Intershop Communications AG | Press Release |

Intershop records net revenues at prior year level

  • Net revenue of EUR 38.5 million at the nine-month stage
  • Revenue increase and significantly improved gross margin in Q3
  • Intensification of sales and marketing efforts continues

Jena, Germany, 6 November 2013 – Intershop Communications AG (ISIN: DE000A0EPUH1), a leading provider of integrated e-commerce solutions, generated net revenues of EUR 38.5 million in the first nine months of the year, which was on a par with the previous year. In the third quarter, revenues increased by 8 % to EUR 13.2 million. The gross margin also improved compared to the prior year quarter and reached 34 % (Q3 2012: 31%). At EUR -0.4 million, the operating result remained slightly negative, however (Q3 2012: EUR -0.3 million). Earnings before interest and taxes (EBIT) for the nine-month period totalled EUR -3.3 million, compared to EUR 0.1 million in the same period of the previous year.

“We continued to intensify our sales and marketing activities in the third quarter. Higher revenues and improved earnings are the first results of these measures. However, additional efforts are required to achieve a sustainable turnaround, which is why we project revenues to come out at about the prior year’s level and negative EBIT in the low single digit million Euro range for the year 2013,” said Ludwig Lutter, Chief Financial Officer of Intershop Communications AG.

Accounting for over 50 % of total revenues in the first nine months of the year, the Consulting segment again made the biggest revenue contribution at EUR 19.6 million (previous year: EUR 21.6 million). While licensing revenues improved moderately to EUR 2.6 million in the third quarter, nine-month license revenues were still down by 25 % compared to the previous year. Maintenance revenues declined slightly from EUR 6.8 million in 2012 to EUR 6.5 million. Other revenues, which include the full-service business, showed a clearly positive trend, growing by 79 % to EUR 6.6 million, which also reflects the increased online revenues of the full-service clients. The Online Marketing segment reported a 4 % increase to EUR 3.2 million.

The nine-month gross result dropped by 12 % to EUR 11.9 million, which is equivalent to a gross margin of 31 %. While this is still below the previous year’s 35 %, it represents an improvement on the first six months (29 %). The good performance in the third quarter, in which the gross margin reached 34 %, underlines the positive trend. Operating expenses climbed 13 % to EUR 15.1 million, which is attributable to sales and marketing spending, which rose by 42 % to EUR 8.5 million. By contrast, R&D expenses and administrative expenses were reduced by 29 % and 9 %, respectively. EBIT and the net result amounted to EUR -3.3 million (previous year: EBIT of EUR 0.1 million, net result of EUR 0.0 million). Earnings per share stood at EUR -0.11, compared to EUR 0.00 in the previous year (both diluted and basic).

Intershop still has no financial liabilities. Total assets declined by 11 % to EUR 34.3 million, which is primarily due to a EUR 4.9 million reduction in liquid funds to EUR 9.4 million. At 71 %, the equity ratio remains very high.

Intershop CEO Jochen Moll commented on the recent developments: “In the latest study by US market research institute Forrester Research, our B2B platform was rated as a market-leading technology. This will give our sales and marketing efforts another boost. Moreover, we are generating more and more new business through our global network of partners, which has been extended successfully.” 

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

Contact:
Investor Relations
Heide Rausch
T: +49-3641-50-1000
F: +49-3641-50-1111
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