Jena/San Francisco, October 27, 2008 – Intershop Communications AG (Prime Standard: ISH2) won a contract last week to provide software and services totaling more than USD 1.7 million. In line with the payment terms, the entire contract volume will be recognized as income in the current quarter. This allows Intershop to extend its comfortable economic situation. This can be seen from an equity ratio during the first half of the year of 53% and unrestricted cash and cash equivalents of around EUR 7.4 million.
This contract provides the Client, a major customer from the U.S., with additional licenses for the Enfinity Suite 6 e-commerce software worth more than USD 0.4 million. Intershop will also provide USD 1.3 million in services for the next three years. Intershop will fully support the client with maintenance, operation, and expansion of their Enfinity system, which is the technical platform for their global business customers.
Henry Göttler from Intershop's Management Board states, "This contract represents how Intershop continues to expand and receive major orders from its largest customers year after year. Intershop also proves its immunity to temporary market fluctuations by expanding and ensuring long-term, contract-based customer relationships. With planning security and financial flexibility, Intershop can continue development of the latest versions of our solution. Given the current global economic situation, I would like to emphasize the substantial trust our customers including this major international group has in Intershop and our software and their appreciation of the reliability, commitment, and expertise of our services operations."
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.