Jena, 19 November 2018 – The Management Board of INTERSHOP Communications AG (ISIN: DE000A0EPUH1) today reviewed the 2018 forecast and approved the 2019 and 2020 planning figures in the context of the faster-than-expected cloud transformation. Meanwhile, the shifts from non-recurring license revenues to recurring cloud revenues are more pronounced than previously assumed. As planned, this will initially have a negative impact on earnings in the course of the transformation process, before cloud revenues will have reached the critical size in 2019 and rising revenues will be realized again.
In view of the accelerated transformation, management now expects a 10% to 15% decline in revenues as well as negative earnings before interest and taxes (EBIT) in the medium single-digit euro million range in the 2018 fiscal year. Previously, the company had projected slightly lower revenues than in the previous year and negative EBIT in the low single-digit euro million range. For the 2019 fiscal year, the company plans to increase sales again along with a still slightly negative operating result. For 2020 fiscal year, Intershop confirms its medium-term target to generate revenues of EUR 50 million and an EBIT margin of 5%.
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.