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Jena, Germany – July 27, 2006 - Intershop Communications AG (Prime
Standard: ISH2) today announced financial results for the second
quarter of 2006, ended June 30, 2006.
Second quarter 2006 revenue totaled Euro 4.3 million, compared with Euro 5.1 million in the first quarter of 2006 and Euro 4.2 million in the second quarter of 2005. License revenue totaled Euro 1.0 million in the second quarter of 2006 as against the first quarter of 2006 to Euro 1.8 million, compared with Euro 0.4 million in the second quarter of 2005. Total operating costs (cost of revenues plus operating expenses) were reduced by EUR 1.0 million from EUR 6.4 million in the first quarter of 2006 to EUR 5.4 million in the second quarter of 2006. Total operating costs in the second quarter of 2005 were EUR 5.2 million.
Intershop reported Euro 1.3 million in net loss in the second quarter of 2006 or Euro 0.07 per share, compared to a net loss of Euro 1.5 million or a net loss of Euro 0.08 per share in the first quarter of 2006. In comparison, Intershop’s net loss in the second quarter of 2005 was Euro 1.2 million or a net loss of Euro 0.07 per share.
Total cash, including cash and cash equivalents, marketable securities, and restricted cash climbed from Euro 13.5 million as of December 31, 2005 to Euro 15.4 million as of June 30, 2006. The amount of unrestricted cash included in this total increased to EUR 7.9 million as of June 30, 2006 from EUR 7.3 million as of December 31, 2005.
Operating Highlights for the Second Quarter of 2006
Intershop again expects to record a net profit for fiscal year 2006.
Intershop Communications AG (founded in Germany 1992; Prime Standard: ISH2) 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.