INTERSHOP Communications AG — Earnings Release 2003

Feb 13, 2004

News Details

Ad-hoc | 13 February 2004 08:47

Intershop Communications Reports

Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Intershop Communications Reports Fourth Quarter and Full Year 2003 Financial Results Positive Net Result For the Fourth Quarter 2003 Jena, Germany February 13, 2004 – Intershop Communications AG today announced financial results for the fourth quarter and full year 2003, ended December 31, 2003. Revenue totaled Euro 4.6 million in the fourth quarter of 2003, as compared to Euro 6.5 million in the third quarter of 2003 and Euro 12.0 million in the fourth quarter of 2002. License revenue totaled Euro 1.5 million in the fourth quarter of 2003, as compared to Euro 2.2 million in the third quarter of 2003 and Euro 6.5 million in the fourth quarter of 2002. Revenue for the full year of 2003 totaled Euro 23.2 million, as compared to Euro 45.1 million for the full year of 2002. Total operational cost declined 33% sequentially to Euro 7.2 million in the fourth quarter of 2003. Intershop reduced its total annual operational cost in 2003 by 39%, to Euro 45.0 million. As a result of the continued reduction in total operational cost and other income in connection with terminating business operations in France, Intershop recorded Euro 0.1 in net income in the fourth quarter of 2003 million or Euro 0.00 per share, compared to a net loss of Euro 3.8 million or a net loss of Euro 0.17 per share in the third quarter of 2003. In comparison, Intershops net loss in the fourth quarter of 2002 was Euro 1.0 million or a net loss of Euro 0.05 per share. For the full year of 2003, Intershops net loss totaled Euro 18.6 million or a net loss of Euro 0.90 per share, compared to a net loss of Euro 27.6 million or a net loss of Euro 1.47 per share for the full year of 2002, a year-over-year reduction of 32%. Total cash including cash, cash equivalents, marketable securities, and restricted cash declined from Euro 10.9 million as of September 30, 2003 to Euro 8.8 million as of December 31, 2003. Total cash includes freely available cash, which decreased from Euro 4.2 million as of September 30, 2003 to Euro 2.6 million as of December 31, 2003. Based on a reduced total operational cost base achieved in 2003 and against the backdrop of renewed signs of a recovery in corporate IT spending patterns in 2004, the Company expects to break even on an annual net income basis in 2004. end of ad-hoc-announcement (c)DGAP 13.02.2004 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: About Intershop Intershop Communications AG (Nasdaq: ISHP; Prime Standard: ISH1) is a leading provider of software solutions that help organizations evolve their trading relationships with consumers and business partners online. Founded in 1992, Intershop has a long tradition of driving innovation in e-commerce by automating and simplifying sales and buying processes. Intershop Solutions enable organizations to consolidate and manage unlimited online commerce channels on a single platform. As a result, Intershop customers benefit from reduced operating expenses and competitive advantages in their online sales activities. More than 300 enterprise customers worldwide, including Hewlett-Packard, BMW and Homebase, run Intershop Solutions. Four of the five largest e-commerce sites in Germany rely on Intershop Solutions: Otto, Tchibo, Deutsche Telekom, and Quelle. Intershop is headquartered in Jena, Germany, and has branch offices in the United States, Europe and Asia. More information about Intershop can be found on the Web at http://www.intershop.com. Investor Relations: Klaus F. Gruendel T: +49-3641-50-1307 F: +49-3641-50-1002 k.gruendel@intershop.com Press: Dana Schmidt T: +49-3641-50-1000 F: +49-3641-50-1002 d.schmidt@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. Additional information regarding factors that potentially could affect Intershop’s business, financial condition and operating results is included in Intershop’s filings with the Securities and Exchange Commission, including the Company’s Form 20-F dated June 6, 2003. ——————————————————————————– WKN: 747292; ISIN: DE0007472920; Index: NEMAX 50 Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg, Hannover, München und Stuttgart 130847 Feb 04