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ITEX Announces Results for Second Quarter of Fiscal Year 2011
Mar 10, 2011 (03:03 PM EST)


BELLEVUE, Wash., March 10, 2011 /PRNewswire/ -- ITEX Corporation (OTC Bulletin Board: ITEX), The Membership Trading Community(SM), a leading marketplace for cashless business transactions in North America, today filed its Form 10-Q with the Securities and Exchange Commission and announced results for its fiscal 2011 second quarter ended January 31, 2011.

Second Quarter 2011 Highlights

  • Revenue of $4.417 million compared to $4.537 million in the same period last year;
  • Income from operations of $235,000 compared to $526,000 in the same period last year;
  • Net income of $151,000 compared to $172,000 in the same period last year;
  • Cash at end of period increased to $5.612 million from $5.169 million on July 31, 2010;
  • Stockholder equity increased to $15.012 million from $14.869 million on July 31, 2010;
  • Paid a $0.04 per share quarterly cash dividend.

About ITEX

ITEX, The Membership Trading Community(SM), is a leading marketplace for cashless business transactions. Members increase sales through an exclusive distribution channel managed by our broker and franchise network, by utilizing ITEX dollars to exchange goods and services.  We generate revenue by charging members percentage-based transaction fees and association fees. ITEX is headquartered in Bellevue, WA.  We routinely post important information on the investor relations portion of our website. For more information, please visit www.itex.com.

ITEX CORPORATION

CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)



January 31, 2011


July 31, 2010





ASSETS




Current assets:




    Cash and cash equivalents

$                  5,612


$                5,169

    Accounts receivable, net of allowance of $427 and $349

1,005


859

    Prepaid expenses

143


118

    Loans and advances

35


55

    Prepaid advertising credits

157


157

    Deferred tax asset

1,018


1,018

    Notes receivable - corporate office sales

129


125

    Other current assets

21


24

Total current assets

8,120


7,525





Property and equipment, net of accumulated depreciation of $430 and $380

127


169

Intangible assets, net of accumulated amortization of $2,456 and $2,205

814


994

Deferred tax asset, net of current portion

4,795


5,000

Notes receivable - corporate office sales, net of current portion

589


480

Other long-term assets

56


188

Goodwill

3,282


3,282

              Total assets

$                17,783


$              17,638





LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable

$                       68


$                   124

Commissions payable to brokers

384


661

Accrued commissions to brokers

1,167


789

Accrued expenses

753


705

Deferred revenue

114


133

Advance payments

128


167

Total current liabilities

2,614


2,579





Long-term liabilities:




      Other long-term liabilities

157


190

Total Liabilities

2,771


2,769





Commitments and contingencies








Stockholders’ equity:




Common stock, $0.01 par value; 9,000 shares authorized;
3,583 and 3,576 shares issued and outstanding, respectively

36


36

Additional paid-in capital

29,160


29,138

Accumulated deficit

(14,184)


(14,305)

Total stockholders' equity

15,012


14,869

               Total liabilities and stockholders’ equity

$                17,783


$              17,638








ITEX CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share amounts)




Three-Months Ended

January 31,


Six-Months Ended

January 31,




2011


2010


2011


2010












Revenue:










Marketplace revenue and other revenue

$          4,417


$        4,537


$    8,530


$     8,460












Costs and expenses:










Cost of Marketplace revenue

2,764


2,907


5,243


5,456



Corporate salaries, wages and employee benefits

554


479


1,017


891



Selling, general and administrative

709


462


1,434


915



Depreciation and amortization

155


163


309


333




4,182


4,011


8,003


7,595












Income from operations

235


526


527


865












Other income (expense)










Net interest

10


10


20


21



Gain (loss) on sale of assets

-


(257)


34


(157)




10


(247)


54


(136)












Income before income taxes

245


279


581


729













Provision for income taxes

94


107


227


280












Net income

$             151


$           172


$       354


$        449












Net income per common share:










Basic

$            0.04


$          0.05


$      0.10


$       0.13



Diluted

$            0.04


$          0.05


$      0.10


$       0.13












Weighted average shares outstanding










Basic

3,581


3,575


3,580


3,569



Diluted

3,588


3,578


3,587


3,571




SOURCE ITEX Corporation