ITEX Reveals Fourth Consecutive Profitable Year
ITEX
Corporation (OTCBB: ITEX) filed its Form 10-KSB with the Securities
and Exchange Commission and announced its results for the fiscal
year ended July 31, 2007.
“Over the past
four fiscal years, we have increased operational income and cash
flow year over year,” stated Steven White, Chairman and CEO. “During
the same period, we increased stockholder equity from a negative
$481,000 to more than $12 million, increased revenue 34%, and almost
doubled our membership base.
“We attribute
our growth to focusing our model on cashless transaction processing
for small businesses in a unique, vertical marketplace. Our fiscal
2007 results reflect another solid year with gains in key areas
including income from operations, operational cash flow, and
earnings per share,” he continued.
“As a result of
our gains and strong cash flow, our balance sheet continued to
strengthen in fiscal 2007 with total assets increasing 34% and total
liabilities decreasing 27%. Our ability to invest in technology and
to initiate new projects in order to grow revenue affords us a firm
footing for the future.
“During fiscal
2007, we upgraded and expanded the franchise portion of our web
site, we retained outside technology and marketing firms to help
execute a multi-faceted strategy to increase revenue, and we
announced our Executive Privileges Program.
“We anticipate
that these programs and initiatives will have a long-term positive
effect on our operations by expanding our Trading Community member
base and increasing participation in our Marketplace,” White
concluded.
Fiscal Year 2007
Highlights
Income from
operations increased 12% in fiscal year 2007 to $1,505,000, from
$1,341,000 for fiscal year 2006.
Operational
cash flow increased 12% in fiscal year 2007 to $2,057,000, from
$1,836,000 for fiscal year 2006.
Total net
income increased 31% in fiscal year 2007 to $4,504,000, from
$3,433,000 for fiscal year 2006.
In fiscal year
2007 and 2006 the firm realized gains of $2,843,000 and $1,975,000,
respectively, as an income tax benefit. Most of ITEX’s future tax
benefit is now recorded on its balance sheet as a deferred tax
asset.
Earnings per
share (diluted) increased 39% in fiscal year 2007 to 25 cents, from
18-cents for fiscal year 2006. Earnings per share (diluted) from
operations increased 14% in fiscal year 2007 to 8-cents, from 7
cents for fiscal year 2006.
Cash and cash
equivalents increased 458% in fiscal year 2007 to $1,753,000, from
$314,000 for fiscal year 2006.
Assets
increased 34% in fiscal year 2007 to $14,304,000, from $10,663,000
for fiscal year 2006. Total liabilities decreased 27% in fiscal 2007
to $1,974,000, from $2,695,000 in fiscal year 2006.
ITEX
repurchased 438,000 and 1,050,000 shares of common stock during
fiscal years 2007 and 2006, respectively. There were 17,918,632
total outstanding shares as of October 2, 2007, with no outstanding
options or warrants.
The firm
completed more than $270,000,000 in ITEX dollar transactions by
processing 314,000 transactions in fiscal year 2007.
ITEX
Corporation’s report on Form 10-KSB can be found at
www.sec.gov,
and on the investor relations portion of its web site at
www.itex.com.
