Intershop Communications AG | Press Release |

Intershop closes fiscal year 2010 with another record

  • Revenues rise by 20% to EUR 38.3 million in line with forecast
  • EBIT increase by 12% to EUR 2.2 million
  • Cash and cash equivalents go up by 160% to EUR 16.4 million

Jena, February 23, 2011 – Today, Intershop Communications AG (ISIN: DE000A0EPUH1), supplier of integrated e-commerce solutions, announced its preliminary figures for fiscal year 2010.

The Company increased revenues by 20% to a total of EUR 38.3 million thanks to a considerable rise in revenues from consulting services to strategic customers (platinum accounts). It therefore met its 2010 revenues forecast. Revenues from consulting and training went up by 64% to EUR 19.9 million and Maintenance and Other Revenues (full service business) increased by 8% and 55% respectively, all contributing to the revenue growth. Online Marketing remained steady at EUR 2.6 million, while revenues from licenses came to EUR 4.2 million, 39% lower than the positive result in the prior year. Preliminary gross profit increased proportionately to revenues to a large extent, coming in at EUR 17.9 million with the gross margin therefore amounting to 47%, the same level as in the prior year. Earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 35% to EUR 5.1 million, corresponding to an EBITDA margin of 13%. Results from operating activities (EBIT) increased by 12% to EUR 2.2 million.

Intershop prepares for the future

In fiscal year 2010, operating expenses went up by around 20% year-on-year, mainly as a result of the Company’s investments in innovation. Intershop recruited 56 new employees in the prior year to prepare its workforce for future growth. Headcount as of December 31, 2010, came to 356 and the Company plans to recruit more people in 2011. Investments are reflected in the rise in research and development expenses. Other reasons for the increase in expenses were higher write-downs on software development costs and a rise in legal and consultancy fees incurred in particular in connection with the three general meetings in the past year. Earnings before tax went up from EUR 2.1 million to EUR 2.3 million and consolidated earnings after tax for the period amounted to EUR 1.9 million compared to EUR 1.7 million in the prior year. Earnings per share (basic and diluted) were EUR 0.07, almost the same as in the prior year due to the larger number of shares (2009: EUR 0.07 basic).

Intershop’s preliminary consolidated balance sheet as of December 31, 2010, showed a very strong financial position. The company still had no financial liabilities and its equity ratio was 68% compared to 64% at the end of 2009. Total assets rose by 26% to EUR 36.2 million compared with December 31, 2009. Cash and cash equivalents went up by 160% from EUR 6.3 million to EUR 16.4 million at the end of 2010.

Intershop generated positive operating cash flow of EUR 7.4 million in 2010 (prior year: EUR 0.8 million). Including cash flow from financing activities less investments, net change in cash and cash equivalents went up by EUR 10.1 million compared to the cash position at the end of 2009.

Further growth expected in 2011

Overall, Intershop achieved its revenues and earnings targets in the prior year. The strategic partner GSI Commerce has developed into one of Intershop’s largest customers within the space of a few months and the joint projects in the US are making good progress. Further acquisitions of new customers and the positive development of the other platinum accounts also contributed to the positive result. The Management Board expects further revenue growth and sustainable positive earnings in 2011. A more detailed forecast will be published during the course of the year.

All figures are of a preliminary nature and have yet to be approved by the auditor of the financial statements.

Contact:

Investor relations
Stephan Leschke
Phone: +49-3641-50-1371
Fax: +49-3641-50-1309
ir@intershop.de

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About Intershop

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.

Intershop Public Relations

Heide Rausch

Head of Corporate Communication

Phone: +49 3641 50-1000
Fax: +49 3641 50-1309