Intershop Communications Announces Third Quarter 2003 Financial Results

License revenue increased 43% sequentially, from Euro 1.5 million in the second quarter of 2003 to Euro 2.2 million in the third quarter of 2003. Service revenue in the third quarter of 2003 totaled Euro 4.3 million, compared to Euro 4.1 million in the second quarter of 2003. Total operational cost excluding restructuring costs in the third quarter of 2003 declined 32% sequentially, to Euro 8.4 million. Intershop incurred restructuring costs of Euro 2.3 million in the third quarter of 2003, as compared to Euro 0.2 million in the second quarter of 2003. Intershop reduced its net loss in the third quarter of 2003 by 43%, from Euro 6.6 million or Euro 0.33 per share in the second quarter of 2003 to Euro 3.8 million or Euro 0.17 per share in the third quarter of 2003. Total cash including cash, cash equivalents, marketable securities, and restricted cash rose modestly from Euro 10.8 million as of June 30, 2003 to Euro 10.9 million as of September 30, 2003. Included in total cash was freely available cash which rose 12% sequentially, from Euro 3.8 million as of June 30, 2003 to Euro 4.2 million as of September 30, 2003. Separately, Intershop announced today its intention to terminate its American Depositary Share (ADS) facility and the listing of its ADSs on the Nasdaq National Market (Nasdaq) within the next six months. Intershop will seek to deregister the shares underlying the ADSs and the ADSs under the Securities Exchange Act of 1934. Intershop expects estimated full-year 2003 total revenue in the range of approximately Euro 23 million to Euro 25 million. Total operational costs including restructuring costs are expected to be approximately Euro 44 million for fiscal year 2003, with fourth quarter 2003 total operational costs further reduced sequentially to about Euro 6.5 million.