Intershop Communications AG | Press Release |

Intershop posts sales growth again in the first nine months of 2012

  • Net revenues increase by 9% to EUR 38.7 million
  • Positive result from operating activities (EBIT) of EUR 53 thousand
  • Strong operating cash flow of EUR 2.1 million

Jena, 7 November 2012 − Intershop Communications AG (ISIN: DE000A0EPUH1), supplier of integrated e-commerce solutions, generated EUR 38.7 million in net revenues in the first nine months of 2012, corresponding to a 9% rise year-on-year. By doing so, the company continued its steady growth trend. Net revenues in the third quarter fell slightly short of expectations, coming in at EUR 12.2 million (prior year: EUR 12.5 million).

All business areas, with the exception of the Maintenance business, achieved significant growth in the first nine months of 2012. Both new projects and business with existing major customers (Platinum Accounts) contributed to the increase in revenue. In the important Licensing business, Intershop increased sales by 11% year-on-year to EUR 3.5 million. The Consulting/Training segment recorded an increase of 8% to EUR 21.6 million. The areas Online Marketing and Other revenues grew strongly by 23% and 55% respectively year-on-year. Intershop generated Online Marketing revenues of EUR 3.1 million. Other revenues, consisting of full-service business and revenues from the transaction platform TheBakery, came in at EUR 3.7 million. Maintenance revenues were the only figure to decline, falling by 9% to EUR 6.8 million.

Jochen Moll, Spokesman of the Board of Management of Intershop Communications AG: “Revenue development in the past nine months has been satisfactory. Right now, the initial implementation of our new cross-channel software Intershop 7 is under way. In marketing, we are increasing our focus on the international network of partners that we have significantly expanded in the past few months.”

Gross profit decreased slightly by 5% to EUR 13.5 million, corresponding to a gross margin of 35%. The main reason for the lower gross profit was the higher revenues in the lower-margin Consulting business during the reporting period. Earnings before interest and taxes (EBIT) decreased from EUR 1.5 million in the prior year to EUR 53 thousand. Net profit for the period came to EUR 22 thousand (earnings per share: EUR 0.00) compared to EUR 1.9 million (earnings per share: EUR 0.06) in the first nine months of the prior year.

Revenues were down year-on-year on account of delays in major projects, a steep rise in marketing costs for the launch of the new Intershop software as well as some non-recurring effects in administrative costs. The operating costs ratio nevertheless remained nearly constant at 37%, following 38% in the prior-year period.

Total assets rose slightly by 2% to EUR 40.2 million on 30 September 2012, the interim reporting date. The equity ratio, which was already very comfortable, increased from 68.5% at the end of 2011 to 70.3%. The company remains free of financial debt. Unrestricted cash fell by 8% to EUR 15.5 million. Intershop generated positive operating cash flow of EUR 2.1 million in the first nine months.

Intershop acquired several new customers and projects in the first nine months, including a leading European fashion retailer. Further prestigious new customers are Pottermore, which markets Harry Potter, France’s Raja Group and Styrolution Group.

Ludwig Lutter, CFO of Intershop: “At the moment e-commerce is one of the few growth markets. Therefore, the importance of this segment becomes ever more important to our customers. As a result, we see existing and potential customers carefully analysing and adjusting their e-commerce strategies, which has lead to some delays in both current and new projects.”

The company is now forecasting an increase in net revenues of between 5 and 10% as well as a balanced result from operating activities.

The “Group Management Report for the Nine Months Ended 30 September 2012” can be downloaded at http://www.intershop.com/investors-financial-reports.

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