Jena, Germany – October 26, 2006 - Intershop Communications AG (Prime Standard: ISH2) today announced financial results for the third quarter of 2006, ended September 30, 2006.
In the third quarter of 2006, total revenues were EUR 4.9 million compared with EUR 4.3 million in Q2 2006 and EUR 3.9 million in Q3 2005. License revenues amounted to EUR 0.6 million in the third quarter of 2006, as against EUR 1.0 million in Q2 2006 and EUR 0.5 million in Q3 2005. Service revenues were EUR 4.3 million in the third quarter of 2006, compared with EUR 3.2 million in Q2 2006 and EUR 3.4 million in Q3 2005. Service revenues in the third quarter of 2006 include online marketing revenues amounting to EUR 0.7 million.
Total operating costs (cost of revenues plus operating expenses) including online marketing costs amounted to EUR 6.4 million in the third quarter of 2006, compared with EUR 5.4 million in the previous quarter and EUR 5.1 million in the third quarter of 2005.
Intershop reported Euro 1.6 million in net loss in the third quarter of 2006 or Euro 0.09 per share, compared to a net loss of Euro 1.3 million or a net loss of Euro 0.07 per share in the second quarter of 2006. In comparison, Intershop’s net loss in the third quarter of 2005 was Euro 1.5 million or a net loss of Euro 0.08 per share.
Total cash, including cash and cash equivalents, marketable securities, and restricted cash fell from Euro 13.5 million as of December 31, 2005 to Euro 12.8 million as of September 30, 2006. The amount of unrestricted cash included in this total amounting to EUR 5.2 million as of September 30, 2006, compared to Euro 7.3 million as of December 31, 2005. EUR 0.8 million in cash and cash equivalents was utilized in Q3 2006 to acquire SoQuero GmbH’s online marketing activities.
Operating Highlights for the Third Quarter of 2006
Intershop Communications AG (founded in Germany 1992; Prime Standard: ISH2) is the leading independent provider of omni-channel commerce solutions. Intershop offers high-performance packaged software for internet sales, complemented by all necessary services. Intershop also acts as a business process outsourcing provider, covering all aspects of online retailing up to fulfillment. Around the globe more than 300 enterprise customers, including HP, BMW, Würth, and Deutsche Telekom run Intershop solutions. Intershop is headquartered in Jena, Germany, and has offices in the United States, Europe, Australia, and China. More information about Intershop can be found online 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.