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Jena, 5 August 2015 – Intershop Communications AG (ISIN: DE000A0EPUH1), the leading independent provider of innovative solutions for omni-channel commerce, clearly improved its business performance in the first half of 2015, as the positive trend of the first three months was confirmed in the second quarter.
While Intershop’s revenues, as expected, continued to decline in the first half of the year to EUR 21 million (-12%), like-for-like revenues – adjusted for the sale of the online marketing activities – were down by a much lower 3%. Intershop made good progress in strengthening its focus on the product business. Product revenues (licenses and maintenance) grew by a strong 21% to EUR 7.3 million. The product business now accounts for 35% of total revenues, up from 26%. The positive trend was primarily supported by license sales, which rose by 43% to EUR 3.4 million. Maintenance revenues climbed 7% to roughly EUR 4.0 million. At EUR 13.6 million, service revenues were down by 23% on the previous year due to the sale of SoQuero, the online marketing subsidiary, and the previously announced drop in revenues from two key accounts. Adjusted for these effects, Intershop’s service revenues also showed a positive trend (+7%).
Says Jochen Moll, Spokesman of the Management Board of Intershop Communications AG: “Developments in the first half of the year have been encouraging and support our intention to push ahead Intershop’s transformation from a service provider to an integrated provider of omni-channel solutions. Thanks to the increased market presence resulting from our constantly growing partner network we have signed contracts with far more new customers than a year ago.”
Increased high-margin product revenues and an improved cost structure led to a gross result of EUR 8.8 million in the first half of the year, which sent the gross margin rising by 10 percentage points to 42%. Operating expenses declined by 21% to EUR 9.4 million, which is primarily attributable to reduced sales and marketing expenses (-33%). Earnings before interest, taxes, depreciation and amortisation (EBITDA) improved to EUR 1.4 million, up from EUR -2.2 million in the prior year period. At EUR -0.5 million, earnings before interest and taxes also improved notably (previous year: EUR -4.3 million). First-half earnings after taxes amounted to EUR ‑0.6 million (previous year: EUR -4.4 million). Earnings per share stood at EUR -0.02, compared to EUR -0.14 in the previous year.
The cash position has also improved significantly since the end of 2014. Cash and cash equivalents climbed from EUR 6.4 million to EUR 7.7 million. Operating cash flow rose from EUR 0.5 million in the prior year period to EUR 2.5 million.
Says Jochen Moll: “The positive cash flow and the EUR 6 million loan raised in July give us the financial scope we need to successfully launch further product innovations in the highly competitive market. This is also helped by the fact that our B2B solution has again been classified in the “Leader” category by the industry analysts from Forrester Research.”
The interim report on the first six 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.