ITEX Announces 2nd Quarter Earnings & New SaaS Agreement
ITEX Corporation (OTCBB:ITEX), a leading marketplace for cashless
business transactions in North America, filed its Form 10-Q with the
Securities and Exchange Commission and announced results for its
fiscal 2009 second quarter ended January 31, 2009.
�ITEX has been fortunate to be resilient to the fallout from the
global financial crisis,� affirmed Steven White, Chairman and CEO.
�The current economic turmoil has resulted in an increase in media
coverage of the benefits offered to businesses with the use of
barter through the ITEX platform.
�New member registration increased 45% this quarter and 31% for the
first two quarters of fiscal 2009, when compared to the same periods
last year. To capitalize on these difficult economic times, we made
a conscious decision at the beginning of this fiscal year to invest
more in our technology and support staff, as well as sales,
marketing and advertising efforts in order to build market share and
increase future profits.
�We saw a small increase in revenues for the quarter,� he continued.
�Expenses and earnings were in line with what we expected. Selling,
general and administrative costs increased this quarter primarily
due to an increase in bad debt expenses related to increases in
revenue and accounts receivable. Other contributing factors were
increases in rents due to our August 2008 acquisition, investor
relations expense and expenses related to our web services
�We have virtually no long-term debt on our balance sheet and our
short term acquisition debt has been reduced to $301,000. Three of
our four acquisitions since August 2005 have been paid in full. All
four acquisitions are now fully integrated into our operations and
are contributing positively to our long-term strategies.
�For the remainder of this fiscal year, we plan to continue to
invest our cash flow and earnings in our future; to be aggressive in
utilizing ITEX Marketplace resources. While other businesses slow
spending,� White concluded, �we seek to capture market share and
capitalize on opportunities that arise in difficult economic
Second Quarter 2009 Highlights
Revenue of $4,365,000 compared to $4,175,000 in the same period last
Income from operations of $235,000 compared to $482,000 in the same
period last year, reflecting the increase in selling, general and
administrative costs in the quarter;
Net cash provided from operations of $1,187,000 compared to
$1,805,000 in the same six-month period last year;
Cash at end of period was $1,207,000 compared to $1,061,000 at July
Registered 1,108 new members in the current quarter verses 765 last
year and registered 2,052 for the six-month period versus 1,571 last
year, a 45% and 31% increase respectively;
Paid off the remaining balance of our note to The Intagio Group for
the recently acquired media services assets;
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 and lower the interest rate.
Signed our first web services SaaS agreement with a Fortune 1000
media company. The agreement grants the right to use their
proprietary online marketplace, web interface, and client
relationship management platform for a $350,000 platform
subscription fee, recurring transaction processing fees based on the
gross value of transactional activity hosted by the platform, and
support and consulting fees as rendered.
The ITEX proprietary online marketplace, web interface, and client
relationship management platform (CRM) can be customized and branded
for a variety of online marketplaces or communities. The platform is
unique in its ability to track both cash transactions and those
based on non-cash, digital currencies.
ITEX Corporation's report on Form 10-Q can be found at