ITEX Posts 19% Revenue Increase For Third Quarter 2008

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 the results for its 2008 third quarter ended April 30, 2008.

“We are pleased to report a 19% revenue increase for the third quarter compared to the same quarter last year,” Chairman/CEO Steven White pointed out. “EBITDA increased 14% for the third quarter and 10% for the nine month period compared to the same period last year. Due to timing differences in our operating cycles this period over the same period last year, net cash from operations was reduced by $372,000 as a result of an additional commission and payroll payment made this quarter.”

White continued, “Corporate salaries, wages, and employee benefits increased over last year in dollar terms, however, these expenses declined slightly as a percentage of revenue. SG&A increased primarily due to an increase in bad debt expense, and to a lesser extent, legal and other fees associated with the unsolicited tender offer. We also expanded our headcount and increased costs associated for revenue generating activities.

"With economic uncertainty and a weakened business climate, we believe that our cashless transaction model and trading community is becoming more attractive to budget-conscious businesses. We are pursuing initiatives, including regional and national partnerships and search engine optimization, to maximize new member registrations and are seeing positive results from our ongoing efforts.

“In addition, we are optimistic that our utilization of investor relations and financial advisory services will provide greater visibility for ITEX in the institutional financial community and will lead to new strategic alliances that are expected to continue to expand our marketplace.”