Jena, Germany, August 7, 2008 – Intershop Communications AG (Prime Standard: ISH2) today announced its results for the second quarter and the first half of 2008.
Intershop ended the past three months in profit for the fourth consecutive time. Earnings before tax for the first half of 2008 amounted to EUR 0.8 million. Half of this figure was generated in Q2, despite a one-time charge of EUR 0.25 million in this quarter. This means the Company has recorded positive net earnings from operating activities (before restructuring expenses in 2007) for the fifth consecutive quarter, and positive net earnings overall for the fourth consecutive quarter.
Intershop's gross revenues rose by 11% to EUR 16.1 million in the first six months of fiscal year 2008, up from EUR 14.6 million in the prior-year period; total net revenues were up 9% year-on-year, from EUR 12.7 million to EUR 13.8 million. Net revenues from services, maintenance, and other included in this figure rose by 21%, from EUR 9.8 million to EUR 11.9 million. In the second quarter of 2008, this item increased by 10% compared with the prior-year period, from EUR 5.5 million to EUR 6.0 million. Total net revenues for the quarter amounted to EUR 6.9 million, compared with EUR 7.5 million in the prior-year quarter (however, it should be noted that the figure for the corresponding prior-year quarter includes license revenues of EUR 1.4 million from a major order).
Intershop was able to sustain its positive earnings trend thanks to its results for the second quarter: the result from operating activities (EBIT) amounted to EUR 0.4 million in the second quarter of 2008. Overall, EBIT of EUR 0.8 million was generated in the first half of 2008. EBIT in both the comparable prior-year quarter and the first six months of 2007 was clearly negative, at EUR -1.6 million and EUR -3.0 million respectively. The EBIT margin improved as against the first half of 2007 from -24% to +6%.
Earnings after tax totaled EUR 0.3 million in Q2 2008, while Intershop's earnings per share were EUR 0.01. Overall, earnings after tax for the first six months amounted to EUR 0.6 million and earnings per share were EUR 0.02. In the prior-year quarter and the first half of 2007, losses after tax of EUR 1.7 million and EUR 3.1 million respectively were recorded, resulting in losses per share of EUR 0.07 and EUR 0.12.
Balance sheet and cash flow
Intershop's equity increased from EUR 12.4 million as of December 31, 2007 to EUR 13.3 million as of June 30, 2008. The equity ratio was unchanged at 53%.
Unrestricted cash increased from EUR 5.9 million as of December 31, 2007 and EUR 2.7 million as of June 30, 2007 to EUR 7.4 million as of June 30, 2008. Total liquidity (cash and restricted cash) amounted to EUR 9.0 million as of June 30, 2008.
The results for the first six months of 2008 confirm the forecast that Intershop will generate a significant profit for 2008 as a whole.
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.