Intershop Communications AG | Press Release |

Intershop significantly increases revenues and EBIT in Q1 2011

  • Net revenues rise by 43% to EUR 11.4 million
  • EBIT increase by 251% to EUR 319 thousand
  • Important agreements concluded in the first quarter

Jena, May 11, 2011 – Intershop Communications AG (ISIN: DE000A0EPUH1), a provider of integrated e-commerce solutions, today published its results for the first quarter of 2011.

Net revenues in the first three months increased considerably from EUR 8.0 million to EUR 11.4 million, rising by 43% year-on-year. Positive developments in the business with platinum accounts were the main driver for the sharp growth in revenues. All business units contributed to the rise in revenues, with the consultancy business recording the strongest growth of 72% and achieving total revenues of EUR 6.5 million. License revenues grew by 22% to EUR 1.0 million, maintenance revenues rose by 8% to EUR 2.5 million. Online marketing recorded an increase in revenues by 47%, totaling EUR 0.8 million.

Gross profit increased by 33% to EUR 4.3 million, corresponding to a gross margin of just under 38% (previous year: 40%). Earnings before interest, taxes, depreciation and amortization (EBITDA) were EUR 619 thousand (previous year: EUR 652 thousand); results from operating activities (EBIT) rose steeply by 251% to EUR 319 thousand. Net profit for the period increased from EUR 77 thousand to EUR 322 thousand. Due to the higher number of shares, earnings per share (basic and diluted) remained stable at EUR 0.01.

Investments in the future influence expenses

Operating expenses totaled EUR 3.8 million in the first quarter, rising 33% year-on-year, mainly as a result of the Company’s investments in innovation. In the past twelve months, the number of employees at Intershop increased from 82 to 401 as of March 31, 2011. Research and development expenses went up by 7% to EUR 961 thousand as a result from rising personnel expenses. Sales and marketing expenses amounted to EUR 1.5 million, a considerable increase by 63%. This development was mainly due to rising expenses for sales partners and the stronger focus on market observation.

Total assets of Intershop as of March 31, 2011, totaled EUR 39 million, corresponding to an 8% increase compared to the end of the 2010. The equity ratio remained at a high level, standing at 64% (after 68% at the end of 2010). Cash and cash equivalents decreased slightly from EUR 16.4 million to EUR 14.8 million as of the reporting date of the interim financial statements. Overall, Intershop had a very strong assets and financial position at the end of the first quarter.

New contracts and customers secure future growth

Intershop concluded important new contracts in the first quarter of 2011. For example, Intershop renewed a framework agreement with Otto Group, which has been one of the company’s key accounts for years. The agreement has a term of three years and covers net sales in the mid seven-digit Euro range. Intershop was also awarded a new service contract until the end of 2011 from the strategic partner GSI. If all services are used, this contract will also generate sales in the mid seven-digit Euro range. Winning over CANCOM group as a new platinum account marked another success for Intershop.

For the entire year 2011, the Management Board confirmed its forecast for revenues growth of 10% to 20% and a positive operating result at the previous year’s level.

The Three Months Report 2011 can be downloaded at http://www.intershop.com/investors-financial-reports.html.

Contact:

Investor relations
Stephan Leschke
Phone: +49-3641-50-1371
Fax: +49-3641-50-1309
ir@intershop.de

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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