Intershop Communications AG | Ad Hoc Announcement |
Intershop: Impairment on Quelle receivable
The move is due to the planned discontinuation of Quelle Deutschland’s operations
- Exact volume of impairment still to be ascertained
- Negative Q3 result expected
Jena, October 20, 2009 – Intershop Communications AG, a provider of integrated e-commerce solutions, will be making an impairment of several hundred thousand euros on existing receivables from its customer Quelle Deutschland. This move is due to the planned discontinuation of Quelle Deutschland’s operations announced yesterday evening in the wake of the insolvency. The exact amount of the impairment is still being assessed. There is however certainty that a negative result will be posted for Q3 2009.
Intershop is the e-commerce service provider for the mail order company Quelle as well as a number of the company’s specialized mail order retailers and foreign subsidiaries. These are currently not affected by the liquidation, according to the insolvency administrator of the Quelle parent company Arcandor.
The impairment as a result of Quelle Deutschland ceasing operations, will also have an impact on Intershop’s full year guidance. The Board of Management is anticipating that the expected increase in revenues of at least 7% will not be achieved, as the potential insolvency of Quelle will result in lost revenues of several hundred thousand euros. Despite this decline in revenues, the Board of Management is expecting business to be positive in Q4 given the encouraging development of other customers.
More detailed revenues and earnings forecasts for the financial year 2009 will be announced as soon as the exact amount of the impairment has been ascertained.
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.