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ITEX Announces Results for Fiscal Year 2010
Bellevue, WA October 20, 2010 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 results for its fourth quarter and fiscal year ended July 31, 2010.
I am pleased to report another strong fiscal year with impressive results, said Steven White, Chairman and CEO. We are bearing the fruits of our timely acquisitions completed between 2005 and 2008. Cash flow from the acquired companies largely covered the related acquisition debt and we were able to accelerate payments and eliminate all long-term debt early in calendar year 2009. In fiscal year 2010 we recorded a 63 percent increase in income from operations compared to the previous year, a 56 percent increase in net income and we more than doubled our cash position to $5.2 million.
Income from operations increased as a result of revenue growth and a reduction in selling, general and administrative costs, depreciation and amortization expense. Our increased cash position reflects our operational income and the skillful management of our assets by our executive and financial teams.
Mr. White continued, We have been successful in our efforts to increase our cash position during the last two years, providing the Company with a very stable financial platform from which to operate. As the economic uncertainty persists we will continue to manage our finances in a disciplined and prudent manner while investing in our future to ensure our success. For our shareholders, we are pleased to have commenced a quarterly dividend, with our first ever dividend paid in the fourth quarter. Also in the fourth quarter, we completed a company-wide computer upgrade benefiting our Broker Network and corporate operations.
Fiscal Year 2010 Highlights
· Income from operations increased 63% to $1.674 million from $1.027 million last year;
· Net income increased 56% to $946,000 from $607,000 last year;
· Earnings per share increased 53% to $0.26 from $0.17 last year;
Revenue increased 3% to $16.925 million from $16.502 million last year;
· Cash at end of period increased 102% to $5.169 million from $2.557 million on July 31, 2009;
· Stockholder equity increased 6% to $14.869 million from $13.981 million on July 31, 2009;
· Completed a company-wide computer upgrade initiative in conjunction with the launch of Office 2010, expensing $129,000;
· Entered into an agreement with U.S. Bank to increase our revolving credit facility from $1.5 million to $2.5 million with a lower interest rate;
· Completed a one for five reverse stock split of our common stock, reducing the number of shares of common stock from 18,027,914 to approximately 3,605,320;
· Paid a $0.025 per share quarterly cash dividend in the fourth quarter;
· Repurchased and retired 4,943 shares of common stock;
· Sold our San Francisco, CA corporate-owned office to an existing franchisee.
Subsequent Event
On September 20, 2010, we paid a quarterly cash dividend in the amount of $0.025 per share.
ITEX Corporation's report on Form 10-K can be found at www.sec.gov.
The financial statements for all periods presented in this press release have been adjusted to reflect the 1:5 reverse stock split effective May 3, 2010.
About ITEX
ITEX, The Membership Trading CommunitySM, is a thriving network of participating member businesses. Members 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, the leading payment technology platform for processing cashless business transactions. ITEX is headquartered in Bellevue, WA. For more information, please visit ITEX's website at www.itex.com. We routinely post important information on the investor relations portion of our website.
For more information, please visit www.itex.com
Contact: Alan Zimmelman, ITEX Corporation
425.463.4017 or alan@itex.com
About ITEX
ITEX, The Membership Trading CommunitySM, is a leading marketplace for cashless business transactions. Members increase sales through an exclusive distribution channel managed by our broker and franchise network, by utilizing ITEX dollars to exchange goods and services. We generate revenue by charging members percentage-based transaction fees and association fees. ITEX is headquartered in Bellevue, WA. We routinely post important information on the investor relations portion of our website. For more information, please visit www.itex.com.
Company Contact
Alan Zimmelman
ITEX Corporation
425.463.4017
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 October 20, 2010, and ITEX undertakes no duty to update this information.
