The Jena, Germany-based e-commerce software company has been shrinking for some time now. Revenue at the height of the dot-com boom in 2000 was 122.9m euros ($141.6m). It plunged to 68.6m euros ($79m) in 2001, and slumped again to 45.1m euros ($52m) in 2002.
Now it has warned that due to lower-than-expected second-quarter revenue of approximately 6m euros ($7m), it expects fiscal year 2003 revenue to be in the 20m to 25m euro ($23m to $29m) range. It also sees a loss before interest, taxes, depreciation and amortization of 20m euros ($23m), wider than its originally expected loss of 5m euros ($5.8m).
With an available cash balance as of June 30 of only 3m euros ($3.4m), Intershop has axed 445 employees from its worldwide headcount, across most departments except R&D. In addition, the company is continuing to explore alternatives to strengthen its cash position. As of June 30, Intershop expects to record cash, cash equivalents, marketable securities, and restricted cash totaling 10.5m euros ($12m), compared with 16.7m euros ($19.2m) as of March 31.
Intershop will report its complete financial results for the second quarter on July 31, and will also provide further details of the restructuring measures.
Source: Computerwire
