INTERSHOP Communications AG — Earnings Release 2008

Feb 18, 2009

News Details

Ad-hoc | 18 February 2009 08:35

Intershop Reports Significant Profit for Its Most Successful Fiscal Year Yet

Intershop Communications AG / Final 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.

---

• Intershop Communications AG closes 2008 with EBIT of around EUR 1.9
  million
• Equity ratio rises significantly to 66%
• Unrestricted cash increases to EUR 8.1 million in spite of repayment of
  last financial liability
• Profit after tax in Q4 exceeds EUR 0.4 million

Jena (Germany), February 18, 2009 – Intershop Communications AG today
announced the preliminary results for the fourth quarter ended December 31,
2008 and for fiscal year 2008.

In 2008, Intershop had its most successful fiscal year in the Company's
history, with continuous increases in revenues, profit, and unrestricted
cash. The significant profit announced for the past fiscal year amounted to
EUR 1.5 million, of which EUR 0.4 million was generated in the fourth
quarter of 2008 alone.

In spite of the repayment of a convertible bond amounting to EUR 0.9
million in December 2008, the Company's unrestricted cash continued to rise
in the fourth quarter. This means that Intershop no longer has any
financial liabilities. The Company's unrestricted cash increased by EUR 2.1
million in the course of the year. The equity ratio as of December 31, 2008
rose to a respectable 66%.

Revenues
Total net revenues advanced from EUR 26.9 million in 2007 to EUR 28.1
million in 2008. Net revenues from services, maintenance, and other
included in this figure increased by 14%, from EUR 21.2 million to EUR 24.0
million. This increase is primarily the result of sharply higher consulting
and online marketing revenues. In both these areas, Intershop was awarded a
number of major multi-year service contracts in 2008.

In the fourth quarter of 2008, total net revenues amounted to EUR 7.3
million, compared with EUR 7.2 million in the prior-year period. Net
revenues from services, maintenance, and other included in this figure rose
by 13%, from EUR 5.5 million to EUR 6.2 million.

Earnings
Intershop recorded a positive result for the year for the first time in the
Company's history. Net earnings increased from a loss of EUR 2.0 million in
2007 to a profit of EUR 1.5 million in fiscal year 2008. The Company's
result from operating activities (EBIT) amounted to EUR 1.9 million, while
the EBIT margin reached 7%. In the previous fiscal year, Intershop had
reported a negative EBIT margin of 7% (EBIT: EUR -1.9 million). The
earnings per share were EUR 0.06, as against EUR 0.08 loss per share in the
previous year. EBIT in the fourth quarter of 2008 was EUR 0.4 million and
the EBIT margin was 6 % (Q4 2007: EUR 0.5 million and 7% respectively).

Earnings from Intershop’s operative core business exceeded reported EBIT
results for fiscal year 2008 and the fourth quarter by EUR 0.8 million.
Intershop set this sum aside as a one-off, non-cash provision related to
rental expenses until 2013.

Balance sheet and cash flow
Intershop's equity increased by 32% year-on-year, from EUR 12.4 million as
of December 31, 2007 to EUR 16.3 million as of December 31, 2008. The
equity ratio rose from 53% to 66%. The Company's only financial liability,
a convertible bond issued in 2004, was repaid in December. As of December
31, 2008, Intershop had unrestricted cash of EUR 8.1 million, 36% more than
as of December 31, 2007 (December 31, 2007: EUR 5.9 million).

Outlook
Intershop expects that the sustained positive trend, which began in
mid-2007, will continue in 2009. Although it is difficult to estimate the
specific impact on Intershop of the global financial and economic crisis,
the Company's current situation provides a sound basis for further
expansion of its business activities and for increased earnings:
- Its comfortable cash position and positive cash flow make operations
completely independent from lenders and offer favorable investment
opportunities in the current economic environment.
- Long-term agreements with corporate customers in different sectors and
regions now secure a considerable portion of revenues, including far
beyond the end of 2009. Intershop will continue this strategy of making
its income more consistent.
- Version 6.3 of the Enfinity Suite software, which was released at the
beginning of 2009, provides considerable competitive advantages for
both Intershop and its customers.
- Investments in online marketing and Internet-based sales solutions
could become instrumental in dealing with the current crisis for many
companies. Intershop's comprehensive know-how, mature technology,
full-service offerings, and powerful network of partners are of
particular relevance in these areas.

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

18.02.2009 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

---