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TMCNet:  DGAP-News: Intershop continues to strengthen its product business in Q1 2014

[May 07, 2014]

DGAP-News: Intershop continues to strengthen its product business in Q1 2014

(DGAP Corporate News Via Acquire Media NewsEdge) DGAP-News: Intershop Communications AG / Key word(s): Quarter Results Intershop continues to strengthen its product business in Q1 2014 07.05.2014 / 08:12 --------------------------------------------------------------------- - Licensing revenues grow strongly (+64%) - Net revenues at prior year level - Positive operating cash flow Jena, 7 May 2014 - Intershop Communications AG (ISIN: DE000A0EPUH1), leading independent provider of innovative solutions for omni-channel commerce, continues to drive forward its refocusing on the product business. In the first three months of 2014 Intershop generated net revenues of EUR 12.0 million (previous year: EUR 12.2 million) and continued the strongly positive trend of increased licensing revenues.


Those grew by 64% to EUR 1.1 million. Service, maintenance and other revenues also developed favourably and declined only because of lower revenues with two major customers by 5% to EUR 10.9 million.

Resulting from continued high investments in sales and marketing earnings before interest and tax (EBIT) remained with EUR -1.7 million at the prior year level. By contrast, the gross profit was increased by 12% to EUR 3.9 million. Intershop's earnings before interests, tax, depreciation and amortisation (EBITDA) came in at EUR -0.7 million. Operating expenses increased by approx. 10% to EUR 5.8 million primarily due to higher marketing expenses. Earnings per share amounted to EUR -0.06 (previous year: EUR -0.06).

Intershop's net assets and financial position remains solid. The equity ratio stands at a high 69%. Liquid funds amounted to EUR 7.3 million as of the reporting date, and were, thus, at their year-end level. Moreover, Intershop generated a positive operating cash flow of EUR 0.7 million, compared to EUR -0.6 million in the first quarter of the previous year.

Ludwig Lutter, CFO of Intershop Communications AG: "The e-commerce market is in a critical phase in which further growth hinges on partnerships for innovations as well as for sales activities. This is why we must continue to invest in expanding our sales force and our international partner network in order to win additional customers and to continuously expand our product business. In doing so, we will broaden our income base to finance continued investment in future growth." The first quarter saw Intershop launch another marketing and sales initiative centring on the company's revised brand identity including new sales materials and a new website. Moreover, an important cooperation with the US software company Adobe Systems was started in the reporting period.

Another highlight of the marketing initiative was the first "Intershop Summit", which took place in Berlin in early April. The company used this event to present new developments relating to the Intershop omni-channel platform as well as the new innovation initiative "Seed - Growing Ideas", in the context of which Intershop will act as an incubator to support young start-ups and offer them the possibility to bring their ideas and concepts into the market, with the help of an experienced and established player.

"Thanks to our high R&D investments in the further development of our core product, which we made over the past years, we are today one of the technological market leaders. The same must now be achieved on the sales side. To keep pace with global competition, this will require further investments. In this context, we are also considering a capital increase, which we will ask our shareholders to approve at the upcoming Stockholders' Meeting," Jochen Moll, CEO of Intershop Communications AG states.

For the current financial year, Intershop continues to project a single-digit percentage increase in net revenues as well as negative EBIT in the low single-digit million euro range.

The report on the first three months of 2014 is available for downloading at http://www.intershop.com/investors-financial-reports.

Contact: Investor Relations Heide Rausch T: +49-3641-50-1000 F: +49-3641-50-1001 ir@intershop.com End of Corporate News --------------------------------------------------------------------- 07.05.2014 Dissemination of a Corporate News, transmitted by DGAP - a company of EQS Group AG.

The issuer is solely responsible for the content of this announcement.

DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.

Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: Intershop Communications AG Intershop Tower 07740 Jena Germany 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, Düsseldorf, Hamburg, München, Stuttgart End of News DGAP News-Service --------------------------------------------------------------------- 266746 07.05.2014

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