Intershop Communications AG | Ad Hoc Announcement |
Intershop reports sharp jump in revenue and earnings in Q1 compared to prior-year quarter
Positive net earnings before tax of EUR 0.4 million
- 35% sales growth over prior-year period
- Intershop consistently profitable with EBIT margin at 6%
Jena, Germany, May 7, 2008 – Intershop Communications AG (Prime Standard: ISH2) today announced its results for the first quarter of 2008 ended March 31, 2008.
In the first quarter of 2008, Intershop generated positive net earnings before tax of EUR 0.4 million. In the prior-year period, the Company had reported a quarterly loss of EUR 1.4 million. Intershop has therefore recorded a profit from operating activities before restructuring expenses (2007) for the past four quarters and positive net earnings for three consecutive quarters.
In the first quarter of 2008, Intershop’s total net revenues rose by 35% from EUR 5.1 million in the prior-year quarter to EUR 6.9 million. The license revenues included in this figure increased by 31% from EUR 0.8 million to EUR 1.1 million. Net revenues from services, maintenance, etc. increased by 35%, from EUR 4.3 million to EUR 5.9 million.
Gross revenues (net revenues including media revenue from online marketing) increased from EUR 6.1 million to EUR 8.1 million.
Intershop generated a profit in the first three months of fiscal year 2008, sustaining the positive earnings trend that began in 2007.
The result from operating activities (EBIT) amounted to EUR 0.4 million in the first quarter of 2008. In the prior-year quarter, EBIT was negative at EUR 1.4 million. The EBIT margin improved from -26% to +6%. Earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to EUR 0.5 million (Q1 2007: EUR 1.1 million); the EBITDA margin amounted to 8% (Q1 2007: -22%).
Earnings after tax totaled EUR 0.3 million, while Intershop’s earnings per share were EUR 0.01. In the first quarter of the previous year, earnings after tax were negative at EUR -1.4 million, and the Company reported a loss per share of EUR 0.06.
Balance sheet and cash flow
Intershop’s equity stood at EUR 13.0 million as of March 31, 2008. The equity ratio therefore rose from 26% as of March 31, 2007 to 51%.
Unrestricted cash increased from EUR 5.9 million as of December 31, 2007 and EUR 1.8 million as of March 31, 2007 to EUR 6.9 million (+16%) as of March 31, 2008. Total liquidity (cash and restricted cash) amounted to EUR 8.5 million as of March 31, 2008, in comparison to EUR 8.1 million as of March 31, 2007, and EUR 9.9 million on December 31, 2007.
Intershop’s results in the first quarter of 2008 confirm the target it announced for the year as a whole of growth in excess of the industry average and the expectation that it will generate significant profits in the current year.
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.