Intershop Communications AG | Ad Hoc Announcement |
Intershop announces comprehensive restructuring program
Jena, April 27, 2007 – Intershop Communications AG (Prime Standard: ISH2) today announced the launch of a comprehensive restructuring program.
Effective immediately, the following restructuring measures will be implemented as part of this program:
- The sales management departments in Jena will be reduced from six to three, with the aim of making sales more efficient through faster decision-making processes and improved transparency in staff deployment, as well as reducing management staff costs.
- The sales locations in France, Italy, and Austria will be closed. With the exception of Germany, all European sales activities will focus on the successful sales office in Belgium.
- Sales and marketing staff costs will be reduced considerably.
- All contract projects in development and support will be clearly reduced. The planned savings according to preliminary estimate resulting from all measures amount to approximately EUR 4.5 million per year.
The Company anticipates that the effects of the cost-cutting measures will already have an impact in the third quarter of 2007. The Company will announce further details of its global restructuring program at its Annual Stockholders’ Meeting on May 9, 2007.
Intershop Communications AG (founded in Germany 1992; Prime Standard: ISH2) is the leading independent provider of omni-channel commerce solutions. Intershop offers high-performance packaged software for internet sales, complemented by all necessary services. Intershop also acts as a business process outsourcing provider, covering all aspects of online retailing up to fulfillment. Around the globe more than 300 enterprise customers, including HP, BMW, Würth, and Deutsche Telekom run Intershop solutions. Intershop is headquartered in Jena, Germany, and has offices in the United States, Europe, Australia, and China. More information about Intershop can be found online at www.intershop.com.
This news release contains forward-looking statements regarding future events or the future financial and operational performance of Intershop. Actual events or performance may differ materially from those contained or implied in such forward-looking statements. Risks and uncertainties that could lead to such difference could include, among other things: Intershop's limited operating history, the unpredictability of future revenues and expenses and potential fluctuations in revenues and operating results, significant dependence on large single customer deals, consumer trends, the level of competition, seasonality, risks related to electronic security, possible governmental regulation, and general economic conditions.