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21.01.2003
Intershop Meets Fourth Quarter 2002 Financial Targets; Announces Further Cost Reductions
Intershop expects to be cash positive in the fourth quarter of 2002 Jena, Germany – January 21, 2003 – Intershop Communications AG (Prime Standard: ISH, Nasdaq: ISHP), a leading provider of e-commerce software for enterprises, today announced preliminary results for the fourth quarter ended December 31, 2002.
Intershop expects to have met its stated fourth quarter 2002 guidance for revenue as well as for earnings before interest, taxes, depreciation, and amortization (EBITDA). With a significant sequential increase in fourth quarter 2002 revenue and fourth quarter 2002 EBITDA near break-even, the company expects to be cash positive at the end of the fourth quarter of 2002. Leveraging its new Enfinity MultiSite capabilities and the momentum of its recent sales successes, Intershop is due to announce a focused market strategy on January 23, 2003. In addition, the company plans to reduce its total operational cost base (cost of revenue and operating cost) by about 20 percent, to a quarterly run rate of approximately Euro 13 million.
In view of likely volatility in the e-commerce market, the cost saving plan is aimed at redeploying the company’s resources to better execute its strategic plan. Intershop’s cost saving actions are expected to be completed in the first quarter of 2003, when the company anticipates taking a restructuring charge of approximately Euro 1.5 million, with savings being fully realized from the second quarter of 2003 onwards. Intershop will announce complete financial results for the fourth quarter 2002 and the full year 2002 along with further details on its cost reduction plan on February 14, 2003.
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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