Intershop Communications AG | Press Release |
Intershop publishes figures for the first nine months of 2014
- Net revenues of EUR 34.9 million down 10% on the previous year
- Licensing revenues +42%; gross margin improved further to 34%
- Negative earnings trend slowed down in Q3
- Guidance confirmed
Jena, 5 November 2014 – Intershop Communications AG (ISIN: DE000A0EPUH1), a leading independent provider of innovative solutions for omni-channel commerce, generated net revenues of EUR 34.9 million in the first nine months of 2014, down 10% on the previous year. Licensing revenues increased by 42% in the reporting period to EUR 3.7 million. Compared to the third quarter of the previous year, licensing revenues were even up by 61%, which shows that the increased sales efforts are taking effect. Service, maintenance and other revenues for the first nine months of 2014 declined by 13% to EUR 31.1 million due to lower revenues with some major customers.
Ludwig Lutter, Chief Financial Officer of Intershop Communications AG said: “We are advancing on our way to a product-focused company. Our license revenues are increasing. Over the last three months we have achieved higher efficiency in all areas and decreased structure costs. Loss making or not strategy fitting subsidiaries and business unit were sold. We will continue to invest in marketing and sales in order to expand our product business. We will lay the financial basis for these investments in the upcoming months.”
As the gross margin increased to 34% and costs were cut, earnings improved in the third quarter compared to the first six months of the year. In addition, Intershop generated a profit from sale of the online marketing subsidiary SoQuero. Third-quarter earnings before interest, taxes, depreciation and amortisation (EBITDA) amounted to EUR 0.5 million. Due to the weaker performance in the first half of the year, nine-month EBITDA came in at EUR -1.7 million. EBIT amounted to EUR -4.8 million during the same period. The net result for the period stood at EUR -5.1 million (previous year: EUR -3.3 million). Earnings per share reached EUR -0.17, compared to EUR -0.11 in the previous year.
In the first nine months of the year, Intershop won many new fast-growing customers primarily in the small to medium size segment. The broader customer base will help stabilise the business in the medium term, as Intershop’s scalable platform will allow these customers to grow without having to change the technology platform. In addition, the latest release update, Intershop 7.5, was launched in the third quarter and will further strengthen the technology leadership of the Intershop solution.
Jochen Moll, Board Spokesman of Intershop Communications AG: said: “Small and medium-sized online players are also showing growing demand for our omni-channel-commerce solution. In this segment, we have won a large number of new customers, whose sales potential will grow successively. But this will take time. And being one of the few independent suppliers of e-commerce solutions in the market, we, therefore, need a sound financial basis. After all, permanent austerity measures will not allow us to win market share.”
For the current financial year, the Management Board sticks to the forecast revised in August and projects a single-digit to low double percentage decline in revenues as well as negative earnings before interest and taxes (EBIT) in the medium single digit million euro range.
The report on the first nine months of 2014 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.