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30.04.1999
Final Results 1998 and Preliminary Revenues Q1 1999
Hamburg, 30th of April 1999 - At a press conference held today, Hamburg-based INTERSHOP Communications AG, one of the world’s leading providers of electronic-commerce software, announced its official 1998 financial results. The company also supplied preliminary data on the first-quarter performance for 1999.
First-Quarter Revenues Up. Preliminary data show that INTERSHOP’s first-quarter revenues were DM 13.6 million, an increase of DM 6.7 million or 98% over the comparable 1997 figure. Improved performance in both Europe and the U.S.A. contributed to this increase.
This performance is especially encouraging since first-quarter activity is traditionally slow in the software industry. According to INTERSHOP CFO Wilfried Beeck, “Many companies waited for CeBIT to choose their electronic-commerce solution. For INTERSHOP, CeBIT was a big success. The demand for INTERSHOP products was greater than ever before. We received a large number of major orders, which will have a positive effect upon second-quarter results, and we are very optimistic about 1999 on the whole”. In the first three months of 1999, INTERSHOP was once again able to attract a substantial number of new customers, including leading telecommunications companies in the U.S.A. and Europe.
INTERSHOP will announce its first-quarter financial results in an interim report in May. As in the past, this quarterly report will be subjected to a limited review by the company’s auditors. Strong Expansion in 1998.
In 1998, INTERSHOP recorded revenues of DM 35.0 million, which represented an increase of 255% over the comparable figure of DM 9.8 million for the previous year. U.S. revenues for the quarter were up 518% to DM 11.6 million. After only a very short period of time, INTERSHOP has moved up into the ranks of the leading providers of e-commerce software in the U.S.A., and this has been documented by numerous sources. For example, Dataquest, a market-research organization, recently singled INTERSHOP out as the world’ fastest-growing provider in its market. According to IDC, INTERSHOP was also the world leader in terms of the number of live online stores.
As a result of the company’s strong expansion, 1998 operating expense went from DM 23.2 million to DM 72.1 million, which includes one-time charges in the amount of DM 3.7 million for a legal settlement made in connection with rights to the company name prior to the company’s appearance on the stock market. Operating loss for the year came to DM 37.1 million as compared with DM 13.3 last year. Other income came to DM 3.1 million as compared with DM 0.4 million in 1997. As a result, INTERSHOP ended 1998 with a loss of DM 33.9 million as compared with a loss of DM 13.7 million for the previous year, which represents a loss of DM 6.22 per share in 1998.
Outlook for 1999 INTERSHOP management expects business to continue to improve throughout the remainder of 1999. Revenues are expected to substantially outpace expense and result in a considerable improvement in operating results for the year.
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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