Press Releases >> ITEX Announces Results for First Quarter of Fiscal 2009: December 11, 2008
<< Return to the Press ReleasesITEX Announces Results for First Quarter of Fiscal 2009
Bellevue, WA December 11, 2008 ITEX Corporation (OTCBB: ITEX), The Membership Trading CommunitySM, 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 2009 first quarter ended October 31, 2008.
Even with the continuing economic instability and a weakened business climate, we are pleased to report a profit for the quarter, said Steven White, Chairman and CEO. We recognized a modest revenue increase for the first quarter compared to the same quarter last year and our net cash from operations remained strong.
Mr. White continued, In the first quarter of fiscal 2009, we increased staffing in our sales department and continued to invest in our technology infrastructure to further strengthen our foundation for future revenue growth. We are building in areas we believe will generate positive returns without exposing the company to significant risk. As a result, corporate salaries, wages and employee benefits increased over last year due to strategic hires. We expanded our staff in our broker support team, including a senior management position, sales specialists for our new media services sector in connection with our August 2008 acquisition of the media services company assets, and additional staff in our technology department in order to pursue our Software as a Service (SaaS) initiatives. SG&A expense also increased over last year primarily due to an increase in professional consulting expenses for investor relations and investment banking, and to a lesser extent, outsourced development of our technology platform.
For the remainder of this fiscal year we expect to continue to invest in our future; to be aggressive in investing our cash flow and earnings, and utilizing ITEX Marketplace resources to build market share, grow our business and capitalize on opportunities that arise in difficult economic conditions.
During recent months we have had several positive news stories providing us with great media exposure, which can be viewed at the ITEX in the News section of our website at www.itex.com, White concluded.
First Quarter 2009 Highlights
- Revenue of $3,899,000 compared to $3,853,000 in the same period last year.
· Net income of $45,000 compared to $156,000 in 2008.
· Net cash provided from operations of $706,000 compared to $803,000 in 2008.
· Cash at end of period was $1,282,000 compared to $1,061,000 at July 31, 2008.
· ITEX Media Services was launched with the August 1, 2008 acquisition of a media trading platform and media and travel clients.
· Created a new business development department tasked with creating relationships with companies that have a national presence to assist with our growth on the local level.
· Signed a partnership agreement with iCare, a division of SYSCO, Inc., an enterprise-level supplier of products and services to the food service and hospitality industries.
Subsequent Events
· In November, we entered into an agreement with U.S. Bank to increase the maximum loan amount under our revolving credit facility from $1.0 million to $1.5 million, to lower the interest rate of the facility, to remove certain borrowing base limitations, and to extend the maturity date to November 30, 2009.
· In November, we paid off the remaining balance of our Promissory Note due to The Intagio Group, Inc. for the recently acquired media services assets.
ITEX Corporation's report on Form 10-Q can be found at www.sec.gov.
About ITEX
ITEX, The Membership Trading CommunitySM, is a thriving community of member businesses. Member businesses increase sales through an exclusive distribution channel managed by franchisees, licensees and corporate-owned locations, by utilizing ITEX dollars to exchange goods and services. ITEX is powered by ITEX Payment Systems, a leading payment technology platform for processing cashless business transactions. ITEX is headquartered in Bellevue, Washington. We routinely post important information on the investor relations portion of our website.
Company Contact
Alan Zimmelman
ITEX Corporation
425.463.4017
Institutional Contact:
Budd Zuckerman
Genesis Select
303.415.0200
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-K and Forms 10-Q, which are available at www.sec.gov. All information set forth in this release is as of December 11, 2008, and ITEX undertakes no duty to update this information. For more information, please visit www.itex.com
