ITEX Announces Results for Second Quarter of Fiscal Year 2011

Mar 10, 2011, 16:35 ET from ITEX Corporation

BELLEVUE, Wash., March 10, 2011 /PRNewswire/ -- ITEX Corporation (OTC Bulletin Board: 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 2011 second quarter ended January 31, 2011.

Second Quarter 2011 Highlights

  • Revenue of $4.417 million compared to $4.537 million in the same period last year;
  • Income from operations of $235,000 compared to $526,000 in the same period last year;
  • Net income of $151,000 compared to $172,000 in the same period last year;
  • Cash at end of period increased to $5.612 million from $5.169 million on July 31, 2010;
  • Stockholder equity increased to $15.012 million from $14.869 million on July 31, 2010;
  • Paid a $0.04 per share quarterly 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, except per share amounts)

January 31, 2011

July 31, 2010

ASSETS

Current assets:

    Cash and cash equivalents

$                  5,612

$                5,169

    Accounts receivable, net of allowance of $427 and $349

1,005

859

    Prepaid expenses

143

118

    Loans and advances

35

55

    Prepaid advertising credits

157

157

    Deferred tax asset

1,018

1,018

    Notes receivable - corporate office sales

129

125

    Other current assets

21

24

Total current assets

8,120

7,525

Property and equipment, net of accumulated depreciation of $430 and $380

127

169

Intangible assets, net of accumulated amortization of $2,456 and $2,205

814

994

Deferred tax asset, net of current portion

4,795

5,000

Notes receivable - corporate office sales, net of current portion

589

480

Other long-term assets

56

188

Goodwill

3,282

3,282

              Total assets

$                17,783

$              17,638

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$                       68

$                   124

Commissions payable to brokers

384

661

Accrued commissions to brokers

1,167

789

Accrued expenses

753

705

Deferred revenue

114

133

Advance payments

128

167

Total current liabilities

2,614

2,579

Long-term liabilities:

      Other long-term liabilities

157

190

Total Liabilities

2,771

2,769

Commitments and contingencies

Stockholders’ equity:

Common stock, $0.01 par value; 9,000 shares authorized; 3,583 and 3,576 shares issued and outstanding, respectively

36

36

Additional paid-in capital

29,160

29,138

Accumulated deficit

(14,184)

(14,305)

Total stockholders' equity

15,012

14,869

               Total liabilities and stockholders’ equity

$                17,783

$              17,638

ITEX CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts)

Three-Months Ended

January 31,

Six-Months Ended

January 31,

2011

2010

2011

2010

Revenue:

Marketplace revenue and other revenue

$          4,417

$        4,537

$    8,530

$     8,460

Costs and expenses:

Cost of Marketplace revenue

2,764

2,907

5,243

5,456

Corporate salaries, wages and employee benefits

554

479

1,017

891

Selling, general and administrative

709

462

1,434

915

Depreciation and amortization

155

163

309

333

4,182

4,011

8,003

7,595

Income from operations

235

526

527

865

Other income (expense)

Net interest

10

10

20

21

Gain (loss) on sale of assets

-

(257)

34

(157)

10

(247)

54

(136)

Income before income taxes

245

279

581

729

Provision for income taxes

94

107

227

280

Net income

$             151

$           172

$       354

$        449

Net income per common share:

Basic

$            0.04

$          0.05

$      0.10

$       0.13

Diluted

$            0.04

$          0.05

$      0.10

$       0.13

Weighted average shares outstanding

Basic

3,581

3,575

3,580

3,569

Diluted

3,588

3,578

3,587

3,571

SOURCE ITEX Corporation



RELATED LINKS

http://www.itex.com