Archive
17.11.1998
9-Month-Report 1998
Sales More Than Quadruple.
INTERSHOP Communications AG, a world leader in the rapidly expanding market for standard electronic commerce software, today presented its report on the first nine months of fiscal 1998 following publication of tentative data on sales and profits in October. With the appearance of its first interim report as a publicly owned stock company incorporated in Germany, INTERSHOP is reporting in DM for the first time. Worldwide revenues for the first nine months of 1998 came to DM 22.7 million, which represented an increase of DM 17.3 million or 323 % and more than quadruple the figure for the comparable period a year earlier. This improvement resulted chiefly from encouraging developments in the USA, where INTERSHOP Communications was able to add to its share of the market despite intense competition.
In addition to orders from existing customers, INTERSHOP once again succeeded in adding major telcos and Internet service providers to its list of customers to reinforce its position of leadership in the market for standard hosting solutions. Income from licenses accounted for 60 % of sales and income from services for 38 %. The operating loss for the period came to DM -28.4 million as compared a loss of DM -7.3 million for the comparable period a year earlier due to expanding investments in R&D, sales and marketing. The operating loss reflects also a one-time expense in connection with an out-of-court settlement in the amount of DM 3.6 million made prior to the company’s listing on the stock market as well as extraordinary outlays in connection with the IPO and the reorganization of INTERSHOP’s corporate structure. Net income for the first nine months of the year came to DM -26,5 million as compared with DM -6.9 million for the first three quarters of 1997. Cash and cash equivilants came to DM 73.0 million as compared with DM 16.3 million a year ago. Shareholder´s equity was to DM 64.9 million (DM -7,4 million).
The Management is of the opinion that the strong upward momentum in sales will continue throughout the remaining three months of the year and expects to achieve its sales target of DM 34 million for the year. On the expense side, the cost curve started to flatten out in the third quarter of the year, and it is expected that this trend will also continue and result in further improvement in operating results. The Management expects to reach break-even by the fourth quarter 1999.
Investor Relations:
Annett Körbs
T: +49-3641-50-1370
F: +49-3641-50-1309
ir@intershop.de
Public Relations:
Dr. Ute Danz
T: +49-3641-50-1000
F: +49-3641-50-1002
pr@intershop.de
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