INTERSHOP Communications AG — Earnings Release 2007

Oct 25, 2007

News Details

Ad-hoc | 25 October 2007 08:34

Intershop posts profit in third quarter of 2007

Intershop Communications AG / Quarter Results

Release of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer 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.

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 full press release relating to this adhoc disclosure is available at
www.intershop.com.

Public Relations:
Dr. Ute Danz
T: +49-3641-50-1000
F: +49-3641-50-1002
pr@intershop.com

Investor Relations:
Annett Koerbs
T: +49-3641-50-1370
F: +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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