Intershop Communications AG, the German-American provider of e- commerce software, has announced preliminary results that show fourth-quarter revenues up 185% year-over-year at $7.4m and an operating loss of $2.6m, improved from a loss of $4.2m in the third quarter. The company says its strategy of offering a complete line of standard software is paying off, with fourth-quarter license sales accounting for more than 70% of overall revenue. Worldwide 1998 revenues were $20.4m, up from $5.7m a year ago and the company ended the year with a net loss of $17.3m, compared to $8m for the previous year. The bottom line was largely influenced by a 177% increase in operating expenses to $37.1m, from $13.4m in 1997. Intershop described the expenses as mainly start-up investment costs to implement a global infrastructure and points out that revenues for the year increased faster than expenses, eclipsing operating losses for the first time. The company says it expects to report lower losses and continued revenue growth for 1999, reaching the break-even point by year-end 1999 or mid-2000.
