> ABOUT BULL > News >

Bull revenues for the third quarter of 2010

Continued growth, at €255.2 million, up 15% (4% organic growth1)
In the first nine months of the year, order intake for the Group's core offerings2 (representing 96% of Bull's activities) grew by 30% and revenues increased by 10% at constant exchange rates. 

Paris, October  28, 2010 -

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 its revenues for the third quarter of 2010.

Key figures for the third quarter of 2010 (unaudited):

 

 

Variation Q3
2010/09
Variation first nine months 2010/09

Orders

+52.9%

+26.8%

Revenues

+15.4%

+8.6%

Revenue change at constant business structure
+6.1%
+0.3%
Revenue change at constant business structure and exchange rates
+4.1%
-1.0%

Philippe Vannier, Bull's Chairman and CEO, commented: "As we anticipated, business activity in the third quarter continued to follow the positive trend identified at the end of the first half of 2010, and this means we are able today to confirm our target EBIT of a minimum of €30 million3 for the full financial year. Given the Group's performance in the first nine months of this year, we can be confident that our portfolio of offerings and skills is highly relevant in today's market."

Q3 business activity: order intake and revenues

Order intake for the third quarter of 2010 grew by 52.9% compared with 2009 and by 41.8% at constant business structure. It should be noted that the quarterly comparison benefits from a favorable baseline effect, resulting from the timing of certain particularly significant contract signings in Q4 2009. This baseline effect has a lesser impact on comparisons relating to order intake for the nine months to the end of September, which demonstrated growth of 26.8% on the basis of current operations, and 15.3% at a constant business structure.
The Group's order book also increased significantly.
Consolidated revenues for Q3 were €255.2 million, representing a 15.4% increase compared with the same period in 2009. At constant business structure4, the increase in revenues was 6.1%. At a constant business structure and constant exchange rates, revenues grew by 4.1%.
In Q3, growth in the Group's 'core' offerings5, which account for 95% of revenues, was 14.9%; organic growth for the same range of offerings was 5.1%.
Over the first nine months of 2010, revenues reached €846.6 million, representing a growth rate of 8.6%. At constant business structure, the increase in revenues was 0.3%. For the Group's core offerings, which accounted for 96% of revenues for the period, growth was 11.8%; organic growth for the same range of offerings was 2.9%.

Order intake and revenues by business segment

Unless otherwise indicated, comparisons are made year-on-year with the published figures for the equivalent quarter.

Hardware and Systems Solutions: continued momentum, driven by growth offerings
Business activity in the Hardware and Systems Solutions segment illustrates the success of the Groups' growth offerings, particularly Extreme Computing. The level of order intake in Q3 of 2009 represents a particularly favourable baseline for comparison, due to the unequal distribution in the signature of large-scale contracts between Q3 and Q4 2009. For this reason, the 41.1% increase in order intake for the first nine months of the year is more representative of the actual pace of growth than the quarterly growth figure (118%).
Revenues from this business segment benefited from the high level of order intake in the earlier part of the year, reaching €68.6 million. They recorded an increase of 23.1% compared with Q3 2009. Over the first nine months of the year, revenues from this business segment grew by 9.6% compared with the same period in 2009, driven in particular by growth offerings. This segment also benefited from the fact that mature offerings (proprietary servers) continued to perform well.

Services and Solutions: slight growth in orders and revenues 
Revenues from the Services and Solutions business were €109.1 million for Q3 2010, up 3.1%. Order intake, for its part, remained stable at -0.1%, with especially dynamic movement in outsourcing activities. The Group continued to perform ahead of the market, with organic growth in revenues of 1.0% since the start of the year, due to its customers' decisions to invest in IT solutions that will help reduce their future expenditure.

Maintenance and PRS: solid performance, thanks to new offerings
Revenues from the Group's Maintenance and PRS business fell slightly, by 3.4%. The success of new offerings, particularly those relating to infrastructure services, helped to limit the erosion of this segment, despite the drop in traditional maintenance activities. For the first nine months of 2010, revenues declined by 3.8% compared with the same period in 2009.

Security and Mission-Critical Systems: sustained growth
The Security and Mission-Critical Systems segment continued to grow in an environment where homeland security requirements are increasingly coming to the fore and budgets are gradually being established. Revenue in this segment grew by more than 11% compared to Q3 2009. Year-to-date revenue growth was over 15% when compared to the same 9 month period of 2009.

Fulfillment and Third-Party Products
Revenues from the reselling of third-party products were €12.2 million, representing 5% of the Group's consolidated revenues; a fall of 7.6%. During the first nine months of the year, this business segment shrank by 33.9%. The Group will continue with this business activity with a view to supporting its customers who are looking for comprehensive offerings, while keeping a close watch on the resources dedicated to this area.

Revenue evolution by business segment (unaudited data):

Third quarter

€ millions

2009

2010

variation

Revenues, of which

221.2

255.2

100 %

 

Services and Solutions

105.9

109.1

42.7 %

+3.1 %

Hardware and Systems Solutions

55.8

68.6

26.9 %

+23.1 %

Maintenance and PRS

46.4

44.8

17.5 %

-3.4 %

Security and Mission-Critical Systems

-

20.5

8.0 %

>+11 %*

Fulfillment and Third-Party Products

13.2

12.2

4.8 %

-7.6 %

* Not included in Bull's business scope in 2009. This information is provided for illustrative purposes only.
Numbers may not add up to 100% due to rounding.


Nine months to 30 September

€ millions

2009

2010

variation

Revenues, of which

779.8

846.5

100 %

 

Services and Solutions

346.9

350.3

41.4 %

+1.0 %

Hardware and Systems Solutions

236.4

259.2

30.6 %

+9.6 %

Maintenance and PRS

141.8

136.4

16.1 %

-3.8 %

Security and Mission-Critical Systems

-

64.5

7.6 %

>+15 %*

Fulfillment and Third-Party Products

54.7

36.2

4.3 %

-33.9 %

* Not included in Bull's business scope in 2009. This information is provided for illustrative purposes only.
Numbers may not add up to 100% due to rounding.

Geographic breakdown of revenues (unaudited data):

Third quarter

€ millions

2009

2010

Variation
vs published data

Organic variation*

France

117.5

140.9

55.2 %

+19.9 %

+3.7 %

Europe excluding France

75.6

75.4

29.6 %

-0.1 %

-0.5 %

Rest of the world

28.3

39.0

15.2 %

+37.8 %

+25.1 %

Total

221.2

255.2

100 %

+15.3 %

+4.1 %

Numbers may not add up to 100% due to rounding.
* A constant business structure and exchange rates
The geographic breakdown of consolidated revenues in Q3 2010 has changed significantly compared with 2009. Revenues provided by Amesys have been mainly accounted for in France and further strengthen the evolution noted in continuing business activities. Slight growth in Western European countries has compensated for the drop experienced in Central Europe. Growth in the rest of the world is mainly due to the very strong recovery in the Group's South American activities, mainly in Brazil, as well as to the strengthening of the Brazilian Real.

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 are unevenly split between the two quarters of the second half of the year.

Outlook

Given the performance from the first nine months of the year, Bull is confirming its target EBIT (see glossary) for 2010, to be a minimum of €30 million3.
###

Glossary:
EBIT: Earnings before interest and taxes, non-operating and non-recurring items and contribution of equity affiliates.
PPA (Purchase Price Allocation): A proportion of the purchase price for the Amesys group is allocated to intangible assets to be amortized as part of EBIT. This amortization is offset in 'EBIT before PPA' in order that the Group's performance can be compared against targets set before the PPA was determined.

About Bull, Architect of an Open WorldTM

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 business processes.
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:

Bull: Peter Campbell: Tel: +33 (0)1 58 04 04 23 - peter.campbell@bull.net

Press relations:

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

Financial calendar

  • 9 December 2010: publication of the multi-year strategic plan
  • 18 February 2011: publication of the full-year financial results for 2010

Appendix

Published quarterly revenues for the financial years 2010 and 2009 (unaudited data):


€ millions

Q1
Q2
Q3
Q4
Full year

2010

Services and Solutions

113.7

127.5

109 .1

-

-

Hardware and Systems
Solutions

84.0

106.6

68.6

-

-

Maintenance and PRS

42.2

49.4

44.8

-

-

Security and Mission-Critical Systems

22.1

21.9

20.5

 

 

Fulfillment and Third-Party Products

11.3

12.6

12.2

-

-

Total

273.2

318.1

255.2

-

-

2009

Services and Solutions

111.1

129.9

105.9

136.3

483.2

Hardware and Systems
Solutions

74.7

105.9

55.8

121.3

357.7

Maintenance and PRS

45.0

50.5

46.4

50.2

192.1

Fulfillment and Third-Party Products

19.0

22.5

13.2

22.2

76.9

Total

249.8

308.8

221.2

330.1

1 109.9

Numbers may not add up to 100% 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.

1 At constant business structure and exchange rates

2 The scope of Bull's 'core' offerings excludes the Fulfillment and Third-Party Products business segment.

3 Target relates to EBIT before PPA (see glossary, p.5).

4 At a constant business structure: the contribution to revenues of companies acquired during 2010 was €20.5 million in Q3 2010 and €64.5 million for the first nine months of 2010.

5 The Group's 'core' offerings exclude the Fulfillment and Third-Party Products business segment.


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


Retour haut de page
Print page.Send page.Share on Facebook.Share on Linkedin.Share on Viadeo.Share on Technorati.Share on Digg.Share on Delicious.Bookmark this page on Google.Share on Windows Live.Share on Twitter.
LEARN MORE
Investors web site >
CONTACT

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