Intershop results cause shares plunge

NEWS Despite revenues being above company expectations, at E35.2m (£20.4m), the markets were disappointed by the company's loss of E11m (£6.4m)- attributed to two acquisitions and large marketing costs resulting from the company's push into the US markets. The company's management team preferred to draw attention to its victories, pointing out a 235 per cent increase on revenues from the same quarter in 1999. Speaking from Intershop's user conference in New York, CFO, Wilfried Beeck said: "There has been a great deal of consolidation in the B2B market as potential revenues have fallen. Looking at our consistent growth, we are definitely emerging as the market leader." However, only half an hour after the announcement, Intershop shares had fallen by 20.79 per cent on the German Neuer Markt and 16.55 per cent on Nasdaq. Commenting on the results, Daren Siddall, ebusiness analyst with the Gartner Group, was still optimistic about the fortunes of the company. He said: "When you're expanding a company on a global scale, it's inevitable losses will increase, but the results have shown Intershop is emerging as a significant player in the ecommerce software market. "The alliance with CommerceOne is a strategic advantage that will give it a competitive edge over rivals like Broadvision and ATG in the US."