Press Releases >> ITEX Announces Results for First Quarter of Fiscal 2010: December 10, 2009

ITEX Announces Results for First Quarter of Fiscal 2010

Bellevue, WA December 10, 2009 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 2010 first quarter ended October 31, 2009.

Income from operations increased more than 15 times over what we reported for the corresponding period last year; when we were investing in our strategic initiatives. We achieved growth in a number of areas during a very difficult economic time while many other businesses recognized declines said Steven White, Chairman and CEO.  We realized a small increase in revenues for the quarter with expenses and earnings in line with what we anticipated, resulting in an increase in net income.  Our cash from operations remained strong.  

Mr. White continued, As I conveyed in my annual letter to shareholders last week, our financial condition has never been stronger. We attribute our financial success in part to our disciplined, conservative and astute management of our finances; our ability to run the company with a lean, smart and dedicated staff; our hard-working broker network and their employees; and our understanding that in order to make forward leaps, we need to follow our entrepreneurial drive with fearless pursuit of opportunity.  The upside for growth in our trading community is enormous and largely untapped, while our downside is limited due to the strength of our balance sheet, cash flow and proven revenue streams.

First Quarter 2010 Highlights

·         Income from operations of $340,000 compared to $22,000 in the same period last year;

Revenue of $3,924,000 compared to $3,899,000 in the same period last year;

·         Net income of $277,000 compared to $45,000 in the same period last year;

·         Cash at end of period was $3,098,000 compared to $2,557,000 on July 31, 2009;

·         Stockholder equity of $14,271,000 compared to $13,981,000 in the same period last year;

·         Sold our San Francisco, CA corporate owned office to an existing franchisee.

Subsequent Event

·         In November, we entered into an agreement with U.S. Bank to increase the maximum loan amount under our revolving credit facility from $1.5 million to $2.5 million, to lower the interest rate to  2 ¼% (adjustable), and to extend the maturity date to November 30, 2010.

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

alan@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-K and Forms 10-Q, which are available at www.sec.gov. All information set forth in this release is as of December 10, 2009, and ITEX undertakes no duty to update this information. For more information, please visit www.itex.com