ITEX Reports 38% Increase In New Member Registrations & Cash Flow
Operations
Up 21%
ITEX Corporation (OTCBB:ITEX), a leading marketplace for cashless
business transactions in North America, has filed its Form 10-K with
the Securities and Exchange Commission and announced its results for
the fourth quarter and fiscal year ended July 31, 2009.
�Despite the challenging economic climate, in fiscal year 2009 we
recorded increases in revenues, total assets, stockholder equity,
more than doubled our cash position and retired all long term debt,�
said Steven White, Chairman and CEO. �Revenues increased 3% and net
cash provided by operating activities increased 21% in 2009 to
$2,875,000.
�We had a strong fourth quarter with revenue increasing 5% to
$4,257,000 from $4,065,000 in the same period last year ,and
operational income increasing 26% to $426,000 from $339,000. We
attribute these increases to our strategic initiatives, executed in
the past two fiscal years, providing earlier than anticipated
returns.
�During fiscal 2009, we continued to allocate resources for a number
of strategic initiatives such as developing our Web Services
program, executing a national strategic partnership strategy,
launching ITEX Media Services, and beginning a national
advertisement campaign in premier business publications. Many of the
expenses incurred were for start up and one-time costs. Our strong
operational cash flow and cash position will allow us to continue
investing in strategic initiatives.
�We are very pleased with our Software as a Service initiative which
resulted in two executed web services agreements � providing new
revenue streams for the company in addition to expanding trading
opportunities for our members. Under the agreements, for a one-time
platform subscription fee and a monthly transaction processing fee
ITEX hosts the web interface, client-relationship management
platform and is responsible for transactional processing. We also
provide a proprietary processing technology that enables members of
any of our web services clients to seamlessly accept the digital
currency of another web services client.�
White concluded, �Another notable highlight for 2009 was a 38%
increase in new member registrations compared to 2008. With the
current economic uncertainty, we are well positioned to assist
existing and prospective members in generating new sales and
conserving precious cash. We have received considerable press in
recent months and expect new member registrations to remain strong
in 2010.�
Fiscal Year 2009 Highlights
�
Marketplace revenue increased 3% in 2009 to $16,502,000, from
$15,964,000 in 2008;
�
Cash and cash equivalents increased 141% in 2009 to $2,557,000, from
$1,061,000 in 2008;
�
Stockholders� equity increased 5% in 2009 to $13,981,000, from
$13,319,000 in 2008;
�
Total assets increased 3% in 2009 to $16,661,000, from $16,149,000
in 2008;
�
Acquisition and launch of ITEX Media Services;
�
National partnership strategy launched with execution of an
agreement with iCare, a division of SYSCO, Inc., a supplier of
products and services to the food service and hospitality
industries;
�
Executed two web services agreements;
�
Registered 4,503 new members in 2009, versus 3,248 in the prior year
period, a 38% increase;
�
Retired early the remaining balances of notes for two acquisitions,
leaving the company with no long-term debt;
�
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 with a lower interest rate;
�
Fourth quarter revenue increased 5% to $4,257,000 compared to
$4,065,000 last year;
�
Fourth quarter income from operations increased 26% to $426,000,
from $339,000 in 2008.
For more information on ITEX�s Form 10-K
click here.