Itex Corp (OTC:ITEX)

BELLEVUE, Wash., March 14, 2013 /PRNewswire/ -- 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 2013 second quarter ended January 31, 2013.

Second Quarter 2013 Results (Compared to Second Quarter 2012)

• Income from Operations increased 76% to $499,000 compared to $283,000
• Earnings per share increased 17% to $0.14 compared to $0.12
• Revenue decreased 6% to $3,960,000 compared to $4,229,000
• SG&A expenses decreased 34% to $368,000 compared to $558,000
• Cash increased 27% to $2,461,000 compared to $1,942,000 at fiscal year-end July 31
• Paid a $0.04 per share cash dividend.

Revenue Trends and Growth. As discussed above, we experienced a downturn in revenue this quarter due to the reduction in transaction volume and the number of members. In addition to a difficult economic environment for our business members, we believe revenues were adversely affected, in part, by the distraction and disruption caused by a recently concluded proxy contest for control of the Company and related litigation (See Note 3 ― “Legal Proceedings and Litigation Contingencies” included in the “Notes to Consolidated Financial Statements”). Although we seek to increase revenues through organic growth and the development of new revenue sources, the primary driver of revenue growth in recent years has been through our business acquisitions. These acquisitions are intermittent and cannot be relied upon as a future source of revenue growth, because of the absence of acquisition candidates, lack of financing, or unacceptable terms. We have approximately 30% recurring revenues from fixed association fees. Approximately two-thirds of our net revenues each quarter come from variable transaction fees. We continue to work to expand our membership base which we expect will increase recurring and transactional revenues.