Announces Results For Second Quarter 2008
Corporation (OTCBB:ITEX), a leading marketplace for cashless
business transactions in North America, has filed its Form 10Q with
the Securities and Exchange Commission and announced its results for
its 2008 second quarter ended January 31, 2008.
pleased to report a 14% increase in second quarter revenue over the
same quarter last year. Increased revenue positively impacted net
cash provided by operating activities which increased a remarkable
141% for our second quarter over the same quarter last year,� said
Steven White, Chairman and CEO.
quarter is historically strong due to holiday events and year-end
business spending. Contributing to this quarter�s results are our
three corporate-managed offices that are showing steady increases in
enrollment and transaction volume.
quarter, we have been able to report positive net cash provided by
operating activities. During the second quarter, we received 87% of
our net payments from members via credit card or electronic funds
transfer (EFT). EFT enables us to collect payments sooner and
lessens the likelihood of non-payments. Strong cash flow has been an
important component in helping us complete three key acquisitions,
buying back and retiring our common stock, and pursuing initiatives
to increase future revenues.�
continued, �Several of our revenue initiatives over the last twelve
months are beginning to gain traction, including our hiring of an
industry veteran as our national sales manager and engaging a
seasoned new member registration individual in our Chicago location.
corporate salaries, wages and employee benefits and selling, general
and administrative have increased over last year as we invest in new
revenue generating activities; however, as a percentage of revenue
these expenses have trended downward from 41% in 2003 to 22% today.
While continuing to refine and enhance our current initiatives, we
will be devoting resources to our newest revenue generating
initiative, Software as a Service, which we announced last week.�
$4,175,000 in 2008 compared to $3,665,000 for the second quarter in
2007, a 14% increase. Revenue for first six months of 2008 was
$8,028,000 compared to $7,455,000 in the same period in 2007, an 8%
For the quarter and
six month period, generated revenue from the acquisition of Intagio
assets was $352,000 and $639,000, respectively, and $119,000 and
$211,000 in organic growth from existing operations, respectively.
Net cash provided by
operating activities for the second quarter increased to $1,018,000
from $423,000 for the same period in 2007, a 141% increase. For the
six month period ended January 31 net cash provided by operating
activities increased 31% to $1,785,000 from $1,367,000 for the same
period in 2007.
increased $413,000 or 3% to $12,754,000 at January 31 from October
31, 2007. Cash and cash equivalents increased to $1,091,000 as of
January 31 from $254,000 on October 31, 2007.
operations excluding the non-cash items of stock-based compensation,
depreciation, and amortization was $671,000 or 4-cents per share for
the second quarter of 2008, and $1,128,000 or 6-cents per share for
the six month period of 2008.
registrations increased 28% to 632 in the second quarter from 492 in
the same period last year, and for the six month periods
registrations increased 19% to 1,588 from 1,333.
ITEX acquired a 15%
equity position in MyTypes, Inc., a Seattle-based technology and
small business blogging company. As part of the collaboration, they
engaged two MyTypes senior software engineers to work on our search
engine optimization and marketing initiatives for a limited time.
ITEX retained two top
Chicago marketing firms - The Goodness Company and Sigale Public
Relations - to provide additional, professional assistance to its
ITEX dismissed a
defamation complaint filed in September 2006 upon execution of a
stipulated judgment payable to the company in the sum of $100,000
contingent on certain, future events. There was no impact to
earnings or the balance sheet for this judgment.
Subsequent to the end
of the second quarter, a membership list had been acquired of
approximately 400 member businesses in Cleveland, Ohio.
concluded, �As our success and visibility increases, we expect to
become more attractive to the investment community, as evidenced by
the recent invitations to present at the Roth Capital 20th Annual
Growth Stock Conference in February and the upcoming Montgomery
Technology Conference in mid March. Meanwhile, as we expected, the
hostile tender offer is getting little attention from shareholders.
Income from operations for our second quarter includes our expenses
associated with responding to this tender offer.�
Corporation's report on Form 10-Q can be found at
For more information on ITEX visit