microcap speculator

Las Vegas ticket broker Tix Corporation (TIXC) hit new highs today after it announced that it had settled a proxy contest with its largest investor, Baker Street Capital.  Under the settlement, Baker Street will appoint three members to the board of directors.

Under the terms of the agreement, Tix has expanded its Board of Directors from five to eight directors and has appointed three designees selected by Baker Street (Vadim Perelman, Kenneth H. Traub and Mark D. Stolper) to the Board. The size of the Board will not exceed eight directors prior to the 2015 Annual Meeting of Stockholders. Tix has agreed to nominate and recommend the same three designees for election to the Board at the 2011 Annual Meeting of Stockholders. Baker Street has withdrawn its separate nomination of five candidates for election to the Board of Directors, but will have a right to designate up to three nominees for election to the Board at each of the 2012, 2013 and 2014 Annual Meetings of Stockholders, provided it maintains certain minimum stock ownership levels.

Investors apparently hope that the rejiggered board will spur better results.  The last quarterly results, posted in May, were uninspiring.

First quarter 2011 revenues decreased 12% to $6.4 million, compared with $7.3 million for the same period in 2010. Our Ticketing Services segment reported increased revenues which were offset by a decline in revenues from our Exhibit Merchandising segment in the first quarter of 2011 compared to the same period in 2010.

First quarter 2011 income from continuing operations decreased to $118,000 or $0.00 per diluted common share compared to $244,000 or $0.01 per diluted common share for the same period in 2010. The decline in income from continuing operations was due to our 12% decline in revenues, an increase in direct costs as a percentage of revenues offset by an improvement in our consolidated selling, general and administrative expenses of $569,000 as compared to the same period in 2010. Included in the cost savings of $569,000 is a reduction in corporate expenses, excluding stock based compensation expense, of approximately $450,000 related to cost savings on governance and regulatory costs associated with moving our stock listing to the OTCQX exchange, deregistering our common stock under the Securities Exchange Act of 1934, and other expense reduction efforts.

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