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INTERSHOP Communications AG

ots Ad hoc-Service: INTERSHOP Communications <DE0006227002>

Hamburg (ots Ad hoc-Service) -

Ad hoc-announcement edited and sent by DGAP. The sender is solely
responsible for the contents of this announcement.
Intershop Communications AG (NASDAQ: ISHP; Neuer Markt: ISH), a
leading provider of e-business software applications, today reported
that revenues for the first quarter of 2001, ending March 31, 2001
are expected to be in the range of Euro 18 to 20 million. Intershop
has previously expected revenue for the first quarter of 2001 to be
flat compared to the fourth quarter of 2000 of Euro 30.2 million. The
ordinary operating result is expected to be stable against the fourth
quarter 2000 loss of Euro 33.4 million due to the cost saving
measures. Looking ahead, Intershop expects to complete its
restructuring program successfully in the second quarter resulting in
increased revenues and reduced operating costs.
Issuer's information/explanation remarks concerning this ad hoc
announcement:
Stephan Schambach, CEO of Intershop stated: "As evidenced across
the high-tech and IT industries, our business continues to be
impacted by the economic slowdown and longer sales cycles,
particularly in the U.S. and in Asia. The situation in North America
remains difficult. We are planning to address this with new strategic
sales partnerships and a focus on specific market segments, where
Intershop has a strong technology advantage."
Intershop COO Wilfried Beeck added, "Intershop is currently in the
middle of executing a restructuring program resulting in major
strategy changes. The first two quarters of 2001 are turnaround
quarters for Intershop. We are now starting to see improvements on
the cost side, the program as a whole is expected to start taking
effect in the second quarter of 2001. New initiatives to increase
license sales such as Intershop's new partner program, launched in
February, as well as new strategic sales partnerships are the right
measures but will take some time to become effective. In the first
quarter, we have transitioned our business towards indirect sales
which results in a short term slowdown of new direct business, but
creates additional long-term revenue opportunities."
"Our industry leading technology and our strong position in Europe
continue to be our strengths. The new solutions that we are
presenting at CeBIT have been received extremely well and we expect
that these products will have a major impact on our revenues in the
second half of the year. The solutions for the automotive, high-tech,
engineering, retail and consumer goods markets build on our strategy
to foster the development of key market verticals with customized
applications. Extending our product suite is essential to ensuring
that Intershop overcomes this current economic slowdown. We believe
that the worst is behind us now and we are confident to return to
profitability in the course of the year. The entire management team
remains focused on taking appropriate and immediate actions to
achieve that goal", continued Mr. Beeck.
Intershop will report complete financial results for the first
quarter of 2001 on May 2, 2001.
This press release contains forward-looking statements regarding
Intershop's first and second quarter 2001 revenues, costs, and
financial performance, as well as a discussion of the company's
strategic objectives. 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 limited visibility of revenues and expenses,
potential fluctuations in revenues and operating results, the effect
of the economic slowdown and its potential worsening, costumer
trends, the level of competition, seasonality, the timing and success
of international expansion efforts, risks related to electronic
security, possible governmental regulation, and the ability to manage
a rapidly growing business. 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 in the
prospectus dated September 28, 2000, relating to Intershop's public
offering of common stock.
European Investor Relations Contact: Dr. John Lange Phone
+49-40-23709-128/-137  Investorrelations@intershop.de
U.S. Investor Relations Contact: Amy Shoffner Phone
+1-415-844-1555  a.shoffner@intershop.com
End
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Original content of: INTERSHOP Communications AG, transmitted by news aktuell

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