Bellevue, WA June 9, 2010 ITEX Corporation (OTCBB: ITEX), The Membership Trading CommunitySM, 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 2010 third quarter ended April 30, 2010. The financial statements for all periods presented in this press release have been adjusted to reflect the 1:5 reverse stock split effective May 3, 2010.
We executed quite well in the third quarter and I’m pleased to recognize gains in revenue and income from operations compared to last year’s third quarter, said Steven White, Chairman and CEO. Revenue growth was primary due to our media and web services initiatives, which also provided the benefit of additional transaction opportunities for our members. Income from operations increased as a result of revenue growth and a reduction in depreciation and amortization expense. Our increased cash position reflected our operational income.
Mr. White continued, Revenue from our core business remains steady and our cash flow strong. With our stable financial footing, we will continue to focus our efforts on organic growth, enhancing our internet and web services platforms and creating more stockholder value. We are pleased to distribute our first ever quarterly dividend on June 30, 2010, to stockholders of record as of close of business on June 15, 2010.
Third Quarter 2010 Highlights
· Income from operations increased to $421,000 from $344,000 in the same period last year;
Revenue increased to $4,158,000 from $3,981,000 in the same period last year;
· Net income increased to $269,000 from $224,000 in the same period last year;
· Earnings per share increased to $0.08 from $0.06 in the same period last year;
· Cash at end of period increased to $4,193,000 from $2,557,000 on July 31, 2009;
· Stockholder equity increased to $14,722,000 from $13,981,000 on July 31, 2009;
· Broker incentive expense of $50,000 was recorded in the quarter for a computer upgrade initiative planned in conjunction with the upcoming launch of Office 2010. $79,000 was expensed for the same incentive in the second quarter of 2010, with a total expense of $129,000 in the nine-months ended 2010;
· Repurchased and retired 4,667 common shares.
Subsequent Events
· Effective as of May 3, 2010 (Effective Date), the Company amended its Articles of Incorporation to effect a one for five reverse stock split of its common stock Every five shares of ITEX’s common stock issued and outstanding immediately prior to the Effective Date were automatically combined into one issued and outstanding share. Stockholders who were entitled to fractional shares received a cash payment in lieu of receiving fractional shares. The number of shares of ITEX’s common stock issued and outstanding was reduced from 18,027,914 shares to approximately 3,605,307 shares.
· On May 11, 2010, the Board of Directors declared a cash dividend in the amount of $0.025 per share, payable on June 30, 2010 to stockholders of record as of the close of business on June 15, 2010.
ITEX Corporation’s report on Form 10-Q can be found at www.sec.gov.
