Intershop Communications AG | Press Release |

Intershop further increases revenues and EBIT in the first half of 2011

  • Net revenues increase by 39% to EUR 23.0 million
  • EBIT of EUR 766 thousand – a rise of 82%
  • Best interim financial performance  in eight years

Jena, August 10, 2011 – Today, Intershop Communications AG (ISIN: DE000A0EPUH1), supplier of integrated e-commerce solutions, announced its financial performance for the first six months of 2011.

The Company increased its net revenues by 39% to EUR 23.0 million; all segments contributed to revenues growth. This positive development is due to the expansion of business with existing major customers (platinum accounts) as well as the acquisition of further projects.

License revenues increased to EUR 1.8 million, corresponding to a rise of 43%. Revenues from consultancy and training, the largest segment with a share of 56% in total net revenues, jumped by 53% to EUR 12.9 million. Maintenance revenues increased by 7% to EUR 5.1 million, whereas online marketing revenues grew by 37% to EUR 1.6 million year-on-year in the first half of 2011. Other revenues (full service and transaction platform) also rose by 68% to EUR 1.6 million.

Gross profit for the first six months of the year came out at EUR 8.8 million, corresponding to a gross margin of 38%. Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 1.4 million while the result from operating activities (EBIT) amounted to EUR 766 thousand representing an EBIT margin of 3.3%. Intershop generated total earnings after tax of EUR 1,112 thousand, a 182% rise compared to the previous year’s figure of EUR 395 thousand. Earnings per share, therefore, came to EUR 0.04 (diluted and undiluted) compared to EUR 0.01 in the previous year’s period.

Research and development (R&D) expenses went up by 35% to EUR 2,318 thousand. This rise was primarily due to the expansion of this sector’s workforce as well as the increased involvement of third parties.

The Company heavily invested in the sales and marketing, where expenses amounted to EUR 3,076 thousand compared to EUR 1,897 thousand in the previous year period resulting from additional marketing activities and higher investments in the sales partner network. By increasing its investments in these areas, the Company aims to strengthen and accelerate its future growth.

General administrative expenses remained almost constant at EUR 2,723 thousand despite the large increase in business activities.

Total assets went up from EUR 36.2 million at the end of 2010 to EUR 39.3 million as of June 30, 2011. The equity ratio remained high at 66% (68% at the end of 2010). Cash and cash equivalents amounted to EUR 16.3 million, which is almost unchanged to the reporting date on December 31, 2010.

Ludwig Lutter, CFO: “At the end of the first half of 2011, Intershop’s net assets and financial position remains solid. In retrospect, both revenues and profit growth show that the Management Board has made the right decisions in a difficult and volatile market environment. Our considerable and sustained investments in research and development as well as our workforce shows that we are executing on our plan to continue to pursue our current growth path.”

Intershop closed important new contracts in the first half of 2011. The Company renewed a framework agreement with Otto Group, one of its largest customers for many years, with a term of three years and a sales volume in the mid seven-digit Euro range. In addition, Intershop received another service contract from its strategic partner GSI with through the end of 2011, which will also generate revenues in the mid seven-digit euro range if all services will be executed. The contract with the leading global supplier of assembly and fastening materials, Adolf Würth GmbH & Co. KG, was expanded considerably and Deutschen Bahn AG’s online travel agency “start.de” became a new customer of SoQuero GmbH, a wholly owned subsidiary of Intershop Communications AG.

Ludwig Lutter, CFO: “Regarding the outlook for fiscal 2011, the Executive Board confirms its forecast for revenue growth between 10% and 20% and an operating result in the same range as in 2010.”

The 6-Month-Report 2011 can be downloaded at http://www.intershop.com/investors-financial-reports.html.

Contact:

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

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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