Intershop Communications AG | Press Release |
Intershop powers ahead – strong third quarter
- EBIT margin of 9% in third quarter
- Unrestricted cash and equity ratio rise further
Jena, Germany, November 6, 2008 – Intershop Communications AG (Prime Standard: ISH2) today announced its results for the third quarter and the first nine months of fiscal year 2008.
"After generating a profit in the first two quarters, we have stepped up the pace again in the third quarter and increased our EBIT margin to 9%. This is the highest margin that Intershop has ever achieved. The result from operating activities in the first nine months of EUR 1.5 million underscores our forecast that we will close fiscal year 2008 in clearly positive territory," said Intershop's CEO Henry Göttler.
Intershop achieved gross revenues of EUR 24.1 million in the first nine months of 2008, representing an increase of 7% (previous year: EUR 22.5 million). Total net revenues rose by 5%, from EUR 19.7 million to EUR 20.8 million. Net revenues from services, maintenance, and other included in this figure increased by 14%, from EUR 15.6 million to EUR 17.8 million. Total gross revenues for the quarter rose from EUR 7.9 million in the third quarter of 2007 to EUR 8.0 million in the third quarter of 2008.
Intershop generated positive nine-month results for the first time. The Company's result from operating activities (EBIT) from January to September amounted to EUR 1.5 million, while the EBIT margin reached 7%. In the prior-year period EBIT amounted to EUR -2.4 million and the EBIT margin was -12%. Profit after tax totaled EUR 1.1 million after the first nine months of 2008, while earnings per share were EUR 0.04. In the comparative period of the previous year the loss after tax was EUR 2.5 million, while the loss per share was EUR 0.10.
Seen at a quarterly level, Intershop has now closed five quarters in a row with a profit. At EUR 0.6 million, EBIT was the same in the third quarter of 2008 as it was in the third quarter of 2007. The EBIT margin improved from 8% to 9%. The earnings per share were EUR 0.02 in both quarters.
Balance sheet and cash flow
Intershop's equity increased from EUR 12.4 million as of December 31, 2007 to EUR 13.9 million as of September 30, 2008. The equity ratio rose from 53% to 56%. Total assets amounted to EUR 24.7 million (previous year: EUR 23.2 million).
The Company's liquidity also reflects its positive earnings trend. Unrestricted cash increased from EUR 5.9 million as of December 31, 2007, to EUR 7.9 million as of September 30, 2008.
Client confidence in Intershop's software and services was demonstrated in the third quarter of 2008 by a number of large long-term contracts, among other things. Deutsche Messe AG, the German exhibition corporation best-known and internationally very successful, will completely redesign and significantly expand the functionality of its Internet presence using Intershop's Enfinity Suite 6 software. At the beginning of July, Intershop won its largest-ever online marketing order from a German-based international specialized shipper, which is worth EUR 2.5 million and has a term of 36 months. Satyam Computer Services Ltd., a leading global technology and consulting firm, placed an order for Intershop services in excess of EUR 0.7 million at the end of September.
In the past quarter, Intershop acquired a number of new clients from various regions for its software and services, including European rail travel portal Eurail.
Intershop's online marketing business area presented an expanded product portfolio and increased its cooperation with partners in the third quarter. It continued its above-average sales growth from the previous year. For example, Intershop will be handling the entire search engine optimization for 4CARE AG (formerly Lenscare AG), Europe's leading specialized shipper for contact lenses and contact lens care. 4CARE is already running Intershop's Enfinity Suite 6 software.
Intershop presented an innovative full-service product range in September at the OMD trade fair in Düsseldorf together with eCircle AG, one of the largest online marketing and technology suppliers for digital direct marketing in Europe, and WebTrends, the global market leader for web analysis and marketing solutions. The offering comprises the standard integration of e-commerce-, e-mail marketing, and web analysis software.
Intershop, MAC IT-Solutions, Computop, KarstadtQuelle Information Services, and Primondo Operations agreed a strategic partnership in September. Together, they offer end-to-end solutions for electronic mail-order supplies. Payment Network AG and Intershop have also agreed a strategic partnership in which they will integrate the sofortüberweisung.de payment service into Intershop's Enfinity Suite 6 software using an interface.
hagebau.de was chosen as the Online Shop of the Year 2008 in the business-to-consumer category at the Deutscher Versandhandelskongress (German Mail-Order Conference). Following otto.de, lenscare.de, and sqoops.de, this represents the fourth time since 2005 that an online shop powered by Intershop software has been recognized at this event.
Intershop completed the key development work on its latest software version in the third quarter. The Company plans to launch Enfinity Suite 6.3 with its large number of functional and technical improvements at the end of 2008/beginning of 2009.
As of September 30, 2008, Intershop had 255 full-time employees worldwide compared with 225 at the same reporting date in 2007. This increase is due to the planned expansion of the Company's technical areas.
After its consistently positive results in the first nine months, Intershop continues to expect to close fiscal year 2008 with a significant profit.
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.