INTERSHOP Communications AG — Earnings Release 2008

Aug 7, 2008

News Details

Corporate | 7 August 2008 08:37

Intershop continues on positive growth path with renewed profit

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.

---

• Net profit for the fourth consecutive quarter
• Revenue growth of 9% in the first six months of 2008
• Unrestricted cash and cash equivalents now risen to EUR 7.4 million

Jena, Germany, August 7, 2008 – Intershop Communications AG (Prime
Standard: ISH2) today announced its results for the second quarter and the
first half of 2008.

Intershop ended the past three months in profit for the fourth consecutive
time. Earnings before tax for the first half of 2008 amounted to EUR 0.8
million. Half of this figure was generated in Q2, despite a one-time charge
of EUR 0.25 million in this quarter. This means the Company has recorded
positive net earnings from operating activities (before restructuring
expenses in 2007) for the fifth consecutive quarter, and positive net
earnings overall for the fourth consecutive quarter.

'We are now turning a profit on a regular basis and will close fiscal year
2008 well in the black. Our results for the first half of the year are a
first contribution to this. Support for this forecast comes from our strong
order situation and encouraging talks with both potential customers and
promising business partners. We expect revenues to continue rising in the
second half of 2008', said Intershop's CEO Henry Göttler.

Revenues
Intershop's gross revenues rose by 11% to EUR 16.1 million in the first six
months of fiscal year 2008, up from EUR 14.6 million in the prior-year
period; total net revenues were up 9% year-on-year, from EUR 12.7 million
to EUR 13.8 million. Net revenues from services, maintenance, and other
included in this figure rose by 21%, from EUR 9.8 million to EUR 11.9
million. In the second quarter of 2008, this item increased by 10% compared
with the prior-year period, from EUR 5.5 million to EUR 6.0 million. Total
net revenues for the quarter amounted to EUR 6.9 million, compared with EUR
7.5 million in the prior-year quarter (however, it should be noted that the
figure for the corresponding prior-year quarter includes license revenues
of EUR 1.4 million from a major order).

Earnings
Intershop was able to sustain its positive earnings trend thanks to its
results for the second quarter: the result from operating activities (EBIT)
amounted to EUR 0.4 million in the second quarter of 2008. Overall, EBIT of
EUR 0.8 million was generated in the first half of 2008. EBIT in both the
comparable prior-year quarter and the first six months of 2007 was clearly
negative, at EUR -1.6 million and EUR -3.0 million respectively. The EBIT
margin improved as against the first half of 2007 from -24% to +6%.

Earnings after tax totaled EUR 0.3 million in Q2 2008, while Intershop's
earnings per share were EUR 0.01. Overall, earnings after tax for the first
six months amounted to EUR 0.6 million and earnings per share were EUR
0.02. In the prior-year quarter and the first half of 2007, losses after
tax of EUR 1.7 million and EUR 3.1 million respectively were recorded,
resulting in losses per share of EUR 0.07 and EUR 0.12.

Balance sheet and cash flow
Intershop's equity increased from EUR 12.4 million as of December 31, 2007
to EUR 13.3 million as of June 30, 2008. The equity ratio was unchanged at
53%.

Unrestricted cash increased from EUR 5.9 million as of December 31, 2007
and EUR 2.7 million as of June 30, 2007 to EUR 7.4 million as of June 30,
2008. Total liquidity (cash and restricted cash) amounted to EUR 9.0
million as of June 30, 2008.

Operating activities
In the first six months of this year, the Company's consulting activities,
which generate the highest revenues, focused on projects for major
customers on several continents. As a result, consulting revenues increased
by a total of 30% in 2008 compared with the first half of 2007, to EUR 7.0
million. A number of long-term service contracts should also ensure stable
growth in business activities in the future.

In May, Trading Post, a subsidiary of the leading Australian communications
company Telstra, launched the continent's largest advertising and auction
portal using Intershop's Enfinity Suite 6 software.

Intershop's longstanding customer Linde has also opted to use Intershop's
technology for its North American activities; its Material Handling North
America business went live at lindelink.com.

Over the course of the second quarter, Intershop received a number of new
license orders, including from the Australian company Sensis.

In recent months, Intershop and its regional partners presented their joint
product portfolio comprising e-commerce standard software and expert
regional consulting and support at Internet World in London and at the
Italian forum netcomm, among other events. In the USA, the Company was
represented at the first Internet Retailer Show, and it was also involved
in several online-marketing events in Germany.

Following the departure of previous CEO Andreas Riedel, Henry Göttler was
appointed to the Management Board at the end of June. In his previous role
as Vice President, he was responsible for Software Development,
Full-Service E-Commerce, and Customer Support.

As of June 30, 2008, Intershop had 247 full-time employees worldwide
compared with 229 at the same reporting date in 2007. This increase is due
to the planned expansion of the Company's technical areas.

Outlook
The results for the first six months of 2008 confirm the forecast that
Intershop will generate a significant profit for 2008 as a whole.

'We have created the financial preconditions that will allow us to focus
all our energies on implementing long-term strategic tasks and further
increasing Intershop's profitability. We are currently finalizing the
planning for this, which covers Intershop's next generation of software and
the continued development of regional markets and sector solutions, as well
as entry onto, and the expansion of, new strategic business areas. Internet
revenues are increasing in all sectors and regions. With our experience,
our proven Enfinity technology, and our employees' expertise and
commitment, we will continue to make a sustained contribution to our
customers' e-commerce success and share in it ourselves', is how CEO Henry
Göttler explained the direction the Company's future development will take.

The full financial statements (balance sheet, income statement, statement
of cash flows, and statement of changes in equity) are available at
www.intershop.de/news.

About Intershop
Intershop Communications (Prime Standard: ISH2) is a leading provider of
comprehensive global e-commerce and online marketing solutions. Founded in
1992, Intershop has a long tradition of driving innovation in e-commerce by
automating and simplifying business processes for mid to large-sized
organizations. Intershop’s Enfinity software suite offers a highly
scalable and robust solutions for conducting online business, complemented
by all necessary technical and business consulting services. Intershop also
acts as a business process outsourcing (BPO) provider, managing all aspects
of online retailing, including fulfillment, online marketing and hosting.
Around the globe more than 320 enterprise customers, including HP, Sun
Microsystems, BMW, and Deutsche Telekom run Intershop solutions. Intershop
has offices in the United States, Europe, and Asia. More information about
Intershop can be found on the Web at www.intershop.com.

Intershop Press Contact:
Dr. Ute Danz
Tel: +49-3641-50-1000, pr@intershop.de, www.intershop.de/news

Intershop Investor Relations Contact:
Annett Koerbs
Tel.: +49-3641-50-1370, ir@intershop.de, www.intershop.de/investors

07.08.2008 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: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Stuttgart, München, Hamburg, Düsseldorf

End of News DGAP News-Service

---