INTERSHOP Communications AG — Earnings Release 2007

Jul 26, 2007

News Details

Ad-hoc | 26 July 2007 08:32

Intershop Communications AG Announces Q2 2007 Results

Intershop Communications AG / Quarter Results/Profit Warning

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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Jena, Germany, July 26, 2007 - Intershop Communications AG (Prime Standard:
ISH2) today announced its results for the second quarter of 2007 ended June
30, 2007, and revised its full-year forecast due to extraordinary
restructuring costs.

In the second quarter of 2007, Intershop increased its revenues
significantly. Total revenues rose by 38% as against the previous quarter
from EUR 6.1 million to EUR 8.5 million, double the figure for the second
quarter of 2006.
License revenues included in the total revenues rose from EUR 0.8 million
in the previous quarter to EUR 2.1 million (+154%), double the figure for
the second quarter of 2006. License revenues in the second quarter of 2007
included EUR 1.4 million in revenues from a major order.
Service revenues increased from EUR 5.3 million in the previous quarter to
EUR 6.4 million (+20%). By comparison, service revenues were EUR 3.2
million in the second quarter of 2006, not including online marketing
revenues. These online marketing revenues amounted to EUR 1.5 million in
the second quarter of 2007.

Total operating costs (cost of revenues plus operating expenses and income)
amounted to EUR 10.1 million, as compared with EUR 7.5 million in the
previous quarter. Adjusted for EUR 2.1 million in restructuring costs
included in this amount, this represents an increase of 7% for a revenue
increase of 38%. The restructuring costs include an extraordinary increase
of EUR 1.4 million in provisions for litigation risks relating to the
dispute with the landlord of the Intershop Tower headquarters in Jena,
final settlement of which is being sought in the short term. Also included
are EUR 0.7 million in personnel-related costs for the implementation of
the restructuring program that was announced in April.
In the second quarter of 2006, total operating costs amounted to EUR 5.4
million; however, no online marketing costs were incurred in the
corresponding quarter (in Q2 2007: EUR 1.4 million). In addition, other
operating income from a legal dispute in the amount of EUR 1.0 million was
reported.

Intershop’s net loss including restructuring costs in the second quarter of
2007 was EUR 1.7 million, or EUR 0.08 per share. Before adjustment for the
restructuring costs, the company reported a net profit of EUR 0.4 million,
or EUR 0.02 per share, in the quarter under review. In the first quarter of
2007, Intershop’s net loss was EUR 1.4 million, or EUR 0.07 per share. In
the second quarter, the net loss was EUR 1.3 million, or EUR 0.06 per
share.

Cash flow in the second quarter is positive. The Company’s total liquidity
(cash, marketable securities, and restricted cash) rose from EUR 8.1
million as of March 31, 2007 to EUR 9.0 million as of June 30, 2007. As of
December 31, 2006, total liquidity was EUR 11.2 million. Unrestricted cash
increased from EUR 1.8 million as of March 31, 2007 to EUR 2.7 million as
of June 30, 2007. As of December 31, 2006, it was EUR 3.6 million.

Outlook
The Company expects to break even and generate a positive cash flow in the
second half of 2007. This positive assessment is based on significant cost
reductions and clear increases in revenue. The order situation at the
beginning of the third quarter is encouraging.
Due to the high net loss in the first quarter of 2007 and the net loss in
the second quarter of 2007 resulting from the substantial restructuring
costs, the Company currently does not expect to meet its positive net
earnings forecast for fiscal year 2007.

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

Public Relations:
Dana Schmidt
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

DGAP 26.07.2007

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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