Intershop publishes figures for Q1 2013

  • Net revenues of EUR 12.2 million down 8% on previous year
  • Increased sales and marketing investments weighing on bottom line
  • Forecast for 2013 confirmed

Jena, Germany, May 8, 2013 – Intershop Communications AG (ISIN: DE000A0EPUH1), a leading provider of integrated e-commerce solutions, generated net revenues of EUR 12.2 million in the first quarter of 2013. This represents an 8% decline compared to the prior year period, in which the company posted extraordinarily high consulting revenues. The decline in the traditionally weaker first quarter is also attributable to reduced licensing revenues, which amounted to EUR 0.7 million (2012: EUR 1.1 million).

“The licensing business is feeling fiercer competition, primarily for larger e-commerce contracts, and the extended decision-making process of potential clients. The growing trend towards software subscriptions (SaaS revenue model) instead of license purchases also leads to former “standard license revenues” being spread over the term of the subscription period, thereby shifting the recognition of revenues into the future. We are confident, however, that our investments in sales and marketing will bear fruits in the upcoming quarters and will drive new customer business significantly. We, therefore, confirm our forecast of single-digit revenue growth and an almost break-even result for 2013,” says Ludwig Lutter, Chief Financial Officer of Intershop Communications AG.

At EUR 6.8 million or approx. 56%, the Consulting segment again made the biggest contribution to net revenues in the first quarter of 2013. Maintenance revenues amounted to EUR 2.0 million, compared to EUR 2.2 million in the prior year period. Other revenues, which also include Full-Service revenues, increased by an impressive 35% to EUR 1.6 million. The Online Marketing segment also reported higher net revenues, which picked up by 9% to EUR 1.0 million.

Gross profit for the first three months of 2013 dropped by 27% to EUR 3.4 million, which represents a gross margin of 28%. The reduced gross profit was attributable to lower licensing revenues, higher depreciation, declining consulting and support services. Operating expenses rose by 6% to EUR 5.2 million, which was mainly due to the 43% increase in sales and marketing expenses. EBIT and the net result amounted to EUR -1.7 million each (2012: EBIT and net result of EUR -0.2 million each). Earnings per share stood at EUR -0.06 compared to EUR 0.00 in the previous year (diluted and basic each).

Intershop’s consolidated balance sheet for the period ended 31 March 2013 again showed no financial liabilities as well as a high equity ratio of 67%, which exceeds the average equity ratio of the sector as a whole. Liquid funds were down by EUR 1.6 million on year-end 2012 to EUR 12.7 million on 31 March 2013.

Intershop CEO Jochen Moll stated: “As announced, we strongly expanded our international partner network in the first quarter, during which we were able to sign up Shinetech Software, a leading outsourcing provider in the Chinese e-commerce market, among other new partners. The cooperation strategy will expand our reach to win new clients. The latest example is our new project with Majestic Wine, the UK’s largest wine retailer, which we have won together with our British partner, Javelin Group. Even if we remained slightly below our ambitious target in the first quarter, the significantly higher number of new clients shows that we are on the right track.”

The interim report on the first three months of 2013 is available for download at investors-financial-reports.


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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