Jena, 26 July 2018 – According to preliminary figures, INTERSHOP Communications AG (ISIN: DE000A0EPUH1) generated revenues of approx. EUR 16 million (previous year: EUR 18 million) and EBIT of EUR -2.0 million (previous year: EUR 0.2 million) in the first half of 2018. The decline in revenues and earnings is essentially attributable to the shift in revenues resulting from the strategic transition from the license business to the cloud business. While this transformation results in temporary fluctuations in revenues and earnings, it will ultimately lead to greater stability in the following years.
Incoming orders for cloud-related products and services picked up noticeably to EUR 2.2 million in the first half of 2018 (previous year: EUR 0.7 million). Revenues in the Cloud and Subscription segment rose by 14% to EUR 2.5 million.
After the Management Board and Supervisory Board today reaffirmed the consistent transformation towards the cloud, Intershop has adjusted its forecast for the fiscal year 2018 accordingly. Because of the accelerated decline in licensing revenues, management now projects slightly lower revenues than in the previous year as well as negative earnings before interest and taxes (EBIT) in the low single-digit euro million range. Management had previously projected slightly higher revenues and slightly positive EBIT. Nonetheless, management remains firmly focused on the medium-term target of EUR 50 million in revenues and an EBIT margin of 5% for the year 2020.
The final figures and the report on the first six months of 2018 will be published as planned on 1 August 2018.
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.