Press Releases >> ITEX Announces Results for First Quarter of Fiscal 2008: December 12, 2007

ITEX Announces Results for First Quarter of Fiscal 2008

Bellevue, WA December 12, 2007 ITEX Corporation (OTCBB: ITEX), The Membership Trading CommunitySM, a leading marketplace for cashless business transactions in North America, today filed its Form 10-QSB with the Securities and Exchange Commission and announced results for its fiscal 2008 first quarter ended October 31, 2007.

Revenue for the quarter ended October 31, 2007 increased by 2% over the same quarter in the prior year.  For the quarter ended October 31, 2006, ITEX reported $357,000 of unique conversion revenue from former BXI members who had changed fee plans.  Without the one-time conversion revenue in 2006, revenue for the quarter ended October 31, 2007 would have reflected an increase of $420,000, or 12% over the comparable 2006 quarter. Organic growth from existing operations contributed $92,000 to this revenue increase. 

Included in the fiscal 2008 first quarter financial statements is $21,000 in ITEX dollar transactions that met non-monetary recognition criteria of Accounting Principle Board 29.  In past periods, ITEX dollar transactions did not impact the financial statements because it was determined they did not meet non-monetary recognition criteria or were not material.

Steven White, Chairman and CEO stated: Comparing year over year quarters and excluding the one-time conversion revenue in last year's first quarter, our income from operations increased 28%.  Our fiscal 2008 first quarter results also included acquisition costs for our Intagio transaction.  Overall, I'm quite pleased with the results for this quarter.

More good news to report is that our acquisition of Intagio members in August 2007 contributed $287,000 in revenue this quarter. Despite a few challenges during the transition, we are very satisfied with the early results of the acquisition.  Of the six Intagio regions acquired, three regions were sold in the first quarter and we retained three to operate as corporate-owned or prototype offices.  Within our prototype offices, we are able to implement new commission structures, test new support fees and pursue other strategies to increase revenues and better serve members.  We have focused on organic growth and are pleased to see traction in our revenue growth strategies.  Further, new member registrations for the quarter were 823 compared to 669 in the comparable period for the previous year, representing a 23% increase. 

Mr. White concluded, Everything considered, this was a strong quarter. If we adjust for acquisition costs and one-time conversions, our revenue and income from operations this quarter had impressive gains over last year's numbers.  We reflected some ITEX dollar revenue and expenses in our financial statements this quarter. Though the amount of these transactions is less than one percent of our total revenue for the quarter, we clearly identified and disclosed the amount of revenue and expense generated by these ITEX dollar transactions on our income statement.  Considerable time and effort was devoted this quarter to the integration of the Intagio members.  The integration is now completed; our new corporate-owned offices and our Broker Network are geared up for our busy holiday season.

First Quarter 2008 Highlights

Revenue of $3,853,000 

Intagio acquisition added $287,000 in revenue

 Income from operations of $272,000

 Net cash provided by operations of $767,000

 Total assets of $15,290,000

 202,384 common shares repurchased and canceled

 $1,000,000 credit line renewed

Qualified ITEX dollar transactions reflected in our financial statements

ITEX Corporation's report on Form 10-QSB can be found at www.sec.gov.

About ITEX:

ITEX, The Cashless Marketplace, is a leading marketplace for cashless business transactions in North America. ITEX processes more than $250 million a year in transactions through 22,000 member businesses managed by 95 franchisees and licensees. Member businesses increase sales through an exclusive distribution channel by utilizing the ITEX Dollar to exchange goods and services. ITEX is powered by ITEX Payment Systems, the leading payment technology platform for processing cashless business transactions. ITEX is headquartered in Bellevue, Washington.

Contact:
Alan Zimmelman
425.463.4017
alan@itex.com

For more information, please visit www.itex.com This press release contains forward-looking statements that involve risks and uncertainties concerning our expected performance (as described without limitation in the quotations from current management in this release) and comments within the safe harbor provisions established under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from the results predicted and reported results should not be considered as an indication of our future performance. We believe that these potential risks and uncertainties include, without limitation: the continuing development of successful marketing strategies for our concepts; our ability to increase revenues and sustain profitability; the availability of adequate working capital; our dependence both on key personnel and our franchise network; and the effect of changes in the overall economy and in technology. Statements in this release should be evaluated in light of these factors. These risk factors and other important factors that could affect our business and financial results are discussed in our periodic reports and filings with the Securities and Exchange Commission, including our Forms 10-KSB and Forms 10-QSB, which are available at www.sec.gov., including under the caption, "Management's Discussion and Analysis of Financial Condition and Results of Operations." All information set forth in this release is as of December 12, 2007, and ITEX undertakes no duty to update this information.