DGAP-News: Intershop Communications AG / Key word(s): 9 Month figures
INTERSHOP Communications AG publishes figures for the first nine months of 2019

30.10.2019 / 08:14
The issuer is solely responsible for the content of this announcement.


- New cloud orders up 52%, cloud revenues grow by 19%
- Consolidated nine-month revenues of EUR 23.4 million almost on a par with the previous year
- Operating result (EBIT) of EUR -4.6 million
- Full year 2019: Moderate revenue growth and negative operating result (EBIT) in the medium single-digit million euro range

Jena, 30 October 2019 - The first nine months of 2019 saw INTERSHOP Communications AG (ISIN: DE000A0EPUH1), a leading independent provider of innovative solutions for omnichannel commerce, continue its transformation from a license provider into a provider of commerce-as-a-service solutions (CaaS).

At EUR 23.4 million, revenues in the first nine months of 2019 were down by a moderate 2% on the previous year. The reduced revenues are primarily attributable to the strategic shift to the cloud business, which entails a change from immediately received license revenues to monthly recurring cloud revenues. Intershop has continuously grown its revenues over the course of the past quarters, with third-quarter revenues up by 3% on the prior year period to EUR 8.1 million. Incoming cloud orders rose by 52% to EUR 4.8 million in the first nine months of 2019 (previous year: EUR 3.2 million).

At segment level, cloud and subscription revenues increased by 19% to EUR 4.6 million. Cloud ARR (annual recurring revenues) rose by 31% to EUR 6.4 million as of the end of September 2019 (previous year: EUR 4.9 million). License and maintenance revenues declined by 7% to EUR 7.3 million on a nine-month basis. Software and cloud revenues accounted for 51% of total revenues in the reporting period (previous year: 49%) and will increasingly shift structurally from license to cloud and subscription revenues. Service revenues increased by 7% to EUR 4.2 million in the third quarter (Q3/2018: EUR 3.9 million). At EUR 11.4 million, service revenues for the first nine months of the year were still 6% below the prior year period (EUR 12.1 million).

The gross margin decreased by eight percentage points to 33% as a result of the changed revenue structure. Operating expenses declined by 8% to EUR 12.3 million. Marketing and sales expenses were reduced by 10% to EUR 6.5 million. At EUR 3.5 million, R&D expenses were on a par with the previous year. Administrative expenses dropped by 7% to EUR 2.5 million. Earnings before interest and taxes (EBIT) improved to EUR -0.9 million in the third quarter (previous year: EUR -1.7 million), resulting in a loss of EUR -4.6 million for the first nine months of the year (previous year: EUR -3.7 million). Earnings before interest, taxes, depreciation and amortization (EBITDA) stood at EUR -1.5 million (previous year: EUR -2.1 million). The net loss for the period after taxes amounted to EUR -4.8 million (previous year: EUR -3.9 million).

At EUR 17.5 million, Group equity was up by 28% compared to the end of 2018, mainly due to two capital increases carried out in the reporting period. The equity ratio stood at 62% as of 30 September 2019 (31 December 2018: 60%). Cash and cash equivalents increased by EUR 1.7 million to EUR 8.9 million. Cash flow from operations amounted to EUR -1.7 million, compared to EUR -2.5 million in the prior year period.

In spite of the progress made in the course of the year, the current momentum is insufficient to achieve the original targets for 2019 and 2020, which is why Intershop adjusted its forecast on 15 October 2019. Management now projects moderate year-on-year revenue growth (previously revenue growth of more than 10%) and a negative operating result (EBIT) in the medium single-digit million euro range (previously slightly negative EBIT) for the full year 2019.

"The cloud transformation of our business model is making progress and we will turn around our revenues by the end of the year," said Dr. Jochen Wiechen, CEO of INTERSHOP Communications AG. "But the process requires more time and resources than previously expected. Together with the Supervisory Board, we have therefore decided to launch a restructuring program and to adjust our plans and budgets to the current market conditions in order to conclude the cloud transformation successfully. After all, the successful transformation will secure our frequently confirmed technological leadership and is the key to the positive development of our company and new growth."

The interim report for the first nine months of 2019 is available at https://www.intershop.com/financial-reports.


Contact:
Investor Relations
Heide Rausch
T: +49-3641-50-1000
F: +49-3641-50-1309
ir@intershop.com



30.10.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Language: English
Company: Intershop Communications AG
Intershop Tower
07740 Jena
Germany
Phone: +49 (0)3641-50-0
Fax: +49 (0)3641-50-1309
E-mail: ir@intershop.de
Internet: www.intershop.de
ISIN: DE000A0EPUH1
WKN: A0EPUH
Indices: CDAX, PRIMEALL, TECHALLSHARE
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 900219

 
End of News DGAP News Service

900219  30.10.2019 

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