Press Release | 2010-05-12

Intershop generates a sharp rise in revenues in Q1 2010

• Net revenues rise 21% to EUR 8.3 million
• Earnings marked by special factors
• Substantial improvement in earnings expected over the course of the year

Jena, May 12, 2010 – Intershop Communications AG, a provider of integrated e-commerce solutions, today published its results for the first quarter of 2010.

Net revenues in the first three months of 2010 increased by 21% to EUR 8.3 million. Intershop therefore generated its highest level of quarterly revenues since 2002 with the exception of Q4 2009, which was marked by a major license order. The most important growth driver in the first three months was consulting revenues, particularly from major customers (platinum accounts). These rose by 23% year-on-year to EUR 3.8 million. Maintenance revenues totaled EUR 2.3 million, up 12%. License revenues rose by 7% to EUR 0.8 million.

Gross profit of EUR 3.6 million was generated in the first three months of 2010, following EUR 2.9 million in the prior-year quarter. The gross margin (gross profit/net revenues) improved from 42% in the prior-year period to 44%.

EBITDA rose from EUR 475 thousand in the prior-year quarter to EUR 652 thousand, corresponding to an 8% EBITDA margin. At EUR 91 thousand, the result from operating activities (EBIT) remained on a par with the first quarter of 2009 (EUR 98 thousand). Net profit for the period totaled EUR 77 thousand (previous year: EUR 124 thousand). The main reasons for the slight deterioration were special factors relating to operating expenses.

Operating expenses rose from EUR 2.8 million to EUR 3.5 million; approximately EUR 0.4 million of this amount was attributable to special factors such as costs for the Extraordinary Stockholders’ Meeting and legal and consulting fees.

Cash and cash equivalents rose significantly to EUR 10.6 million as of March 31, 2010, against EUR 6.3 million at year-end 2009. This increase was primarily due to the positive operating cash flow of EUR 4.6 million in the quarter.

Intershop Management Board member Peter Mark Droste: “The sharp rise in revenues is mainly due to the very encouraging development of our major platinum accounts. The quarterly result was in part marked by special factors so we expect a substantial improvement in earnings in the remaining quarters.”

GSI cooperation makes significant contribution to total revenues

The partnership with U.S. company GSI Commerce, announced on April 15, 2010, will contribute revenues of at least EUR 3 million in the current fiscal year.

For the time being, the Management Board continues to expect revenue growth of 7% to 13% in full-year 2010, although revenues from GSI, the new U.S. partner, mean that growth is expected to be at the high end of the range. The Management Board continues to anticipate sustainably positive earnings in 2010.