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Bull: 2009 EBIT objective confirmed in excess of €25 million

  • Core business activities* grew by 0.6% over the first nine months of the year
  • Third-quarter revenues down by 8% (7% at constant currency) reflecting greater seasonal variation than in previous years


Key figures for third quarter of 2009 (unaudited):

- Consolidated revenues of €221.2 million; in line with expectations, revenues decreased by 7.3% at constant exchange rates compared with Q3 2008
- Revenues for the first 9 months of 2009 stood at €779.8 million, representing a slight decline (-1.5%) compared with the same period in 2008; at constant exchange rates, revenues were down by 0.3%
- Refocusing on the Group's core offerings* continues: these offerings which represented 93% of Group revenue over the first 9 months of the year, recorded growth of 0.6% for the period

Outlook: Bull confirms its target EBIT (see glossary) for the year; this was revised in July 2009 to a level "in excess of €25 million".

Paris, October  29, 2009 -

Bull (Euronext Paris: BULL) - expert in open, flexible and secure information systems and one of Europe's leading players in the IT industry - today announces that its revenues for the third quarter of 2009 were €221.2 million, representing a decrease of 8.1% compared with the same period in 2008. The decline in revenues is 7.3% at constant exchange rates.  Revenues of €779.8 million have been recorded for the first nine months of the year, down 1.5% compared with the year-ago period.  At constant exchange rates, revenues declined by 0.3% for the period.

"We have undertaken a refocussing of our business which has put Bull in a favorable position in the current environment. The new solutions that we are offering to our customers are enabling them to cut costs now and put in place their future growth drivers," commented Didier Lamouche, Bull's Chairman and CEO.
"Business activity in the third quarter - marked this year by a more unfavorable seasonal effect - is not representative of the trend we anticipate for the full year. Therefore, the results to the end of September mean that we are able to confirm our objectives for the financial year 2009. The resilience of our core offerings - which have recorded growth in revenues year-to-date, and each outperformed its market - demonstrates that we have made the right strategic decisions," Didier Lamouche continued.


* Bull's core activities include Hardware & Systems Solutions; Maintenance & PRS and Services & Solutions.  In the aggregate they represent 94% of third quarter 2009 revenues.

Third quarter business activity: order intake and revenues by business segment

Comparisons are made with respect to published figures for the prior-year period, except where a recast is specifically indicated.

Hardware & Systems Solutions: a soft quarter; recovery expected in the fourth quarter
Business activity in the Hardware & Systems Solutions segment reflects both a highly adverse seasonal effect, in line with the rest of the IT industry, and the fact that certain private sector customers are delaying some investments in IT. As a result, order intake decreased by 22.1% and revenues were 16.6% lower, after five consecutive quarters of growth. However, a strong pipeline of qualified deals means that a strong recovery in order intake is expected during Q4, as well as a stabilization of revenues compared with the same period in 2008. Over the first nine months of the year, revenues from this business segment grew by 6.1% compared with the same period in 2008, led in particular by the Group's strategic growth offerings. These solutions are positioned in niche areas that are out-performing the overall server market. 'Extreme Computing', which is one of these key growth offerings, continued to record an increase in revenues for Q3.

Services & Solutions: slight decrease in revenues
Revenues from the Services & Solutions segment were €105.9 million for Q3, representing a slight organic decline of 1.8%. Order intake was down by 6.7%, reflecting the difficult economic environment which is affecting telco customers in particular. Nevertheless, the Group continued to record a level of performance ahead of the market, with a 2.4% organic increase in revenues since the start of the year, thanks to the quality of its customer portfolio, particularly in the public sector. 

Maintenance & PRS: a solid business, thanks to new offerings
Revenues from Maintenance & PRS activities proved resilient at €46.4 million, representing a very slight decrease of 0.9%. The success of the Group's new offerings, most notably linked to infrastructure, has limited the erosion of this business despite a decline in traditional maintenance activities. For the first nine months of the year, the erosion of revenues was -3.3% compared with the same period in 2008.

Fulfillment & Third-Party Products
Revenues from Third-Party Products fell sharply by 17.3% to €13.0 million, as a result of the Group's deliberate decision to concentrate its resources on its core offerings. For the first nine months of the year, the overall decline was 22.5% compared with the same period in 2008.


Revenue by business segment (unaudited):


Third quarter

€ millions

2008

2009

variation

Revenues

240.7

221.2

100%

-8.1%

of which Services & Solutions*

111.1

105.9

47.9%

-4.7%

of which Hardware & Systems Solutions

66.9

55.8

25.2%

-16.6%

of which Maintenance & PRS

46.8

46.4

21.0%

-0.9%

of which Fulfillment & Third-Party Products

16.0

13.2

6.0%

-17.3%

*When recast to reflect the sale in 2008 of the Group's Medicaid solutions activities in the US, the decline in revenues is 1.8%.
Numbers may not add up precisely to the total due to rounding.

Geographic breakdown of revenues (unaudited):


Third quarter

€ millions

2008

2009

Variation
vs published figures

Organic variation*

France

126.9

117.5

53%

-7.4%

-6.7%

Western Europe excluding France

61.1

66.5

30%

+8.8%

stable

Eastern and Central Europe

16.4

9.1

4%

-44.7%

-36.6%

Americas

19.8

13.3

6%

-33.2%

-8.9%

Rest of the World

16,6

15.0

7%

-9.6%

-9.4%

Total

240.7

221.2

100%

-8.1%

-7.3%

* at constant exchange rates and structure
The acquisition of s+c in Germany in particular explains the increase in revenues for Western Europe excluding France. The difficulties in the Telecoms business contributed to the decrease in revenues in France. Adverse developments in exchange rates contributed to the decline in business in Eastern Europe. The sale of the Group's Medicaid-related business activities in the USA and the fall in the value of the dollar largely explain the lower revenues from the Americas.

Group financial position

The Group's financial position remains healthy. The cash position reflects seasonal variations, as in previous years. The end of September habitually marks a low point in the cash position, mirroring the trend in revenues, which is unevenly split between the two quarters of the second half of the year.

Outlook

Taking the results for the first nine months of the year into account, Bull is confirming its profitability target for the 2009 financial year, which was raised in July and represents EBIT (see glossary) in excess of €25 million.

Key highlights of the third quarter 2009

In the third quarter of 2009 Bull continued its program of designing and implementing the solutions, services and technologies it has developed to help its customers in the public and private sectors come out stronger from the current economic crisis.
For Bull, computer simulation is key to future innovation in Europe.  Bull further strengthened its position as a supplier of reference in Europe, with the launch of bullxTM, opening the way towards 'Extreme Computing'.

  • Following a European invitation to tender issued to all the major suppliers of High-Performance Computing (HPC) infrastructures, the University of Cologne chose a bullxTM system, from the Group's new family of environmentally-efficient, ultra-dense and ultra high-performance supercomputers launched just before the summer. The bullxTM system, which delivers 100 Teraflops of power and features a highly flexible architecture, supports an extremely wide spectrum of applications. Its ease of use, combined with low electricity consumption and reduced floor-space requirement, were decisive factors in the University's choice.
  • Petrobras has chosen Bull and a bullxTM supercomputer for its research center, CENPES, the largest research center in Latin America, with more than 200 laboratories. This new system which delivers more than 250 Teraflops will be the most powerful system in Latin America at the time of its installation in
    December 2009.

Bull offers its customers increasing competitive solutions to help them tackle the key challenges they face, particularly when it comes to balancing the power/energy consumption equation.

  • Bull and the Joseph Fourier University in France have joined forces to implement an active policy in this area, from initial audits to the implement of low carbon footprint computing facilities. The central aim is to achieve a 50% reduction in the electricity consumed by the university's data centers in the coming three years.
  • Combining flexibility,high-performance and an optimum carbon footprint, the Group's Bio Data CenterTM offering has proved to be an innovative way of helping organizations to fulfill their sustainable development policies.

Bull has once again demonstrated how attractive its service offerings are when it comes to supporting enterprise development projects and responding to the challenges of modernizing public sector information systems at local and national level.

  • French State Financial IT Agency (AIFE) renewed for a further 16 months its contract related to hosting the infrastructure for Chorus, the state's core financial application, which is further proof of the quality of Bull's relationships within the public sector.
  • EDF has also renewed its functional operation and production engineering contract with Bull, covering the SAP applications used in its finance department, for a further three years.
  • The Ambatovy project is the largest mining project ever undertaken in Madagascar (aimed at extracting 60,000 metric tonnes of nickel and 5,600 tonnes of cobalt a year). Numerous supply infrastructures are being built to support the project, including extensions to port facilities, roads and railroads, an electricity generating plant... Ambatovy has turned to Bull to implement the latest-generation Infor Baan LN6 integrated Enterprise Resource Planning (ERP) software, as part of its information system, designed to co-ordinate all its business activities.
  • The Open World Forum, co-founded by Bull, was successfully held for the second time this year, bringing together 1,200 decision-makers and experts to discuss and explore the technological, economic and social impact of Open Source.
  • SERPRO (Serviço Federal de Processamento de Dados), the largest State-owned IT agency in Brazil, has signed a new co-operation agreement with Bull to jointly develop innovative Open Source technologies for on-line public services and e-government.
  • The regional council of Languedoc Roussillon has chosen Bull to help it modernize, rationalize, secure and operate its IT infrastructures, as well as develop and evolve a number of its key applications.
  • Following a comprehensive analysis of the impact of disasters or other incidents on its business activities, the regional council of Calvados chose Bull to renew its information systems. The entire range of resources was reviewed, with a redistribution of systems at the main site, the creation of a new IT site which will eventually host business recovery hardware, and the formalization of a new set of business continuity procedures and resources to be implemented.

As European leader in identity and access management (IAM), Bull Evidian recorded a number of excellent successes

  • Winchester City Council in the UK has implemented Bull Evidian's Enterprise SSO (Single Sign-On) to simplify access to its numerous applications by staff members, while at the same time improving security. Evidian Enterprise SSO eliminates the risks posed by the Council's employees having to memorize many different passwords to access critical applications.
  • RTL Group has also chosen Evidian Enterprise SSO to provide secure user access for its 'holding' company. The 600 employees and journalists at its Luxembourg site will now have easy and completely secure access to their applications, once they have completed the single authentication process provided by the Bull Evidian software.

###

Glossary:
EBIT: Earnings before Interest and Taxes, non-operating and non-recurring items and contribution of equity affiliates.

About Bull, Architect of an Open World TM
Bull is an Information Technology company, dedicated to helping Corporations and Public Sector organizations optimize the architecture, operations and the financial return of their Information Systems and their mission-critical related businesses.

Bull focuses on open and secure systems, and as such is the only European-based company offering expertise in all the key elements of the IT value chain.
For more information visit: http://www.bull.com

Investor relations contact:

Bull: Peter Campbell: Tel: +33 (0)1 30 80 32 36 - peter.campbell@bull.net

Press relations contact:

Bull: Barbara Coumaros: Tel: +33 (0)6 85 52 84 84 - barbara.coumaros@bull.net

Financial calendar

  • 23 November 2009: analyst and investor conference, Paris
  • 11 February 2010: publication of 2009 full-year results

Appendix

Published quarterly revenues for the financial years 2009 and 2008 (unaudited data):

 

€ millions

Q1

Q2

Q3

Q4

Full year

2009

Services & Solutions

111.1

129.9

105.9

-

-

Hardware & Systems
Solutions

74.7

105.9

55.8

-

-

Maintenance & PRS

45.0

50.5

46.4

-

-

Fulfillment & third-party products

19.0

22.5

13.2

-

-

Total

249.8

308.8

221.2

-

-

2008

Services & Solutions

106.6

133.4

111.1

143.2

494.3

Hardware & Systems
Solutions

58.1

97.9

66.9

115.2

338.1

Maintenance & PRS

48.6

51.4

46.8

51.0

197.8

Fulfillment & third-party products

21.2

33.4

16.0

32.2

102.7

Total

234.5

316.1

240.7

341.5

1,132.8

Numbers may not add up precisely to the total due to rounding.

Disclaimer
This press release includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause expected results to differ.
Although Bull believes that its expectations and the information in this press release were based upon reasonable assumptions at the time when they were made, it can give no assurance that those expectations will be achieved or that the expected results will be as set out in this Press release. Neither Bull nor any other company within the Bull Group is making any representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the information in the Press release, and neither Bull, any other company within the Bull Group nor any of their directors, officers or employees will have any liability to you or any other persons resulting from your use of the information in the Press release.

About Bull, an Atos company

 

Bull is the trusted partner for enterprise data. The Group, which is firmly established in the Cloud and in Big Data, integrates and manages high-performance systems and end-to-end security solutions. Bull's offerings enable its customers to process all the data at their disposal, creating new types of demand. Bull converts data into value for organisations in a completely secure manner.

Bull currently employs around 9,200 people across more than 50 countries, with over 700 staff totally focused on R&D. In 2013, Bull recorded revenues of €1.3 billion.

For more information:
http://www.bull.com  /  http://www.facebook.com/BullGroup  /  http://twitter.com/bull_com

 

About Atos

Atos SE (Societas Europaea) is a leader in digital services with 2013 pro forma annual revenue of €10 billion and 86,000 employees in 66 countries. Serving a global client base, the Group provides Consulting & Systems Integration services, Managed Services & BPO, Cloud operations, Big Data & Security solutions, as well as transactional services through Worldline, the European leader in the payments and transactional services industry. With its deep technology expertise and industry knowledge, the Group works with clients across different business sectors: Defence, Health, Manufacturing, Media & Utilities, Public Sector, Retail, Telecommunications and Transportation.

Atos is focused on business technology that powers progress and helps organizations to create their firm of the future. The Group is the Worldwide Information Technology Partner for the Olympic & Paralympic Games and is listed on the Euronext Paris market. Atos operates under the brands Atos, Atos Consulting, Atos Worldgrid, Bull, Canopy, and Worldline.

For more information, visit: atos.net



Contact
Bull
Aurélie Negro
5 Bd Gallieni - 92445 Issy Les moulineaux Cedex - France
Phone: +33 1 58 04 05 02
E-mail: aurelie.negro@bull.net


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Aurélie Negro
+33 1 58 04 05 02
aurelie.negro@bull.net