DGAP-News: Intershop Communications AG

- Total revenues of EUR 35.8 million (previous year: EUR 34.2 million)
- EBITDA of EUR 2.8 million (previous year: EUR 0.1 million)
- EBIT of EUR 0.4 million (previous year: EUR -2.4 million)
- "Cloud First" - focus on expanding the cloud business

Jena, 21 February 2018 - Intershop Communications AG (ISIN: DE000A0EPUH1), a leading independent provider of innovative solutions for omnichannel commerce, grew its revenues by 5% and generated positive EBIT (earnings before interest and taxes) amounted to EUR 0.4 million in the fiscal year 2017. This is the first time in four years that Intershop was able to increase its revenues. In total, consolidated revenues climbed to EUR 35.8 million (previous year: EUR 34.2 million). This growth is mainly attributable to the positive trend in licensing revenues and to a sharp rise in full-service revenues.

Product revenues picked up by 3% to EUR 14.1 million in the reporting period. The related licensing revenues climbed 8% to EUR 6.1 million. New customers accounted for close to one third of the revenues. In the second half of the year, the company additionally recorded a large number of incoming orders for cloud licenses, which will lead to continuous income in the following quarters. Maintenance revenues stayed at the prior year level of EUR 8.0 million.

Over the course of the year, Intershop's service revenues increased continuously from quarter to quarter and finally reached EUR 21.7 million, up 6% on the previous year. Although consulting and training revenues, which are included in service revenues, declined by a moderate 3% to EUR 15.4 million, they again made the biggest contribution (43%) to Intershop's total revenues. At the same time, full-service revenues rose significantly by 37% to EUR 6.3 million. This increase was attributable to the good new business trend in this segment. The share of service revenues in total revenues rose moderately to 61% (previous year: 60%).

Intershop improved its earnings notably in the fiscal year 2017. The Group's gross margin climbed three percentage points to 49% (previous year: 46%). Earnings before interest and taxes (EBIT) amounted to EUR 0.4 million at the end of the fiscal year (previous year: EUR -2.4 million), while the EBIT margin stood at 1% (previous year: -7%). EBIT was slightly positive in each quarter throughout the year 2017. Earnings before interest, taxes, depreciation and amortisation (EBITDA) rose sharply from EUR 0.1 million in the previous year to EUR 2.8 million. The EBITDA margin stood at 8% (previous year: 0%). At EUR -0.3 million, the financial result was on a par with the previous year; income taxes increased to EUR 0.7 million (previous year: EUR 0.3 million). This resulted in a consolidated net loss after taxes of EUR -0.7 million (previous year: EUR -3.0 million) and earnings per share of EUR -0.02 (previous year: EUR -0.09).

Total assets of the Intershop Group declined by 8% to EUR 25.0 million as of the balance sheet date on 31 December 2017. As a result of the scheduled repayment of EUR 1.0 million in loans, liabilities to banks were reduced to EUR 2.8 million. Cash and cash equivalents dropped to EUR 8.9 million (previous year: EUR 10.9 million). Cash flow from operations stood at EUR 1.7 million, compared to EUR -0.9 million in the previous year. The equity ratio climbed from 59% to 61% as at 31 December 2017, again testifying to Intershop's sound net assets and financial position. As of the balance sheet date, Intershop employed a total of 338 people worldwide.

Dr. Jochen Wiechen, CEO of Intershop Communications AG: "The year 2017 marked the first success of our "Lighthouse 2020" strategy. Our key task in 2018 will be to accelerate the expansion of the SaaS solutions business, as we expect this market to achieve the highest growth rates. Under the new guideline "Cloud First", we will push ahead with the standardization of our cloud solution. The recently announced expansion of the Management Board will additionally support the company's transformation. We are also planning to make further investments in sales and marketing. We want to continue to grow in the future, if possible faster than before."

The Intershop Management Board is confident that the company's growth will continue in the current fiscal year and expects Group revenues to grow moderately in 2018. Management also projects slightly positive EBIT as well as a moderate increase in gross profit and the gross margin.

The full consolidated financial statements will be published in mid-March 2018. All financials in this press release are provisional, pending completion of the statutory audit.

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