Intershop Communications : reports initial success for cloud segment

- Cloud orders worth EUR 1.5 million received in Q1
- Revenues reclassified into software and cloud segment as well as service segment
- EBIT still negative due to new cloud strategy
- Full-year forecast of slight revenue and EBIT growth confirmed

Jena, 25 April 2018 - Intershop Communications AG (ISIN: DE000A0EPUH1), a leading independent provider of innovative solutions for omni-channel commerce, continued its transformation towards the cloud business in the first quarter. In accordance with its previously announced "Cloud first" strategy, Intershop restructured its revenues as of the beginning of the financial year. Revenues are now divided into "software and cloud revenues" as well as "service revenues". As of the financial year 2018, Intershop also reports incoming orders for the cloud segment, which comprise contractually agreed revenues spread over the contractual term.

In the first three months of the year, Intershop generated revenues of EUR 8.1 million (previous year: EUR 9.1 million). Incoming orders received for the cloud segment in the first quarter, which will lead to recurring revenues in the following quarters, amounted to EUR 1.5 million (previous year: EUR 0.2 million). First-quarter revenues break down into approx. EUR 3.9 million for the software and cloud segment (-22%) and approx. EUR 4.2 million for the service segment (+2%). The fact that "software and cloud revenues" are lower than in the previous year is attributable to reduced software revenues (licensing and maintenance revenues), whereas cloud revenues increased by 8%. Accounting for 74% of total revenues, Europe remained the most important market in the first quarter. The US market and the Asia-Pacific region accounted for 12% and 14%, respectively.

"While the new cloud strategy will temporarily lead to fluctuations in revenues and earnings, as seen in the first quarter of 2018, it will make our business steadier and more stable in the long term," said Dr. Jochen Wiechen, CEO of Intershop Communications. "We are working flat out to accelerate the expansion of our cloud segment, which we expect to achieve very attractive growth rates in the medium term. The new CaaS (Commerce-as-a-Service) offerings launched for this purpose in March have already helped us win the first customers."

At 43%, the gross margin in the first quarter was down by 6 percentage points on the previous year. Earnings before interest and taxes (EBIT) stood at EUR -0.7 million at the three-month stage (previous year: EUR 0.2 million). The result after taxes for the period amounted to EUR -0.8 million (previous year: EUR 0.1 million). Thanks to the good start to the cloud business, Intershop remains optimistic for the full year 2018 and has confirmed its forecast of moderately higher consolidated revenues and slightly positive EBIT.

Intershop's financial and net assets position remains solid. In the first three months of the year, operating cash flow before taxes amounted to EUR 0.3 million (previous year: EUR 2.9 million). Compared to the end of 2017, cash and cash equivalents were down by EUR 0.9 million to EUR 8.1 million. At 60%, the equity ratio stayed at a comfortable level.

The interim report on the first three months is available for download 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