INX Inc

CIK:0001020017|SEC Filings

Condensed Statements of Operations (Unaudited) (USD $) In Thousands, except Share data	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Revenue:
Products	$ 84,689	$ 74,027	$ 257,691	$ 209,191
Services	14,040	10,886	36,902	29,825
Total revenue	98,729	84,913	294,593	239,016
Cost of goods and services:
Products	68,254	57,355	208,099	166,521
Services	10,557	8,407	28,433	23,743
Total cost of goods and services	78,811	65,762	236,532	190,264
Gross profit	19,918	19,151	58,061	48,752
Selling, general and administrative expenses	18,732	17,392	59,058	46,510
Operating income	1,186	1,759	(997)	2,242
Interest and other income (expense), net	4	(12)	35	68
Income before income taxes	1,190	1,747	(962)	2,310
Income tax expense (benefit)	(1,423)	820	(2,617)	(4,443)
Net income	$ 2,613	$ 927	$ 1,655	$ 6,753
Net income per share:
Basic (in Dollars per share)	$ 0.27	$ 0.10	$ 0.17	$ 0.73
Diluted (in Dollars per share)	$ 0.25	$ 0.09	$ 0.16	$ 0.69
Weighted average shares – basic (in Shares)	9,739,308	9,294,873	9,644,100	9,201,862
Weighted average shares – diluted (in Shares)	10,312,818	9,880,852	10,233,511	9,798,140

Condensed Statements of Cash Flows (Unaudited) (USD $) In Thousands	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
Cash flows from operating activities:
Net income	$ 1,655	$ 6,753
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	2,253	2,135
Share-based compensation expense	1,584	1,645
Deferred income taxes	(5,929)	(5,745)
Excess tax benefits from stock option exercises	0	(611)
Impairment charges	1,188	594
Adjustment to estimated acquisition contingent consideration	15	(254)
Provision for doubtful accounts	281	366
Loss on disposal of property and equipment		11
Changes in assets and liabilities that (used) provided cash:
Accounts receivable, net	(15,705)	(16,550)
Inventory	(5,714)	5,159
Accounts payable	(2,448)	2,290
Other assets and liabilities	2,910	4,099
Net cash used in operating activities	(19,910)	(108)
Cash flows from investing activities:
Purchases of property and equipment	(1,796)	(1,345)
Acquisition of NetTeks Technology Consultants, Inc.	(850)	(1,500)
Acquisition of Access Flow, Inc.		(273)
Proceeds from sale of property and equipment	32	1
Net cash used in investing activities	(2,614)	(3,117)
Cash flows from financing activities:
Borrowings under non-interest bearing floor plan financing, net	17,772	686
Excess tax benefits from stock option exercises	0	611
Proceeds from shares issued under Employee Stock Purchase Plan	0	573
Exercise of common stock options	68	10
Payments on other borrowings	(148)	(152)
Purchase of stock resulting from grantee election	(181)	(204)
Net cash provided by financing activities	17,511	1,524
Net decrease in cash and cash equivalents	(5,013)	(1,701)
Cash and cash equivalents at beginning of period	12,089	13,247
Cash and cash equivalents at end of period	7,076	11,546
Supplemental disclosure of non-cash finance and investing activities:
Contractual obligations	285	0
Purchase of software for debt	146	0
Acquisition of NetTeks Technology Consultants, Inc.	728	0
Acquisition of Access Flow, Inc.	0	249
Issuance of vested restricted common stock	$ 195	$ 842

Condensed Balance Sheets (Unaudited) (USD $) In Thousands	Sep. 30, 2011	Dec. 31, 2010
Current assets:
Cash and cash equivalents	$ 7,076	$ 12,089
Accounts receivable, net of allowance of $885 and $651	79,917	64,493
Inventory, net	8,953	3,239
Deferred costs	7,253	2,767
Deferred income taxes	7,612	4,146
Other current assets	1,154	960
Total current assets	111,965	87,694
Property and equipment, net of accumulated depreciation of $8,977 and $7,312	5,213	4,793
Goodwill	12,490	13,532
Intangible assets, net of accumulated amortization of $2,424 and $1,946	269	1,015
Deferred income taxes	4,492	2,029
Other assets	193	75
Total assets	134,622	109,138
Current liabilities:
Current portion of capital lease obligations	93	178
Accounts payable floor plan	58,901	41,129
Accounts payable	6,975	9,423
Accrued payroll and related costs	9,091	7,145
Accrued expenses	3,498	4,189
Deferred revenue	8,139	4,055
Other current liabilities	2,268	1,461
Total current liabilities	88,965	67,580
Non-current liabilities:
Non-current portion of capital lease obligations	0	55
Other liabilities	920	659
Total liabilities	89,885	68,294
Stockholders’ equity:
Preferred stock, $.01 par value, 5,000,000 shares authorized, no shares issued	0	0
Common stock, $.01 par value, 15,000,000 shares authorized, 9,760,973 and 9,514,542 issued and outstanding as of September 30, 2011 and December 31, 2010, respectively	97	95
Additional paid-in capital	60,013	57,777
Accumulated deficit	(15,373)	(17,028)
Total stockholders’ equity	44,737	40,844
Total liabilities and stockholders’ equity	$ 134,622	$ 109,138