Intershop Communications AG | Press Release |

Intershop maintains growth course in first quarter

  • Intershop 7 launch great success
  • Revenues increase by 17% to EUR 13.3 million
  • Positive operating cash flow of EUR 2.3 million

Jena, May 9, 2012 – Intershop Communications AG (ISIN: DE000A0EPUH1), a provider of integrated e-commerce solutions, registered net revenues of EUR 13.3 million in the first quarter of 2012, an increase of 17% on the prior-year period. This result in the generally weaker first quarter business period is a clear vindication of the company’s sound growth course. The increase in revenues was driven by the positive development of business with major strategic customers (platinum accounts) and by the company’s steady performance in acquisitions.

Ludwig Lutter, CFO at Intershop: “The first quarter was dominated by the launch of our new Intershop 7 software and by the associated marketing expenses. Our business performance is well on track. I am particularly pleased with the fact that we were able to maintain the high revenue level from Q4 into Q1 which is historically the slowest quarter of the year. Furthermore our EBIT came out somewhat better than anticipated despite some one-off expenses.”

Growth during the first three months of 2012 was driven by both licensing revenues and revenues from services resulting from the company’s e-commerce business. The largest share once again came from consultancy services, which accounted for EUR 7.8 million, or approximately 59%, of total net revenues. In the first quarter of 2012, this segment saw business grow 21% year-to-year. License revenues climbed 10% to EUR 1.1 million. The company’s Other Business segment which includes Full Service and TheBakery business also saw very substantial growth (+126% to EUR 1.2 million). The Online Marketing segment grew by 17% to EUR 950 thousand.

Gross profit rose by 10% to EUR 4.7 million, and the gross profit margin came to 35%, slightly lower than prior year’s number. EBIT (earnings before interest and tax) were EUR -160 thousand, down as expected on the prior-year figure of EUR 319 thousand. The period’s net loss totaled EUR 150 thousand compared to a profit of EUR 322 thousand in the prior year. The company had planned for a slightly negative quarterly result because the first three months of the year entailed increased marketing expenses for the launch of Intershop’s new software, in addition to some one-time expenses. Nevertheless, the operating expense ratio was just slightly up year-to-year from 36% to 38%.

The balance sheet total on the reporting date March 31, 2012 reveals an exceptionally stable net asset position. At 66%, Intershop’s equity ratio is very high, and the company remains free of liabilities to financial institutions. Cash and cash equivalents rose by 6% to EUR 17.9 million, and Intershop generated operating cash flow of EUR 2.3 million in the first quarter of 2012.

The extension of the framework agreement with Australian telecommunications group Telstra, with a total value of EUR 11 million, and a host of other new projects provide the company with a positive outlook for the coming months.

Jochen Moll, new spokesman for the Executive Board at Intershop, adds: “Our outlook for 2012 remains upbeat. We will continue to expand our operative business with existing customers, and the new e-commerce software we launched in March had a very positive reception. Therefore, we confirm our full year guidance of 10-20 % increase in revenues and earnings and we plan to expand our market share by adding new international customers.“

The 3-Month-Report 2012 can be downloaded at http://www.intershop.com/investors-financial-reports.html.

Contact:

Investor Relations
Heide Rausch
Phone: +49 3641 50-1000
Fax: +49 3641 50-1001
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