Intershop Reports Record Second Quarter Results.Business Editors/High-Tech Writers
HAMBURG, Germany/SAN FRANCISCO--(BUSINESS WIRE)--Aug. 2, 2000
Intershop Communications (Neuer Markt: ISH ISH In Situ Hybridization
ISH Isolated Systolic Hypertension
ISH Irish Sport Horse
ISH Intermediate System Hello
ISH International Society of Hypnosis
ISH Information Super Highway
ISH International Superhits (Green Day album) ), one of the world's leading providers of e-commerce applications and software solutions, today announced record financial results for the second quarter of 2000, which ended June 30, 2000.
Second quarter revenues were Euro 32.6 million ($31.0 million), an increase of 243 percent from Euro 9.5 million ($9.0 million) reported in the comparable 1999 period. The company reported a Q2 2000 net income of Euro 1.3 million ($1.3 million), compared to a loss of Euro 4.2 million ($4.0 million) in Q2 1999. Intershop announced Euro 0.07 ($0.06) second quarter earnings per share, compared to a loss of Euro 0.21 ($0.20) per share a year ago.
With license revenues up 274 percent to Euro 22.5 million ($21.4 million) from the comparable second quarter 1999 figure of Euro 6.0 million ($5.7 million), Intershop product sales represented the driving force behind this quarter's outstanding performance. The increase was mainly driven by Intershop enfinity, launched in Q4 1999. Intershop enfinity is a complete enterprise sell side e-commerce solution that allows businesses to sell anywhere over the Internet. enfinity sales were up 80 percent compared to Q1 2000. Intershop entered the Asian market in Q4 1999 which has already contributed 8 percent of total revenues.
For the first six months of 2000 revenues grew by 249 percent to Euro 57.5 million ($54.7million), compared to Euro 16.5 million ($15.7 million) for the first half of 1999. Net income for the six months period were up from a loss of Euro 7.7 million ($7.3 million) to a profit of Euro 3.0 million million ($2.8 million). Earnings per share were Euro 0.15 ($0.14), compared to a loss of Euro 0.40 ($0.38) per share a year ago.
Stephan Schambach, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , said, "In Q2, Intershop continued to pursue its strategy of expansion throughout the world and reinforced its position as one of the global leaders in e-commerce software for sell-side applications and solutions. Once again our state-of-the-art product suite enabled hundreds of new and existing enterprise customers to sell their products through the sell direct and sell indirect B2C (Business to Consumer) Refers to a business communicating with or selling to an individual rather than a company. See B2B. and B2B (Business to Business) Refers to one business communicating with or selling to another. See B2B e-commerce, B2C and B2G.
B2B - business to business scenarios. Our products also enabled Application Service Providers (ASPs) to offer hosted e-commerce and e-marketplace applications. Extensibility, flexibility, time-to-market and return-on-investment are the most important criteria for the customers these days and we are in a great position to deliver upon their needs."
"We are very pleased to report record revenues as well as our second profitable quarter," said Wilfried Beeck, CFO See Chief Financial Officer. . "This was not only the tenth consecutive quarter of significant organic revenue growth, but revenue and results were also again higher than our expectations. However, the main highlight of the quarter is the success of Intershop enfinity, which provides the fundamental backbone for enabling e-Commerce."
-- Intershop acquired an impressive list of blue chip customers
including Intel, Unisys, Bertelsmann, H.B. Fuller, Tchibo,
Mannesmann and Terranetworks (Telefonica).
-- Intershop has received significant orders from over 500
customers from 50 different countries, from new customers (38%
of revenues) as well as from existing customers (62% of
revenues). This shows that Intershop has a solid and
well-balanced global customer base.
-- In the course of the second quarter, the number of licenses
sold increased by 30,000 to 300,000, making Intershop by far
the worldwide market leader in terms of the number of
e-commerce licenses sold.
-- Shortly after its launch in Q4 1999, Intershop enfinity, the
first complete XML XML
in full Extensible Markup Language.
Markup language developed to be a simplified and more structural version of SGML. It incorporates features of HTML (e.g., hypertext linking), but is designed to overcome some of HTML's limitations. and Java-based sell-side e-business
application, set an industry benchmark and established a
strong position in the market. In the second quarter, over 50
new Intershop enfinity customers were added to the impressive
list of accounts. Direct enfinity customers include Business
Mart, Bolsa Do Plastico, BOL BOL Bolivia (ISO Country code)
BOL Books Online
BOL Bole (SIL code, Nigeria)
BOL Bill Of Lading
BOL Beginning Of Line
BOL Best Of Luck
BOL Buzz Out Loud
BOL Bruin Online
BOL Beginning Of Life (Bertelsmann), H.B. Fuller,
Tchibo, Unisys, Terranetworks, MyExpressLane.com, MyToys.de,
Sonera and Schott Spezialglass.
-- Due to the relatively short implementation cycle of Intershop
enfinity, several customers have gone live with their
e-commerce application successfully within a few weeks after
the project was initiated. Examples of new marketplaces going
live in the second quarter were Mercateo (B2B marketplace for
e-procurement of SME (1) (Small and Medium-sized Enterprise) See SMB.
(2) (Subject Matter Expert) An individual who is well-versed in the policies and procedures of a particular department or division. ), Efoodmanager (the first pan-European
B2B food marketplace), Goodax, (B2B reverse auction site for
industrial goods industrial goods npl → bienes mpl de producción ) and Gloomedix.com (B2B pan-European
marketplace for medical products). Examples of sell direct and
sell indirect scenarios realized with Intershop enfinity in
the second quarter were Alago, a Dresdner Bank Dresdner Bank AG is one of Germany's largest banking corporations and is based in Frankfurt. History
Dresdner Bank was established on 12 November 1872 through the conversion of financial institution Michael Kaskel. e-procurement
platform for SME customers, H.O.T., Weartical.com, and
-- In the hosted e-commerce market, Intershop was able to
strengthen its leading position with the Intershop 4 product
line. New business acquired in the course of the second
quarter include leading ASPs and CSPs such as Intel, Sparkasse
Leipzig, Telia, Wirtualna Polska Wirtualna Polska (Virtual Poland) is the second-largest Polish web portal (after Onet.pl). It was founded in 1995. It has often been the leader in offering new services on the Polish market. , Computer Partner, Ocean
Internet Services and Vertex Market. The Intershop 4 products
generated 47 percent of total license revenues.
-- To maintain its technological leadership Intershop continued
the ongoing process of product innovation and enhancements.
For Intershop enfinity these improvements included the release
of enfinity 1.1, language packs for German, French and Spanish
and a localization Customizing software and documentation for a particular country. It includes the translation of menus and messages into the native spoken language as well as changes in the user interface to accommodate different alphabets and culture. See internationalization and l10n. toolkit for other languages. Other
improvements include new cartridges for Talisma (eCRM),
CyberSource (payment), ArcadiaOne e-Syndication (content
exchange), SAP R/3 2.0 (ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. ), AnnuncioBright (eCRM) and
v. in·ter·wove , in·ter·wo·ven , inter·weav·ing, inter·weaves
1. To weave together.
2. To blend together; intermix.
v.intr. (content management).
-- The Intershop Marketplace toolkit, a complete toolkit for
partners to build e-marketplaces for their customers, was
released in May 2000. This bundle includes licenses for
Intershop enfinity and ePages, the Marketplace Connector and
the ArcadiaOne Content Exchange Cartridge for enfinity.
-- The Intershop 4 product line also received a number of
enhancements, such as the availability of IS4 for Compaq
Tru64, language packs and localization toolkit, Intershop 4
ePages Plus Pack for Sun Solaris platform, CyberCash Cartridge
for ePages and Cartridge for OpenMarket Transact An earlier e-commerce system for the Web from Open Market that included order capture and secure order fulfillment using credit cards, ecash and other payment systems. It included customer service and subscription administration capabilities as well as an integrated database for reporting 4, Version
5.0. In addition, in July, the new release of Intershop 4.2
-- Because of its open architecture, Intershop products are very
attractive to other software vendors. During the quarter, many
technology partners have developed new solutions and
interfaces with Intershop technologies, including Pironet
(content management solution), Paybox (payment system for
mobile commerce), enfinity cartridge for webmiles, UnitSpace
(3D shop design tool), Novomind (intelligent web agent
technology), SmartShip.com (online shipping information
system), ExtendedSearch (search engine), Esperanto (real time
ERP connector) and Acta Technologies (e-commerce data
Strategic Partners and Channel Development
-- 42 percent of license revenues were directly contributed by
the channel partners.
-- More than 2,700 consultants have been trained during the
second quarter, 2,150 of them on Intershop enfinity
-- Intershop signed several new cooperative agreements with
leading e-commerce implementation companies like Ahead,
Popnet, ISM See ISM band. and Lemon. The existing relationships have been
intensified with leading IT consultants and system integrators
such as PWC, KPMG KPMG Klynveld Peat Marwick Goerdeler (accounting firm)
KPMG Kaiser Permanente Medical Group
KPMG Keiner Prüft Mehr Genau (German)
KPMG Kommen Prüfen Meckern Gehen , EDS (Electronic Data Systems, Plano, TX, www.eds.com) Founded in 1962 by H. Ross Perot (independent candidate for the President of the U.S. in 1992), EDS is the largest outsourcing and data processing services organization in the country. , Integra, Icon Medialab and Pixelpark.
-- On the hardware side, Intershop signed a global strategic
alliance with Hewlett-Packard, which represents a milestone in
Intershop's history. The alliance covers the HP-UX HP's version of Unix that runs on its 9000 family. It is based on SVID and incorporates features from BSD Unix along with several HP innovations.
(operating system) HP-UX - The version of Unix running on Hewlett-Packard workstations. port of
Intershop enfinity supported by both parties contributing
significant resources, joint marketing and sales efforts. Both
parties will assign dedicated sales professionals, in addition
HP has committed to using Intershop technology internally as a
preferred e-commerce solution.
Human Resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. and Organization
-- In the second quarter, Intershop continued its course of
organizational expansion. 94 employees joined the company
during this period. As of the end of June, this brings the
total number of worldwide employees 765 people.
-- In June, Intershop acquired OWiS GmbH in order to strengthen
its personnel in R&D and Professional Services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. . OWiS was built
as a visionary firm focused on new technology and methods in
software development and had grown to approximately 100
people. OWiS is located near Intershop's R&D center in
Jena, Germany. The acquisition effective since July 1st is a
perfect fit with Intershop's resources and brings the
company a team of over 50 key software engineers with
experience in XML and Java as well as a profound expertise in
object-oriented software development.
About Intershop Communications
Intershop Communications is one of the world's fastest growing providers of e-commerce applications software and solutions for the enterprise. Intershop's software offers the quickest time-to-market today with the greatest flexibility for tomorrow. In addition, Intershop e-commerce solutions enable customers to "Sell Anywhere" by supporting the widest range of current and rapidly emerging e-commerce business models.
With more than 300,000 licenses sold worldwide, Intershop customers include some of the world's largest commerce service providers and enterprises such as AltaVista, Concentric, Deutsche Telekom Deutsche Telekom AG (ISIN: DE0005557508, FWB: DTE, NYSE: DT, LSE: DEU, TYO: 9496 ) (abbreviated DTAG) is a telecommunications company headquartered in Bonn, Germany. It is the largest telecommunications company in Germany and in the EU. , Go2Net, Mindspring, Nortel, PSINet, U S West Dex DEX - A cross between Modula-2 and C by W. van Oortmerssen.
Amiga version 1.2. , Bosch, Canon USA, Columbia-Tri Star, Compaq, Electronic Arts, Hewlett-Packard Company, Kraft, Lufthansa, Mercedes Benz Mercedes Benz
expensive automobile and status symbol. [Trademarks: Crowley Trade, 368]
See : Luxury U.S. International, Motorola, Sony and Waterstone's. Founded in 1992, Intershop is headquartered in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden with offices in the U.S., Germany, France, Australia, Canada, Brazil, Sweden, Finland, Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. , Singapore and the United Kingdom and can be found on the World Wide Web at http://www.intershop.com.
This press release contains forward-looking statements forward-looking statement
A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. about expected second quarter revenue and earnings, changing market strategies, demand for electronic commerce software and related services, expanding sales in the company's traditional market and anticipated demand for new offerings. These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially. The risks and uncertainties include the following: business conditions and the general economy; changes in distribution choices and channel partners; competitive factors; sales and marketing execution; shifts in technologies or market demand. Additional information covering factors that could cause results to differ materially from projected statements can be found in INTERSHOP's 1999 annual report and prior quarterly filings.