Intershop reports positive performance for Q1 2017

• Strategy program “Lighthouse 2020” taking effect
• Total revenues up 26% to EUR 9.1 million (previous year: EUR 7.3 million)
• Positive EBIT of EUR 0.2 million (previous year: EUR -1.4 million)
• Strong increase in cash by EUR 2.2 million
• Intershop technology achieves top ratings by renowned industry analyst Forrester Research

Jena, Germany, 3 May 2017 – Intershop Communications AG (ISIN: DE000A0EPUH1), a leading independent provider of innovative solutions for omni-channel commerce, recorded a strong 26% increase in revenues to EUR 9.1 million in the first quarter of 2017. Revenues of EUR 7.3 million had been generated in the weak prior year quarter. The good performance at the beginning of 2017 is attributable to a positive business trend in all of the Group’s revenue areas.

The strategically important product revenues rose by 49% from EUR 2.7 million to EUR 4.1 million, while service revenues increased by 12% to EUR 5.1 million. Product revenues accounted for 45% of total revenues (previous year: 38%).

While the gross margin climbed from 44% to 49% in the reporting period, operating expenses declined by 7% from EUR 4.6 million to EUR 4.3 million. As announced, the financial scope resulting from the savings was used to develop and implement new market-oriented sales and marketing measures to intensify the cloud and industry focus.

At EUR 0.2 million, Intershop generated moderately positive earnings before interest and taxes (EBIT) in the first quarter of 2017 (previous year: EUR -1.4 million), which is equivalent to an EBIT margin of 2% (previous year: -19%). Operating earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to EUR 0.8 million, compared to EUR -0.8 million in the first quarter of 2016. The result for the period came in at EUR 0.1 million (previous year: EUR -1.5 million), resulting in earnings per share of EUR 0.00 (previous year: EUR -0.05).

At EUR 2.8 million, operating cash flow was clearly positive in the reporting period (previous year: EUR -0.9 million). Cash and cash equivalents rose from EUR 10.9 million at the end of 2016 to EUR 13.1 million as of 31 March 2017. This means that the company has a good financial basis to push ahead with the implementation of the “Lighthouse 2020” roadmap and to remain flexible in its day-to-day business. The Intershop Group’s equity ratio stayed at a comfortable level of 58% (31 December 2016: 59%).

Says Dr. Jochen Wiechen, CEO of Intershop Communications AG: “During the first three months we have laid a solid foundation to achieve the objectives we have set ourselves for 2017 as the year progresses. Moreover, the results show that the measures implemented in the context of the “Lighthouse 2020” strategy program are successively taking effect. We must now continue these positive developments. We are additionally benefiting from the latest analyses conducted by Forrester Research on the market for e-commerce platforms. We were again able to position ourselves as a leading supplier in both the B2B and the B2C segment. This success will help us very much in targeting new customers. Moreover, the analyst assessments will strengthen the relationships with our customers and increase our partners’ confidence in our solutions, as they objectively document our technological leadership.”

Intershop has confirmed its forecast for the full year 2017 and continues to project moderately higher revenues and balanced earnings before interest and taxes (EBIT).

The interim report on the first three months of 2017 is available for download at http://www.intershop.com/investors-financial-reports.