Sets 25-Year Sales Record On 28-Day Operating Cycle
Corporation (OTCBB:ITEX) has announced the results of its most
recent operating cycle, ending December 20, 2007. With thirteen
28-day operating cycles each fiscal year, December is traditionally
the company�s best cycle of the fiscal year.
A number of
company records were set during this recent operating cycle (all
numbers are unaudited) including:
business to business combined transaction volume (CTV).
surpassed the $1 million dollar CTV level.
The number-one office
was a Southern California franchise, which topped $1.7
million...triple their CTV for the same period in 2006.
22 offices set
personal records; exceeding their CTV for any previous period.
ITEX cash billings
topped $1.6 million for the period.
company-owned stores (San Francisco, Chicago and Cleveland) doubled
their CTV compared to the first billing cycle after their
acquisition just 5 months ago,� noted Steven White, Chairman and
CEO. �This is a positive sign that our initiatives and integration
have taken a strong foothold.
�We are very
pleased with the depth and breadth of the growth achieved. Growth
occurred on many levels at a large number of our offices,� he
continued. �Our high level of transaction volume translates into
increased cash transaction fees, another shared reward of our
operating cycle just preceding the Christmas holiday is generally
our highest, we hope to continually set additional records
throughout the remaining portion of our fiscal year. These numbers
are not necessary indicative of our performance for the quarter or
the year, but we do believe they indicate that we are gaining
traction with our strategic initiatives.�
information on ITEX go to
Trade Exchange Barter Difficult In China
IRTA member Xi Sun of Beijing Barter (BBI), asking how the barter
business was progressing in Beijing and if he would give us a brief
report. The following was his answer:
through a trade exchange is really difficult in China. The largest
exchange in this country has several hundred members, and the
business is on small scale transactions. This is mainly a reflection
of a poor credit environment, usage of alternative currencies not
allowed by the authorities, and people lacking both experience and
confidence in new credit means.
does occur, mainly in the media sector, and there are some web sites
dealing with consumer to consumer barter, but no trade dollars are
BBI signed a
licensing agreement with XO of New Zealand last May to introduce a
platform so we could provide trade exchange services in Beijing.
information on Beijing Barter go to
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trust you�ll find them worthwhile, and value your feedback.
Breakthrough In Restaurant Marketing, Lead Generation
A new report
highlights the switch from print coupons to online marketing,
showing that American restaurants are turning away from newspapers
and direct mail to the Internet to win new business and reach
younger and more prosperous customers.
A review of
online restaurant promotions shows that one-third of
restaurant-goers now use the web to check out menus. The arrival of
�virtual discount� coupons for meals is predicted to drive the
number rapidly higher.
money-saving, discount coupon has apparently arrived in the online
era. And many believe it promises to revolutionize the way customers
choose where to eat in every sector of the restaurant market...just
like it�s changed the way we find the news and do much of our
used not only to bring in more diners but also as a key source of
leads for future business, enabling restaurants to collect contact
details and stay in touch with consumers...to maintain higher
volumes and increase profits.
The majority of
coupons, offering customers annual savings of $331 billion, are
currently printed and distributed with newspapers, but with
redemption rates tumbling, the Internet is seen as a much more
flexible and attractive discount route. This year, an estimated 2.6
billion coupons are available on the web, with online redemptions
running up to 11 times the level of those from print.
In place of
lengthy lead times, complex print management and costly logistics,
the report says, the Internet allows restaurants to offer coupons
instantaneously and at low cost. Customers simply find the
restaurant discounts they want online, and print out the coupons at
outspoken editor-in-chief of Restaurant Commando, welcomed the new
study. �This unique and rare special report provides the crucial
data restaurateurs need to maximize their coupon campaigns,� he
One company in
the vanguard of online restaurant couponing is rolling out a
nationwide, city-by-city service allowing restaurateurs to manage
their discount promotions in real time...effectively turning them on
and off to control the flow of customers.
simply log on to CouponCuisine, key in the details of their special
offers, instantly generating up to five different coupons�for
example to test new dishes or fill seats on a quiet night. They can
show their full menu, link to the restaurant web site, control how
many coupons are printed, change them as frequently as they want,
and track details of who is looking at them and using them.
�It�s a massive
marketing advance for the restaurant industry,� says CouponCuisine
founder Nathan Gilder. �Instead of the shotgun approach of
newspapers, restaurants using online coupons can target customers
with precision and at low risk. If one offer doesn't work it can be
restaurateur and consultant Troy Authement of Texas-based Strategic
Profits is excited to see restaurant coupons on the Internet:
�Having spent 24 years owning and running restaurants and three as a
restaurant consultant, I believe services like CouponCuisine are the
answer to attracting new customers and keeping current ones active,�
findings highlighted in the study are that middle and high income
groups are among the biggest users of coupons, and that more than
half of 20- to 30-year-olds use them. These groups are also among
the most avid web users and a key target for restaurants.
The following is a letter (dated
December 6, 2007) from Chairman and Chief Executive Officer Steven
White to shareholders, reporting on 2007 achievements and looking
ahead to the future of ITEX Corporation.
The Year In Review And A Look Forward
I am pleased
to report that ITEX has continued to maintain its solid record of
performance. Today, I will summarize our fiscal 2007 achievements,
our strengths and challenges, and the steps we are taking to move
the company forward.
do: For 25 years we
have helped our members attract new business through our trading
community. Our identity is encapsulated in our slogan: �ITEX, The
Membership Trading CommunitySM, is a leading marketplace
for cashless business transactions across North America.� We
generate revenue by charging members percentage-based transaction
fees and subscription fees. These two revenue streams generated 99%
of our $14 million in revenue last year.
day, we work to grow our business and maintain a profitable
marketplace that assists businesses in becoming more successful. As
our members succeed, they are motivated to transact more business
and refer new members to our trading community. This past year we
endeavored to more clearly refine what we do, improve our processing
methods, and attract more business.
focus groups provided valuable insight into the needs, wants, and
expectations of the small business owner: our core customer. We
sharpened our message to existing and potential members. We analyzed
our value proposition and determined we could offer more. New
revenue streams were explored and the groundwork laid to start
testing our ideas.
As a result
of our efforts this year, our messaging to existing and potential
members is more concise, our marketing material and website has been
redesigned, and we introduced the Executive Privileges Program. We
seek to expand our presence in the business services sector and
accelerate the velocity of transactions in our trading community. In
a challenging national economy, we are convinced small businesses
can benefit even more from the valuable services we provide.
Strengths: ITEX has
three primary strengths � our 24,000 member business base, our
proprietary payment processing and trading platform (�Trading
Platform�), and our ability to manage our capital and the operations
of our business efficiently and profitably. Our Trading Community
has grown more than 50% in the last 30 months. We believe the
relationship with our member base is underused and undervalued, but
is a significant asset with tremendous potential. To enhance this
asset, additional partnerships and services are being explored.
Platform provides excellent tools for our members, our franchise
network and our corporate staff, and benefits from a steady stream
of enhancements and support. This platform can be expanded to
attract many payment processing or private currency systems. In the
future we may license our Trading Platform to other businesses to
manage their private, closed-loop business models. We do not
anticipate licensing the Platform to competitive barter exchanges,
rather to the growing business opportunity of cashless, private
our capital efficiently and continue to generate strong cash flow.
Our cash flow in 2007 exceeded $2.5 million. We retired the
acquisition debt that originated late in fiscal 2005, funded a new
acquisition we completed August 1, 2007, and repurchased and retired
shares of common stock. Both acquisitions increased our member base
and our revenues, and are expected to contribute to net income. In
the near term, we plan to use our capital to either pay off the
recent acquisition, buy back more shares at an opportunistic price
or fund new acquisitions.
to our cash revenue streams, we generated more than $4 million ITEX
dollars in fiscal 2007 and expect to generate more than $5 million
in fiscal 2008. The ITEX dollars were primarily used as revenue
share and sales incentives with franchisees, and for incentives for
existing members. This year we will utilize some of ITEX dollars to
offset cash expenses and provide opportunities to enhance our
primary objective is to increase member count and generate broader
acceptance by the small business sector. Although our revenue has
grown 34% and member count by 50% since 2003, this growth has
occurred primarily through acquisitions. We are focusing on organic
growth, which will help continue our overall successful track
record. I am pleased to report we are seeing signs of this growth in
the first fiscal quarter of 2008.
in the past fiscal year include:
profits, allowing us to realize a sizable tax benefit.
Introduction of the Executive Privilege Program.
� Launch of
free online member registration.
of educational videos on our web site, which is useful for members
towards our future: In
the almost five years since I began serving as Chairman and CEO, we
have overcome several hurdles and mended legacies inherited from the
past. I am proud and grateful for the support that has been afforded
me by shareholders, our staff and our broker offices.
to build a stronger company and find ways to grow and prosper. Many
have forecasted onerous economic conditions for the coming year.
During times such as these, our Trading Community can flourish as
businesses utilize services to not only survive, but prosper as we
assist them in selling their goods and services.
There is a
dynamic energy in our Trading Community that keeps commerce rolling,
their ITEX dollars working, and their calendars full. It is our
mission to put ITEX on the financial map and to see its greatness
achieved. Whether by organic growth or further acquisitions, or
both, we will strive to become an expanding force that will benefit
our members, assist our franchisees and increase value for our
successful in business requires a lot of endurance, tenacity and
resolve. We are resolute in continuing our efforts to maintain your
trust and confidence.
On behalf of
ITEX, I would like to thank our diligent employees; the franchise
network (and their staff), whose dedication and drive is a vital
component in our success; our members, to whom we strive to deliver
value and service; and our valued stockholders, for your continuing
support and interest.
Chairman of the Board, Chief Executive
Work With Audio/Visual
Vendor On Barter
Collect cash, as usual, from the guest accounts staying at
your facility that require the use of professional AV
services. And rather than shouldering your ongoing employee
costs, or your current vendor�s cash agreement for AV
services, here�s a much better alternative:
Work with a proven national vendor (a sterling 25-year track
record) who will provide all of the AV services for your
hotel on a 100% TRADE BASIS! (Payment to be in the form of
Your hotel�s annual AV billings must be a minimum of
$200,000, and this offer is available only in the
continental United States.
For a confidential introduction contact Bob Meyer via
Attention Trade Exchange Owners:
If your member hotel(s) have a minimum of 10,000 sq. feet of
meeting space and annual billings of at least $200,000 for
AV services this is a great opportunity to earn substantial
cash service fees on the hundreds of thousands of trade
dollars your hotel member will be paying the vendor. Contact
Bob Meyer at the above e-mail.
How To Get More Sales In
Our street-smart restaurant
marketing report shows proven ways to rapidly boost your
restaurant�s sales & profits.
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hitting the search button.
The Growth and Use of Secondary Capital (New Money) Creates
Unprecedented Wealth In Today�s New Age Of Possibility
many forms of secondary capital�which can be defined as any
financial instrument that measures and communicates value in a
common language. Would you like to see and learn more about the many
forms of secondary capital?
We have 70
free, informative and inspiring, articles for you in our �Secondary
Capital Section.� Check it out...
New Money-Making Ideas And Valuable Contacts!
You can obtain
useful, informative ideas and contacts in every available back-issue
barter company in the world is listed on our web site,
click through to our Global List
of Barter Companies.
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