Press Releases >> ITEX Announces Results for Fiscal Year 2008: October 1, 2008
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Bellevue, WA October 1, 2008 ITEX Corporation (OTCBB: ITEX), The Membership Trading CommunitySM, a leading marketplace for cashless business transactions in North America, today filed its Form 10-K with the Securities and Exchange Commission and announced its results for the fiscal year ended July 31, 2008.
We are pleased to report our fifth consecutive profitable year for ITEX, said Steven White, Chairman and CEO. Despite a difficult and complex economic environment in the U.S., we recorded increases in revenues, cash from operating activities, total assets and stockholder equity in 2008.
Revenues increased 13 percent and net cash provided by operating activities increased 15 percent in 2008. Our operational cash flows provided the capital to fund two acquisitions in 2008 adding 2,400 clients. Total assets increased 13 percent and stockholders' equity increased 8 percent compared to 2007.
Mr. White continued, In 2008, we expanded our visibility in the investment community by retaining an investor relations firm and a financial advisor. We have presented to numerous research analysts, portfolio managers and equity firms around the country to discuss the ITEX business model, our financial performance and expansion goals. We are confident this foundation of work will benefit stockholders.
With the current economic uncertainty, we are well positioned to aid our member base in generating new sales and conserving precious cash. Our August 1, 2008 acquisition of the media trading platform, clients and advertising credits from The Intagio Group, Inc. allows us to offer a variety of new opportunities to the ITEX Marketplace. Our strong operational cash flow will allow us to continue investing in our technology, to initiate new revenue-generating projects and to pursue strategic alternatives, White concluded.
Fiscal Year 2008 Highlights
· Marketplace revenue increased 13% in 2008 to $15,964,000 from $14,171,000 in 2007.
· Net cash provided by operating activities increased 15% in 2008 to $2,374,000 from $2,057,000 in 2007.
· Stockholders' equity increased 8% in 2008 to $13,319,000 from $12,330,000 in 2007.
· Total assets increased 13% in 2008 to $16,149,000 from $14,304,000 in 2007.
· Fourth quarter revenue increased 18% to $4,065,000 compared $3,451,000 last year; fourth quarter income from operations increased 31% to $339,000 from $259,000 in 2007.
- Acquired assets of two commercial trade exchange networks, expanding our presence in six U.S. regions.
· 202,384 common shares repurchased and canceled.
- Invested $112,000 in computer hardware and software and added two full time equivalents to our Information Technology team. Created a national sales manager plus a business development position to execute partnerships with national firms. Acquired a 15% equity position in MyTypes, Inc., a Seattle-based technology firm.
Subsequent Events
- On August 1, 2008, we acquired the media trading system, client base, and advertising credit assets of The Intagio Group, Inc. of San Francisco, California. Expanded national partnership team with addition of Steve Savad, co-founder of restaurant.com.
ITEX Corporation's report on Form 10-K can be found at www.sec.gov and on the investor relations portion of our website at www.itex.com.
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, 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 October 1, 2008, and ITEX undertakes no duty to update this information. For more information, please visit www.itex.com
