INTERSHOP Communications AG — Earnings Release 2007

Oct 25, 2007

News Details

Corporate | 25 October 2007 08:52

Intershop posts profit in third quarter of 2007

Intershop Communications AG / Quarter Results

Release of a Corporate News, transmitted by DGAP - a company of EquityStory
AG.
The issuer / publisher is solely responsible for the content of this announcement.

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 Profit in third quarter of 2007
 Revenues increased 61% year-on-year
 Cash position increases

Jena, October 25, 2007 – Intershop Communications AG (Prime Standard: ISH2)
generated positive earnings of EUR 0.6 million after tax in the third
quarter of 2007. Cost reductions due to restructuring measures are starting
to have a positive effect. Revenues increased by 61% year-on-year to EUR
7.9 million.

Revenues
In the third quarter of 2007, total revenues increased by 61% year-on-year
from EUR 4.9 million to EUR 7.9 million. Total revenues in the first nine
months of 2007 rose by 58% as against the prior-year period from EUR 14.3
million to EUR 22.5 million. Revenues in the first nine months of 2007 are
therefore already higher than the 2006 full-year revenues of EUR 19.8
million.
License revenues included in total revenues doubled from EUR 0.6 million in
the third quarter of 2006 to EUR 1.2 million in the third quarter of 2007.
On a nine-month basis, license revenues rose by 18% from EUR 3.5 million in
2006 to EUR 4.1 million in 2007.
Service revenues increased by 55% from EUR 4.3 million in the third quarter
of 2006 to EUR 6.7 million in the third quarter of 2007. In the first nine
months of 2007, the Company generated service revenues of EUR 18.4 million,
compared with EUR 10.8 million in the prior-year period. These revenues
include online marketing revenues only as of the third quarter of 2006.

Earnings
The result from operating activities (EBIT) was EUR 0.6 million in the
third quarter of 2007, the first time it has been positive for six
quarters. EBIT in the prior-year quarter was EUR -1.5 million. The EBIT
margin rose from -31% to +7%. Earnings after tax reached EUR 0.6 million at
the end of the third quarter. In the third quarter of 2006, earnings after
tax were EUR -1.6 million. Earnings per share were EUR 0.03. The third
quarter of 2006 recorded a loss of EUR 0.07 per share.
In the first nine months of 2007, EBIT rose from EUR -3.9 million in 2006
to EUR -2.4 million. Thus the positive EBIT in the third quarter of 2007
could not offset losses from the first half of 2007. Net loss for the first
nine months of fiscal year 2007 was EUR 2.5 million or EUR 0.11 per share,
compared with EUR 4.4 million or EUR 0.20 per share in the prior-year
period. This represents a reduction of 44%.

Balance Sheet and Cash Flow
Equity rose 31% in the past 12 months and amounted to EUR 11.3 million as
of September 30 this year. The equity ratio was 47%.
Cash flow in the third quarter of 2007 was also positive. Unrestricted cash
increased from EUR 3.6 million as of December 31, 2006 and EUR 2.7 million
as of June 30, 2007 to EUR 5.2 million as of September 30, 2007. Total
liquidity (cash and restricted cash) was EUR 9.3 million as of September
30, 2007, compared with EUR 9.0 million as of June 30, 2007 and EUR 11.2
million as of December 31, 2006.
Intershop received EUR 4.8 million from a cash capital increase implemented
in August 2007. At the same time, Intershop paid the landlord of its
headquarters in Jena a partial amount of EUR 4.0 million on the total
settlement of EUR 5.5 million in the third quarter of 2007.

Operating Activities in the Third Quarter of 2007
Intershop acquired new customers in the past quarter, including Kingfield
Heath, a stationery supplier in the United Kingdom and Ireland, and a
number of other European companies.
Since the last quarter, Intershop’s Online Marketing Division has been
supporting financial services provider MLP AG, Hanseatisches Wein & Sekt
Kontor, Germany’s leading supplier of premium wines and champagnes, and
discount24, a well-known online retailer especially in the area of consumer
electronics, among other instances.
After only four months’ project duration, www.hagebau.de, the common
e-commerce presence of a joint venture between Otto Group, Hamburg, and
hagebau, went live in July 2007.
The third quarter also saw the completion of significant portions of the
project to put the myby online shop into operation on October 1, 2007.
Myby, a joint venture between Arcandor (formerly KarstadtQuelle) and Axel
Springer, is a new online market specializing in electronics.
Going forward, Intershop-Software Enfinity Suite 6 will offer a new
connection to online payment systems as a standard function. Intershop and
PayPal will together develop the certified PayPal standard interface.
In September 2007, the Company launched its new international partner
program to increase cooperation with its sales, solutions, and technology
partners.
At the end of September 2007, Intershop unveiled its new positioning as an
end-to-end e-commerce solutions provider at the OMD (Online Marketing
Düsseldorf), Germany’s most important trade fair for digital marketing.
As of September 30, 2007, Intershop employed 225 full-time equivalents
worldwide, compared with 247 as of December 31, 2006 and 244 as of
September 30, 2006.

Outlook
In light of the positive growth in the third quarter of 2007 on the back of
significant cost reductions and increased revenues in its service
functions, Intershop is expecting a positive after-tax earnings and a
positive cash flow for the second half of 2007.

'The restructuring measures initiated in the second quarter are starting to
have a positive effect on costs,' said Andreas Riedel, Chairman of the
Management Board of Intershop Communications AG. 'Costs are now moving
within an acceptable range. We are recording a positive trend in our
revenues. The current order situation for the fourth quarter also looks
positive, and we can therefore expect a positive second half of 2007,' he
continued.

The complete financial statements (balance sheet, income statement,
statement of cash flows and statement of equity) can be found at
www.intershop.de/news.

Intershop Press Contact:
Dr. Ute Danz
Tel: +49.3641.50-1000, pr@intershop.com

Investor Relations:
Annett Körbs
Tel: +49.3641.50-1370, Fax: +49-3641-50-1309, ir@intershop.com

25.10.2007 Financial News transmitted by DGAP

Language: English
Issuer: Intershop Communications AG
Intershop Tower
07740 Jena
Deutschland
Phone: +49 (0)3641-50-0
Fax: +49 (0)3641-50-1002
E-mail: ir@intershop.de
Internet: www.intershop.de
ISIN: DE000A0EPUH1, DE000A0C4ZE3
WKN: A0EPUH, A0C4ZE
Indices: CDAX, PRIMEALL, TECHALLSHARE
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, München, Hamburg, Düsseldorf

End of News DGAP News-Service

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