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: ISHA) is an independent, internationally leading provider of omnichannel commerce solutions. The latter are available as cloud-based commerce-as-a-service solutions or as licensed models and combine the expertise from over 25 years of software development for online commerce. Upon request, Intershop orchestrates the entire omnichannel commerce process chain – from the design of online channels to the implementation of software to fulfillment. Around the globe more than 300 enterprise customers run Intershop solutions. Customers include large corporations such as HP, BMW, Würth and Deutsche Telekom as well as medium-sized enterprises. Intershop operates in Europe, the USA and the Asia-Pacific region.
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.