PRESS RELEASE: Intershop continues on positive growth path with renewed profit

 
Intershop Communications AG / Quarter Results 
 
07.08.2008 
 
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. 
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  - 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 
 
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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 
 
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August 07, 2008 02:37 ET (06:37 GMT)

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