Intershop Communications AG | Ad Hoc Announcement |
Intershop posts profit in third quarter of 2007
Intershop generated positive earnings of EUR 0.6 million after tax
- Revenues increased 61% year-on-year
- Cash position increases
Jena, October 25, 2007 - Intershop Communications AG (Prime Standard: ISH2) generated positive earnings of EUR 0.6 million after tax in the third quarter of 2007. Cost reductions due to restructuring measures are starting to have a positive effect. Revenues increased by 61% year-on-year to EUR 7.9 million.
In the third quarter of 2007, total revenues increased by 61% year-on-year from EUR 4.9 million to EUR 7.9 million. Total revenues in the first nine months of 2007 rose by 58% as against the prior-year period from EUR 14.3 million to EUR 22.5 million. Revenues in the first nine months of 2007 are therefore already higher than the 2006 full-year revenues of EUR 19.8 million.
License revenues included in total revenues doubled from EUR 0.6 million in the third quarter of 2006 to EUR 1.2 million in the third quarter of 2007. On a nine-month basis, license revenues rose by 18% from EUR 3.5 million in 2006 to EUR 4.1 million in 2007.
Service revenues increased by 55% from EUR 4.3 million in the third quarter of 2006 to EUR 6.7 million in the third quarter of 2007. In the first nine months of 2007, the Company generated service revenues of EUR 18.4 million, compared with EUR 10.8 million in the prior-year period. These revenues include online marketing revenues only as of the third quarter of 2006.
The result from operating activities (EBIT) was EUR 0.6 million in the third quarter of 2007, the first time it has been positive for six quarters. EBIT in the prior-year quarter was EUR -1.5 million. The EBIT margin rose from -31% to +7%. Earnings after tax reached EUR 0.6 million at the end of the third quarter. In the third quarter of 2006, earnings after tax were EUR -1.6 million. Earnings per share were EUR 0.03. The third quarter of 2006 recorded a loss of EUR 0.07 per share.
In the first nine months of 2007, EBIT rose from EUR -3.9 million in 2006 to EUR -2.4 million. Thus the positive EBIT in the third quarter of 2007 could not offset losses from the first half of 2007. Net loss for the first nine months of fiscal year 2007 was EUR 2.5 million or EUR 0.11 per share, compared with EUR 4.4 million or EUR 0.20 per share in the prior-year period. This represents a reduction of 44%.
Balance Sheet and Cash Flow
Equity rose 31% in the past 12 months and amounted to EUR 11.3 million as of September 30 this year. The equity ratio was 47%.
Cash flow in the third quarter of 2007 was also positive. Unrestricted cash increased from EUR 3.6 million as of December 31, 2006 and EUR 2.7 million as of June 30, 2007 to EUR 5.2 million as of September 30, 2007. Total liquidity (cash and restricted cash) was EUR 9.3 million as of September 30, 2007, compared with EUR 9.0 million as of June 30, 2007 and EUR 11.2 million as of December 31, 2006.
Intershop received EUR 4.8 million from a cash capital increase implemented in August 2007. At the same time, Intershop paid the landlord of its headquarters in Jena a partial amount of EUR 4.0 million on the total settlement of EUR 5.5 million in the third quarter of 2007.
In light of the positive growth in the third quarter of 2007 on the back of significant cost reductions and increased revenues in its service functions, Intershop is expecting a positive after-tax earnings and a positive cash flow for the second half of 2007.
The full press release relating to this adhoc disclosure is available at www.intershop.com.
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.