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ots Ad hoc-Service: INTERSHOP Communications <DE0006227002> INTERSHOP Announces Preliminary Results for the Fourth Quarter 2000

San Francisco/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 sell-side e-business applications, today
announced the preliminary financial outlook for the fourth quarter of
2000, ending December 31, 2000.
Intershop is reducing revenue and earnings expectations for the
fourth quarter of 2000. Preliminary and unaudited fourth quarter
results now indicate revenues in the range of Euro 28 to Euro 30
million. Net loss for the fourth quarter is expected to be in the
range of Euro 30 to Euro 32 million, which would represent a net loss
per share in the range of Euro 0.36 to Euro 0.38. License revenue for
the fourth quarter is expected to come to approximately Euro 15 to 16
million, revenue from services is forecasted to be in the range from
Euro 13 to 14 million. For the full year 2000, the company expects to
report revenues in the range of Euro 121 to Euro 123 million. The net
loss for fiscal 2000 is expected to be in the range of Euro 37 to
Euro 39 million, reflecting a net loss per share in the range of Euro
0.44 to Euro 0.47.
The current shortfall is primarily related to the global slowdown
in IT purchasing patterns and the lengthening of sales cycles that
have pushed companies' anticipated fourth quarter e-commerce capital
expenditures into 2001. The Company believes that the lower fourth
quarter demand is not related to competitive pressures or the
longer-term prospects for e-business software vendors. INTERSHOP CFO
Wilfried Beeck stated, "We are disappointed with the results for the
fourth quarter of 2000. Several multi-million dollar sales
opportunities that we expected to close in late 2000 have been
postponed until 2001, especially in the U.S. where we continue to
ramp up our sales capabilities. While we've seen continuous growth in
Europe, especially in Germany and the UK, revenues in the US and Asia
suffered significantly from a market wide softening in technology
spending. Although our fourth quarter results are disappointing, we
are pleased with full-year revenue growth of approximately 165
percent over 1999. This revenue growth is much higher than the 100
percent growth we had expected at the beginning of the year 2000."
CEO Stephan Schambach stated, "We believe that companies will
re-launch their e-commerce investments during 2001 and we are well
positioned in this market. Our industry-leading sell-side application
Enfinity highlights the strength of our product offering, having
recently been ranked the number one e-commerce platform by
Forrester-Research. Our world- class customer base of over 3,000
global clients, strong partnerships, as well as our international
presence, remain a strong foundation for long-term growth. Despite
the recent softening in IT spending, our product offering remains
well suited to our clients' needs. Our entire management team is now
focused on improving the effectiveness of our sales organization and
to bring expenses in line with revenue projections."
These statements are based on preliminary financial results. The
Company will hold a conference call (with audio webcast at
http://www.intershop.com) with CFO Wilfried Beeck to discuss
additional details regarding the Company's revised outlook. The
conference call is scheduled for Tuesday, January 2, 2001, 06:00 p.m.
CET/ 12:00 p.m. EST. INTERSHOP will release complete financial
results for the fourth quarter and the full year ended December 31,
2000, by January 31, 2001.
This press 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, 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 
a.shoffner@intershop.com
End
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