Ad-hoc | 30 October 2002 07:04

INTERSHOP Communications english

Intershop Communications Reports Third Quarter 2002 Financial Results Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Intershop Communications Reports Third Quarter 2002 Financial Results In Challenging Market Environment, Intershop Further Reduces Costs and Net Cash Usage Enfinity MultiSite Sales Promising Third quarter 2002 revenue totaled Euro 8.9 million, compared with Euro 12.1 million in the second quarter of 2002. Revenues for the third quarter reflected ongoing weakness in the global economy, restrained information technology (IT) spending patterns and seasonal effects in the European market. As a result of these factors, a number of customer orders were postponed, leading to reduced third quarter 2002 license revenue of Euro 3.5 million, as compared to second quarter 2002 license revenue of Euro 6.3 million. Slightly exceeding management guidance given on July 31, 2002, Intershop reduced total operational costs by 8% sequentially, from Euro 18.0 million in the second quarter of 2002 to Euro 16.7 million in the third quarter of 2002. Intershop’s third quarter 2002 net loss totaled Euro 7.5 million (net loss of Euro 0.08 per share), compared to a net loss of Euro 5.8 million (net loss of Euro 0.06 per share) in the second quarter of 2002. In line with management guidance, net cash usage was reduced sequentially by 42% to Euro 5.7 million in the third quarter of 2002. As of September 30, 2002, liquidity including cash, cash equivalents, marketable securities, and restricted cash totaled Euro 20.4 million. Based on year-end corporate IT budget utilizations and postponed customer orders from the third quarter of 2002, Intershop expects total revenue in the fourth quarter of 2002 will be significantly higher than in the third quarter of 2002. Operational costs (cost of revenue and operating expenses) in the fourth quarter of 2002 are forecasted to be flat with or below operational costs (excluding restructuring cost) in the third quarter of 2002. Intershop maintains its goal to reach quarterly EBITDA break-even in the fourth quarter of 2002. Due to the difficult market environment, however, Intershop does not exclude the possibility of incurring an EBITDA-loss of up to Euro 3 million in the fourth quarter of 2002. Net cash usage for the fourth quarter of 2002 is anticipated to be below the level exhibited in the third quarter of 2002. end of ad-hoc-announcement (c)DGAP 30.10.2002 Issuer’s information/explanatory remarks concerning this ad-hoc-announcement: The full press release relating to this ad hoc disclosure can be found at http://www.intershop.com . Special Stockholders’ Meeting Intershop will hold a special stockholders’ meeting on October 30, 2002, commencing at 11:00 a.m. Central European Time. At the meeting, Intershop stockholders will, among other things, be asked to approve a reverse stock split, exchanging five existing Intershop common bearer shares for one new Intershop common bearer share. About Intershop Intershop Communications AG (Neuer Markt: ISH; Nasdaq: ISHP) is a leading provider of e-commerce solutions for enterprises who want to automate marketing, procurement, and sales using Internet technology. The Intershop Enfinity commerce platform, combined with proven, flexible industry and cross-industry solutions, enables companies to manage multiple business units from a single commerce platform, optimize their business relationships, improve business efficiencies and cut costs to increase profit margins. By streamlining business processes, companies get a higher return on investment (ROI) at a lower total cost of ownership (TCO), increasing the lifetime value of customers and partners. Intershop has more than 2,000 customers worldwide in retail, high-tech and manufacturing, media, telecommunications and financial services. Customers including Bertelsmann, Motorola, Sonera, Ericsson, Otto and Bosch have selected Intershop’s Enfinity as the foundation for their global e-commerce strategy. More information about Intershop can be found on the Web at http://www.intershop.com . Investor Relations: Press: Klaus F. Gruendel Heiner Schaumann T: +49-40-3641-50-1000 T: +49-3641-50-1000 F: +49-40-3641-50-1002 F: +49-3641-50-1002 k.gruendel@intershop.com h.schaumann@intershop.com This ad hoc release may contain forward-looking statements regarding future events or the future financial and operational performance of Intershop. Actual events or performance may differ materially from those contained or implied in such forward-looking statements. Risks and uncertainties that could lead to such difference could include, among other things: Intershop’s limited operating history, the unpredictability of future revenues and expenses and potential fluctuations in revenues and operating results, consumer trends, the level of competition, seasonality, risks related to electronic security, possible governmental regulation, and general economic conditions. Additional information regarding factors that potentially could affect Intershop’s business, financial condition and operating results is included in Intershop’s filings with the Securities and Exchange Commission, including the Company’s Form 20-F dated May 9, 2002. ——————————————————————————– WKN: 622700; ISIN: DE0006227002; Index: NEMAX 50 Listed: Neuer Markt in Frankfurt; Freiverkehr in Berlin, Bremen, Düsseldorf, Hamburg, Hannover, München, Stuttgart 300704 Okt 02