Intershop Communications AG | Press Release |

Intershop Communications AG Reports Fourth Quarter and Full Year 2006 Financial Results

Jena, Germany, February 15, 2007 - Intershop Communications AG (Prime Standard: ISH2) today announced financial results for the fourth quarter 2006 and full financial year 2006, ended December 31, 2006.

Fourth quarter 2006 revenue rose as against the previous quarter from Euro 4.9 million to Euro 5.5 million, compared with Euro 5.3 million in the fourth quarter of 2005. License revenue rose by Euro 1.0 million in the fourth quarter of 2006 as against the third quarter of 2006 to Euro 0.6 million, compared with Euro 1.6 million in the fourth quarter of 2006. Intershop’s total revenues increased from Euro 17.8 million in fiscal year 2005 to Euro 19.8 million in fiscal year 2006. Total operating costs (cost of revenues plus operating expenses) amounted to Euro 7.9 million in the fourth quarter of 2006, compared with Euro 6.4 million in the previous quarter and Euro 4.6 million in the fourth quarter of 2005. The total operating costs for the fiscal year amounted to Euro 26.1 million in 2006, as compared with Euro 20.0 million in 2005.

Intershop reported Euro 2.4 million in net loss in the fourth quarter of 2006 or Euro 0.11 per share, compared to a net loss of Euro 1.6 million or a net loss of Euro 0.09 per share in the third quarter of 2006. In comparison, Intershop’s net income in the fourth quarter of 2005 was Euro 0.2 million or Euro 0.01 per share. For the full year of 2006, Intershop’s net loss totaled Euro 6.8 million or a net loss of Euro 0.36 per share, compared to a net loss of Euro 3.4 million or a net loss of Euro 0.18 per share for the full year of 2005. Total cash, including cash and cash equivalents, marketable securities, and restricted cash fell from Euro 13.5 million as of December 31, 2005 to Euro 11.2 million as of December 31, 2006. The amount of unrestricted cash included in this total amounting to Euro 3.6 million as of December 31, 2006, compared to Euro 7.3 million as of December 31, 2005.

Operating Highlights for the Fourth Quarter of 2006

  • Intershop's first full-service e-commerce customer, Wolford AG, launched its e?commerce portal on November 28, 2006. The project involves Intershop handling all online business processes for this new customer.
  • New customers gained by Intershop included TomTom, the Dutch navigation system manufacturer, BYGGmax, the Swedish home improvement chain, Electronic Software Distribution (ESDNOW), the Dutch software distributor, and Warehouse Stationery Limited, a major stationery supplier in Australia, New Zealand, and Asia.
  • Mobilkom austria, a market-leading Austrian cellular network provider and Intershop customer, launched its new online platform, which is powered by Intershop's Enfinity Suite 6 software.
  • Baur Fulfillment Solutions, a subsidiary of Baur Versand, has signed a cooperation agreement with Intershop. The two companies are cooperating in the area of fulfillment and are joining forces to market a comprehensive range of services in this sector.
  • Intershop and FIEGE, one of Europe's leading logistics service providers, entered into a comprehensive partnership agreement for supply chain services required for pan-German international projects.
  • The Bundesverband Digitale Wirtschaft e.V. (BVDW - German Digital Industry Association) awarded Intershop's Online Marketing business unit its SEM and SEO certificate for the customer-friendly and professional way Intershop markets paid listing services (SEM) and search engine optimization (SEO).
  • In October 2006, Intershop staged the Intershop Open, Eastern Germany's largest e-commerce conference, with over 200 guests attending from Europe and the U.S.
  • In late October 2006, Intershop attended the Deutscher Versandhandelskongress (German Mail-Order Conference) in Wiesbaden, the most important German congress in the mail-order industry. Lenscare AG, Europe's largest mail-order supplier of contact lenses and accessories and an Intershop customer, was presented the 2006 "Online Store of the Year" award.
  • As of December 31, 2006, the company employed 247 full-time equivalent employees, as compared to 244 full-time equivalent employees as of September 30, 2006. As of December 31, 2005 the company employed 222 full-time equivalent employees.

Outlook

Given the positive market forecasts for the development of e-commerce, Intershop anticipates a significant increase in revenues year on year. Intershop expects to generate a positive net result and cash flow in fiscal year 2007.

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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