Intershop generates a sharp rise in revenues in Q1 2010

  • Net revenues rise 21% to EUR 8.3 million
  • Earnings marked by special factors
  • Substantial improvement in earnings expected over the course of the year

Jena, May 12, 2010 – Intershop Communications AG, a provider of integrated e-commerce solutions, today published its results for the first quarter of 2010.

Net revenues in the first three months of 2010 increased by 21% to EUR 8.3 million. Intershop therefore generated its highest level of quarterly revenues since 2002 with the exception of Q4 2009, which was marked by a major license order. The most important growth driver in the first three months was consulting revenues, particularly from major customers (platinum accounts). These rose by 23% year-on-year to EUR 3.8 million. Maintenance revenues totaled EUR 2.3 million, up 12%. License revenues rose by 7% to EUR 0.8 million.

Gross profit of EUR 3.6 million was generated in the first three months of 2010, following EUR 2.9 million in the prior-year quarter. The gross margin (gross profit/net revenues) improved from 42% in the prior-year period to 44%.

EBITDA rose from EUR 475 thousand in the prior-year quarter to EUR 652 thousand, corresponding to an 8% EBITDA margin. At EUR 91 thousand, the result from operating activities (EBIT) remained on a par with the first quarter of 2009 (EUR 98 thousand). Net profit for the period totaled EUR 77 thousand (previous year: EUR 124 thousand). The main reasons for the slight deterioration were special factors relating to operating expenses.

Operating expenses rose from EUR 2.8 million to EUR 3.5 million; approximately EUR 0.4 million of this amount was attributable to special factors such as costs for the Extraordinary Stockholders’ Meeting and legal and consulting fees.

Cash and cash equivalents rose significantly to EUR 10.6 million as of March 31, 2010, against EUR 6.3 million at year-end 2009. This increase was primarily due to the positive operating cash flow of EUR 4.6 million in the quarter.

Intershop Management Board member Peter Mark Droste: “The sharp rise in revenues is mainly due to the very encouraging development of our major platinum accounts. The quarterly result was in part marked by special factors so we expect a substantial improvement in earnings in the remaining quarters.”

GSI cooperation makes significant contribution to total revenues

The partnership with U.S. company GSI Commerce, announced on April 15, 2010, will contribute revenues of at least EUR 3 million in the current fiscal year.

For the time being, the Management Board continues to expect revenue growth of 7% to 13% in full-year 2010, although revenues from GSI, the new U.S. partner, mean that growth is expected to be at the high end of the range. The Management Board continues to anticipate sustainably positive earnings in 2010.

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About Intershop

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.

Intershop Public Relations

Heide Rausch
Head of Corporate Communication