Jena, Germany, 2016-May-05 — /EPR Retail News/ — Intershop Communications AG (ISIN: DE000A0EPUH1), a leading independent provider of innovative solutions for omni-channel commerce, generated revenues of EUR 7.3 million in the first quarter of 2016 (previous year: EUR 10.0 million). The reduced revenues do not reflect the current order situation but are attributable to project delays resulting from longer acquisition cycles. Several projects initiated by Intershop are expected to be completed in the next months.
Dr. Jochen Wiechen, CEO of Intershop Communications AG, says: “The figures of the first quarter do not paint a realistic picture of Intershop’s current business trend. Due to our increased focus on product revenues, where licensing revenues are collected immediately, fluctuations in revenues resulting from order cycles spanning several quarters are not unusual. It is the forecast for the full year which counts for our investors, and this forecast is confirmed in view of our strong order pipeline.”
Intershop’s strategically important product revenues amounted to EUR 2.7 million in the first three months of the year (previous year: EUR 3.3 million); service revenues came in at approx. EUR 4.5 million in the first quarter, compared to EUR 6.7 million in the prior year period. Product revenues as a percentage of total revenues thus increased from 33% to 38%.
The gross margin was up by five percentage points on the previous year to 44%. At EUR 4.6 million, operating expenses were up by 6% on the prior year period, which is mainly attributable to short-time work in the prior year quarter. Earnings before interest and taxes (EBIT) were negative at EUR -1.4 million (previous year: EUR -0.4 million) due to the lower revenue base. Before deduction of depreciation/amortisation, which was lower than in the previous year, EBITDA amounted to EUR -0.8 million (previous year: EUR 0.7 million). Earnings after taxes stood at EUR -1.5 million, compared to EUR -0.5 million in the prior year quarter. Earnings per share amounted to EUR -0.05 (previous year: EUR -0.02).
Cash flow from operations came in at EUR -0.9 million in the reporting period (previous year: EUR 1.5 million). The cash outflow is primarily attributable to the negative result for the quarter. At EUR 14.2 million, cash and cash equivalents exceeded the prior year level by a good EUR 6.9 million as of 31 March 2016. This reflects the company’s improved financial positioning resulting from last year’s financial measures. At 57%, the Intershop Group’s equity ratio almost reached the level of 31 December 2015.
Dr. Jochen Wiechen, CEO of Intershop Communications AG, says: “Our well-filled pipeline makes us optimistic about the current quarter. 2016 will see us continue focusing on expanding our strategic growth segments. This comprises our extended cloud offerings to be presented before the end of this year as well as the effective development of the B2B segment, which, according to Forrester, is the fastest growing e-commerce segment worldwide. The investment by Shareholder Value Management AG results in a stable shareholder structure, thereby additionally driving our operational business and our capital market performance.”
Intershop confirms its forecast for the full year 2016 and expects revenues at the prior year level as well as a moderate increase in earnings before interest and taxes (EBIT).
The interim report on the first three months of 2016 is available for download at http://www.intershop.com/investors-financial-reports.
Intershop Communications AG (founded in Germany 1992; Prime Standard: ISH2) is the leading independent provider of omni-channel commerce solutions. Intershop offers high-performance packaged software for internet sales, complemented by all necessary services. Intershop also acts as a business process outsourcing provider, covering all aspects of online retailing up to fulfillment. Around the globe more than 300 enterprise customers, including HP, BMW, Bosch, and Deutsche Telekom run Intershop solutions. Intershop is headquartered in Jena, Germany, and has offices in the United States, Europe, Australia, and China. More information about Intershop can be found online at www.intershop.com.
This news release contains forward-looking statements regarding future events or the future financial and operational performance of Intershop. Actual events or performance may differ materially from those contained or implied in such forward-looking statements. Risks and uncertainties that could lead to such difference could include, among other things: Intershop’s limited operating history, the unpredictability of future revenues and expenses and potential fluctuations in revenues and operating results, significant dependence on large single customer deals, consumer trends, the level of competition, seasonality, risks related to electronic security, possible governmental regulation, and general economic conditions.
Intershop Public Relations
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