ITEX Announces Results for Second Quarter of Fiscal Year 2013

ITEX CORPORATION

CONSOLIDATED BALANCE SHEETS

(In thousands)

January 31, 2013

July 31, 2012

ASSETS

Current assets:

     Cash 

$                             2,461

$                1,942

     Accounts receivable, net of allowance of$265 and $319

1,012

716

     Prepaid expenses

120

98

     Loans and advances

27

12

     Prepaid advertising credits

-

3

     Deferred tax asset, net of allowance of $23 and $23

603

603

     Notes receivable 

341

334

     Other current assets

75

47

Total current assets

4,639

3,755

Property and equipment, net of accumulated depreciation of $419 and $425

43

43

Goodwill

3,191

3,191

Deferred tax asset, net of allowance of $163 and $163 and net of current portion

3,984

4,293

Intangible assets, net of amortization of $3,063 and $2,945

365

525

Notes receivable - net of current portion

1,173

1,285

Other long-term assets

17

19

               Total assets

$                           13,412

$              13,111

LIABILITIES AND STOCKHOLDERS' EQUITY 

Current liabilities:

Accounts and other expenses payable

$                                152

$                     85

Commissions payable to brokers

-

654

Accrued commissions to brokers

1,305

842

Accrued expenses

357

412

Deferred revenue

22

32

Advance payments

97

136

Notes payable

7

-

Total current liabilities

1,940

2,161

Long-term liabilities:

       Other long-term liabilities

8

10

       Notes Payable, net of current portion

6

-

           Total long-term liabilities

14

10

Total Liabilities

1,954

2,171

Stockholders' equity:

Common stock, $0.01 par value; 9,000 shares authorized;
2,616 and 2,614 shares issued and outstanding, respectively

26

26

Additional paid-in capital

25,278

25,183

Stockholder note receivable

(437)

(489)

Accumulated deficit

(13,409)

(13,780)

Total stockholders' equity 

11,458

10,940

                Total liabilities and stockholders' equity 

$                           13,412

$              13,111

ITEX CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts)

Three-Months Ended

January 31,

Six-Months Ended

 January 31,

2013

2012

2013

2012

Revenue:

Marketplace revenue and other revenue

$          3,960

$        4,229

$    7,671

$     8,199

Costs and expenses:

Cost of Marketplace revenue

2,551

2,808

4,912

5,318

Corporate salaries, wages and employee benefits

477

503

961

972

Selling, general and administrative

368

558

836

1,221

Depreciation and amortization

65

77

131

165

3,461

3,946

6,840

7,676

Income from operations

499

283

831

523

Other income (expense)

Interest, net

30

31

61

51

Other income/(expense), net

(2)

312

-

312

28

343

61

363

Income before income taxes

527

626

892

886

Income tax expense

169

202

286

302

Net income

$             358

$           424

$       606

$        584

Net income per common share:

Basic

$            0.14

$          0.12

$      0.23

$       0.16

Diluted

$            0.14

$          0.12

$      0.23

$       0.16

Weighted average shares outstanding

Basic

2,615

3,635

2,616

3,641

Diluted

2,616

3,636

2,617

3,642