked with creating
relationships with companies that have a national presence to assist
with our growth on the local level.
·
Signed a partnership agreement with iCare, a division of SYSCO,
Inc., an enterprise-level supplier of products and services to the
food service and hospitality industries.
Subsequent Events
·
In November, entered into an agreement with U.S. Bank to increase
the maximum loan amount under our revolving credit facility from
$1.0 million to $1.5 million, to lower the interest rate of the
facility, to remove certain borrowing base limitations, and to
extend the maturity date to November 30, 2009.
·
In November, paid off the remaining balance of our Promissory Note
due to The Intagio Group for the recently acquired media services
assets.
ITEX Corporation’s report on Form 10-Q can be found at
www.sec.gov.
