Intershop Communications AG | Press Release |

Intershop publishes figures for H1 2013

  • Net revenues down 4% on previous year to EUR 25.4 million
  • Negative sales and earnings trend slowed down in Q2
  • Guidance for the full year 2013 confirmed

Jena, Germany, August 7, 2013 – Intershop Communications AG (ISIN: DE000A0EPUH1), a leading provider of integrated e-commerce solutions, generated net revenues of EUR 25.4 million in the first six months of 2013, which represents a 4% decline on the prior year period. At EUR 13.2 million, second-quarter revenues were slightly higher than the previous year’s EUR 13.1 million and clearly exceeded the first-quarter revenues of EUR 12.2 million. The decline in the first-half of the year is primarily attributable to lower license sales, which dropped from EUR 2.8 million to EUR 1.7 million. This reflects the increased competition for major e-commerce customers and the trend to software leasing (SaaS model). Included in “Other revenues”, the full-service business, where Intershop and its partners manage all e-commerce processes, is showing an increasingly positive trend, with revenues rising by 68% to EUR 4.1 million in the first six months of the year.

“While we were able to slow down the negative sales and earnings trend in the second quarter, the result remains negative due to the weak first quarter and further spending on sales and marketing. The measures taken and the investments made should show first favorable effects in the second half of the year, which is why we continue to expect a single-digit revenue growth and an almost break-even operating result for 2013,” said Ludwig Lutter, Chief Financial Officer of Intershop Communications AG.

Accounting for just under 52% of total net revenues, consulting remains the most important business segment with a sales volume of EUR 13.2 million in the first six months (previous year: EUR 14.7 million). Maintenance business declined by 6% to EUR 4.2 million. Revenues from online marketing services amounted to EUR 2.1 million, up 4% on the previous year.

Gross profit for the first six months of 2013 declined by 24% to EUR 7.3 million, which is equivalent to a gross margin of 29%. This is below the prior year level of 36% but slightly above the first-quarter margin of 28%. The lower gross profit is due to reduced license revenues, higher amortisation and a decline in maintenance and consulting services. Operating expenses increased by 10% to EUR 10.2 million, of which approx. EUR 5.7 million (+39%) was spent on sales and marketing. Both administrative expenses (-18 %) and R&D expenditures (-22%) remained clearly below the prior year level. EBIT and the net result amounted to EUR -2.9 million each (previous year: EBIT of EUR 0.3 million, net result of EUR 0.2 million). Earnings per share stood at EUR -0.10, compared to EUR 0.01 (diluted and basic) in the previous year.

The net assets position of Intershop is solid. As of 30 June 2013, total assets amounted to EUR 35.8 million (-7%) and the equity ratio stood at 69%. The company again had no financial liabilities. Liquid funds amounted to EUR 10.8 million at the half-year stage, down EUR 3.5 million on year-end 2012.

Intershop CEO Jochen Moll: “We not only won many new customers in the first half of 2013 but also expanded our international partner network significantly. With eight new business and implementation partners signed up in the past six months alone, we have clearly extended our reach to bring our Intershop 7 to market. Our well-filled project pipeline will now have to be converted into business successively.”

Dr. Jochen Wiechen, who joined the Executive Board on 1 August 2013, adds: "I am very pleased to be able to participate in the further development and positioning of the proven, high-performance Intershop platform. I am convinced that we will be able to continue the Intershop success story.”

The report on the first six months of 2013 is available for download at http://www.intershop.com/investors-financial-reports.

 

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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