Intershop Communications AG | Press Release |
Intershop publishes figures for first three months of 2015
- Positive trend in product revenues (licenses and maintenance) continues
- Turnaround on EBITDA basis: EUR +0.7 million (PY: EUR -0.7 million)
- EBIT improves but stays negative: EUR -0.4 million (PY: EUR -1.7 million)
- Liquidity increase thanks to positive operating cash flow
Jena, 6 May 2015 – Intershop Communications AG (ISIN: DE000A0EPUH1), a leading independent provider of innovative solutions for omni-channel commerce, made great progress in the first quarter of 2015 in its transformation from a service company to an integrated omni-channel commerce solution provider. In spite of declining revenues, the performance of all business segments exceeded management’s expectations.
In total the Intershop Group generated revenues of EUR 10.0 million in the first three months of 2015, which represents a decline of 17% on the same period of the previous year. The drop in revenues is mainly attributable to the sale of the company’s online marketing subsidiary, SoQuero in 2014, as well as to the fact that revenues with two long-standing key accounts declined. Adjusted for both effects, revenues increased by 6% due to a sharp rise in both product revenues and service revenues with new and existing customers.
Based on the change of strategy, the positive trend in product revenues (licenses and maintenance) continued in the form of an 11% increase to EUR 3.3 million. Licensing revenues accounted for approx. EUR 1.3 million of this amount, up 18% on the prior year quarter. Maintenance revenues rose by 6% to EUR 2.0 million. Revenues in the services segment declined by 26% to EUR 6.7 million in the first three months of 2015, of which EUR 5.1 million related to consulting and training. These figures already reflect the reduced revenues from two key accounts mentioned above. Adjusted for these revenues, consulting revenues climbed 12%. At EUR 1.6 million, revenues in the full service segment were slightly lower than in the prior year period.
In the context of the consistent adjustment of the cost structure, Intershop’s earnings situation improved notably in the first quarter of 2015. The reduction of the cost of revenues by 25% to EUR 6.1 million outpaced the decline in total revenues. As a result, the gross margin rose sharply from 32% to 39%. Operating expenses dropped by 24% to EUR 4.3 million. At EUR 0.7 million, earnings before interest, taxes, depreciation and amortisation (EBITDA) were positive (previous year: EUR -0.7 million). Earnings before interest and taxes (EBIT) also improved significantly from EUR -1.7 million to EUR -0.4 million. Intershop’s net result for the first quarter of 2015 totalled EUR -0.5 million (previous year: EUR -1.8 million). Earnings per share stood at EUR -0.02, compared to EUR -0.06 in the previous year.
The liquidity situation has also improved notably since the end of 2014. Liquid funds climbed from EUR 6.4 million to EUR 7.3 million. Operating cash flow increased from EUR 0.7 million in the prior year period to EUR 1.5 million.
Jochen Moll, Board Spokesman of Intershop Communications AG said: “A large number of new customers and the sharp rise in both product revenues and adjusted service revenues in the typically weaker first quarter show that Intershop set the right course last year to achieve growing revenues in all business segments again in the medium term. We also improved our earnings and have our costs firmly under control. In the medium run, we will further reduce our dependence on individual large customers and return to profitable growth on the basis of a strong increase in the number of new customers.”
The positive business trend will additionally be supported by the commitment for a EUR 6 million financing package received a few days ago. The package comprises a loan from Sparkasse Jena-Saale-Holzland which is secured by a guaranty from the Federal State of Thuringia.
Ludwig Lutter, Chief Financial Officer of Intershop Communications AG said: “The financing package will substantially increase our financial scope in the medium term and will allow us to push ahead our ambitious product innovations in the B2B segment and in the field of SaaS solutions.”
The report on the first three months of 2015 is available for downloading at http://www.intershop.com/investors-financial-reports.
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.