ITEX Announces Results for First Quarter of Fiscal Year 2013

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Dec 13, 2012, 06:10 ET

BELLEVUE, Wash., Dec. 13, 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 2013 first quarter ended October 31, 2012.

First Quarter 2013 Results (Compared to First Quarter 2012)

Net income increased 55% to $248,000 compared to $160,000
Revenue decreased 7% to $3,711,000 compared to $3,971,000
SG&A expenses decreased 30% to $467,000 compared to $664,000
Earnings per share increased 125% to $0.09 compared to $0.04
Cash increased 19% to $2,308,000 compared to $1,942,000 at fiscal year-end July 31
Paid a $0.04 per share cash dividend

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.

ITEX CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands)
	October 31, 2012	July 31, 2012
ASSETS
Current assets:
Cash	$ 2,308	$ 1,942
Accounts receivable, net of allowance of $329 and $319	716	716
Prepaid expenses	67	98
Loans and advances	14	12
Prepaid advertising credits	2	3
Deferred tax asset, net of allowance of $23 and $23	603	603
Notes receivable	343	334
Other current assets	60	47
Total current assets	4,113	3,755

Property and equipment, net of accumulated depreciation of $430 and $425	36	43
Goodwill	3,191	3,191
Deferred tax asset, net of allowance of $163 and $163 and net of current portion	4,167	4,293
Intangible assets, net of amortization of $3,004 and $2,945	423	525
Notes receivable - net of current portion	1,263	1,285
Other long-term assets	18	19
Total assets	$ 13,211	$ 13,111

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts and other expenses payable	$ 80	$ 85
Commissions payable to brokers	306	654
Accrued commissions to brokers	1,057	842
Accrued expenses	444	412
Deferred revenue	24	32
Advance payments	117	136
Notes payable	7	-
Total current liabilities	2,035	2,161

Long-term liabilities:
Other long-term liabilities	9	10
Notes Payable, net of current portion	8	-
Total long-term liabilities	17	10
Total Liabilities	2,052	2,171

Stockholders' equity:
Common stock, $0.01 par value; 9,000 shares authorized; 2,617 and 2,614 shares issued and outstanding, respectively	26	26
Additional paid-in capital	25,247	25,183
Stockholder note receivable	(463)	(489)
Accumulated deficit	(13,651)	(13,780)
Total stockholders' equity	11,159	10,940
Total liabilities and stockholders' equity	$ 13,211	$ 13,111


ITEX CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
	2012	2011
Revenue
Marketplace revenue and other revenue	$ 3,711	$ 3,971

Cost and expenses:
Costs of marketplace revenue	2,361	2,509
Corporate salaries, wages and employee benefits	485	469
Selling, general and administrative	467	664
Depreciation and amortization	66	88
	3,379	3,730

Income from operations	332	241

Other income/(expense):
Interest, net	30	20
Other income, net	2	-
	32	20

Income before income taxes	364	261
Income tax expense	116	101
Net income	$ 248	$ 160

Net income per common share:
Basic	$ 0.09	$ 0.04
Diluted	$ 0.09	$ 0.04

Weighted average shares outstanding:
Basic	2,617	3,647
Diluted	2,617	3,648