Intershop Communications AG | Press Release |
Intershop on course in difficult economic environment
- Revenues on a par with previous year at EUR 13.6 million
- Gross margin boosted from 37% to 44%
- Net profit generated for eighth quarter in a row
- Profitability up 155% on the first quarter
Jena, August 12, 2009 – Intershop Communications AG, a provider of integrated e-commerce solutions, today announced its results for the first half of 2009.
The company generated net revenues of EUR 13.6 million in the period under review. At -2%, this is almost on a par with the first half of 2008. Approximately EUR 12.0 million of revenues are attributable to services, up 1% on the prior-year period. Net revenues of EUR 1.6 million were due to licenses. The corresponding figure in the first six months of 2008 was EUR 2.0 million. Gross profit increased by 17% year-on-year to EUR 6.0 million, resulting in a gross margin of 44% (previous year: 37%).
Cost of revenues reduced considerably
Intershop achieved a net profit of EUR 440 thousand for the first half of 2009 despite the declining macroeconomic trend. This was due to a significant 13% reduction in the cost of revenues to EUR 7.6 million. Compared with the first quarter of 2009, profitability in the period from April to June 2009 rose by 155% from EUR 124 thousand to EUR 316 thousand. Operating earnings before interest, tax, depreciation, and amortization (EBITDA) for the period under review amounted to EUR 1.1 million, up 3% on the prior-year period. The EBITDA margin was stable compared with the first half of 2008, at 8%. The “operating expenses, operating income” item rose by 33% to EUR 5.7 million due primarily to higher research and development expenses (EUR 1.8 million) and a EUR 268 thousand valuation allowance on customer receivables.
Cash and cash equivalents totaled EUR 6.2 million as of the end of June 2009, compared with EUR 8.1 million at the end of 2008. This was due to a rise in investing activities, an increase in receivables, and the valuation allowances recognized as a precautionary measure. Intershop's equity increased from EUR 16.3 million to EUR 16.9 million, corresponding to an equity ratio of 67%.
Intershop Management Board member Peter Mark Droste: “Our performance in the first half of the year clearly shows that our licensing and service business is stable despite the economic crisis. We have closed a further two quarters in profit in an extremely challenging environment. We will benefit from the increasing trend towards online trading with our powerful Enfinity Suite 6 software and thanks to our unique expertise as an e-commerce pioneer. The new customers we have acquired in the first half of the year show that we are on the right track. As a result, we are reiterating our forecast of 7% to 9% growth in net revenues to more than EUR 30 million for the year as a whole.”
Major new customers and orders
Intershop announced the acquisition of its first key account in the full-service e-commerce segment in March. Together with partners, it redesigned the online shop and all related processes for the international fashion company Mexx. The total order volume for Intershop over five years will be up to EUR 6.0 million.
This week the company also reported that it will be working in future for the Munich trade fair company Messe München International (MMI) to establish a uniform Internet platform for all of MMI’s specialist trade fairs. In future, MMI will use Enfinity Suite 6 to market its capacities, allowing its customers to book and configure trade fair stands online.
Other new customers in the first half of the year included major tobacco corporation Imperial Tobacco, Belgian publishing group Lannoo, and BabyOne, Germany’s largest franchise chain for baby and toddler products.
Intershop won its largest-ever service contract at the end of June. The client is the Australian telecommunications group Telstra. The order is worth the equivalent of approximately EUR 13 million over a three-year period and comprises a number of services such as operational support, testing, and support.
Intershop Management Board member Henry Göttler: “The order trend in the first half of the year also underlines the success of our ongoing internationalization process. The increase in our order intake stems not least from new international customers. This can already be seen in the pick-up in the licensing business in the second quarter.”
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.