Jena, 10 October 2016 – The Management Board and the Supervisory Board of Intershop Communications AG which was newly composed as of mid-2016, today resolved the strategic plan “Lighthouse 2020” and specified the company’s strategic targets in order to make Intershop fit for the future. The related restructuring measures and the lacking growth momentum in the year to date have prompted the company to adjust its annual forecast. Intershop now projects revenues of between EUR 34 million and EUR 36 million as well as negative earnings before interest and taxes (EBIT) of between EUR 1 million and 2.5 million including special exceptional expenses of approx. EUR 1 million. The company had previously expected EBIT to be positive and slightly higher than in the previous year.
The restructuring measures primarily serve to increase the company’s efficiency through personnel adjustments in administration, which will result in annual cost savings of approx. EUR 3 million starting 2017. At the same time, the company plans to make investments in the same amount in sales and marketing, where departments are to be centralized and the workforce is to be expanded to support the focus on the wholesale sector. A revenue target of EUR 50 million and an EBIT margin target of 5% have been set for the “Lighthouse 2020”.
The strategic focus of the roadmap adopted by the governing bodies is on the concentration on the B2B market, especially the wholesale sector that is facing massive changes resulting from digitalization and therefore offers above-average potential for growth. Furthermore the company will focus on the consistent expansion of the cloud business building on the Intershop 7.8 Cloud solution, which is to be launched in November.
For further information on the “Lighthouse 2020”, see the interim report on the first nine months of 2016, which will be published on 2 November.
Intershop (founded in Germany 1992; Prime Standard: ISHA) enables the world’s leading manufacturers and wholesalers to digitalize, transform, and boost their businesses. Our e-commerce platform and cloud-based technology give B2B companies the power to establish and expand their digital presence, improve customer experience, and increase online revenue. With 30 years experience and a global presence, we help our 300+ clients turn products into profits, customers into business partners, and transactions into lasting relationships.
Intershop is built to boost your business. Learn more 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.