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Bull announces revenue for Q1 2006

Slight growth in revenue
Strong growth in orders in Services business in particular in the Telco sector

Paris, April  26, 2006 -

Bull revenues for the first quarter of 2006 were €257.2 million, representing a 0.3% increase compared with €256.6 million for the same period last year.

In a traditionally weak quarter for the Group, these figures demonstrate in particular:

  • The successful relaunch of the services business
  • The very good performance of high growth countries and sectors, particularly Brazil and telecommunications
  • The confirmation of greater seasonal variation in 2006 in favor of the 2nd half of the year.

"During the first quarter we have achieved our revenue objectives, particularly in services and telecommunications which are target activities in our Horizon 2008 strategic plan," commented Didier Lamouche, Bull Chairman and CEO. "Our focus on the seven key offerings defined in our plan as well as the continued growth momentum initiated in 2005 are key levers to enable us to achieve our 2006 objectives."

 

Q1 revenue

 

 

2006

2005

 

 

 

 

 

Products

117. 4

117.0

+ 0.4%

Services

79.6

69.9

+ 14 %

Maintenance

60.2

69.7

- 13.7%

 

 

 

 

Total

257.2

256.6

0.3%

(in millions of euros, in line with IFRS standards, unaudited)

The services business recorded a very satisfactory performance, with revenue growing by 14% and a 22% increase in orders compared with the same period last year. Revenue from the products business, for its part, remained stable.

However, revenue from the maintenance business fell by 13.7%. The turnaround plan combining the enhancement of the offer, sales and business development and operational efficiency will be implemented from the 2nd half 2006 to bring results in 2007.

There was a 3% overall increase in orders taken during Q1 of 2006, with particularly good results in the telecommunications activities (+56%) and the services business (+22%). As a result, by the end of the quarter the Group's backlog stood at €380 million, an increase of 6% compared to 31 March 2005.

Key highlights of Q1 2006

  • Bull confirmed the first phase of the implementation of a new industrial partnership between NEC and its subsidiary Bull Evidian, in IT security. The partnership involves a €10 million investment by NEC in Bull Evidian and the strengthening of Bull's identity and access management (IAM) offerings

  • In line with its "Horizon 2008" strategic plan - aimed at ensuring that the Group is the European leader in information technologies - and as part of the moves to enrich its portfolio of offerings and strengthen its presence in the market for high added value services, Bull has acquired AMG.net, a Polish consulting and integration company specializing in advanced, open IT solutions for the telecoms and finance sectors. This acquisition further consolidates Bull's position in the rapidly growing markets of Eastern and Central Europe. AMG.net employs some 150 consultants and engineers, and recorded revenues of €6 million in 2005.

  • In addition, Bull has today announced that it has acquired HRBC, (Human Resources Business Consulting), a French IT services company specializing in HR information systems, where it offers both consulting and integration services. With revenues of €4 million in 2005 and more than 30 employees, HRBC aims to double its turnover in three years.

  • Bull launched the new NovaScale® 5005 series, the second generation of high-end NovaScale servers. Compact and modular, they offer a high degree of flexibility to enable the successful implementation of complex IT infrastructures. Thanks to their extreme scalability, they also enable significant cost reductions.

Key successes

  • Group Bull has been selected by Barnsley Metropolitan Borough Council in the United-Kingdom, (subject to final terms and conditions), as their partner to develop and manage the Council's IT infrastructure.
    In an agreement worth an initial €60 million it is expected that the value of the services and products delivered under the Agreement will grow to in excess of €100 million over the next ten years. Both parties are negotiating an innovative solution which includes the creation of a joint venture company to manage the Council's IT operations and create new opportunities for employment in the Barnsley area.
    The Barnsley Metropolitan Borough Council and Bull will work closely together to manage the new organisation which will deliver a more cost effective, reliable, secure, responsive and robust ICT infrastructure to support delivery of all of the Council's services.

  • Bull has been chosen by the Belgian Federal Justice Ministry to implement a new information systems infrastructure - including servers, databases and associated services - dedicated to monitoring and tracking the progress of legal cases. The contract, valued at some €8 million for the partners involved, includes designing and implementing the system architecture, as well as operating it in the initial phase.

  • The €7.8 million project with SERPRO (the Brazilian government's IT service) to supply the necessary products and services for the development of a border control solution using biometric passports to be used by the Brazilian federal police force will be operational by the end of June 2006.

Outlook for the 2006 financial year: recap

At the Group's annual results presentation on 22 February 2006, Bull announced that it envisaged a growth rate of between 4% and 4.5% in its revenues for 2006, with EBIT(1) of between €40 million and €45 million, with greater seasonal variation in favor of the second half of the year. The Group's performance in Q1 is in line with this outlook.

About Bull, Architect of an Open World

As one of the leading European IT companies, Bull delivers open, flexible and secure information systems. The group helps public and private sector customers transform their information systems, applying its know-how and expertise in three main areas:

  • Capitalizing on its extensive mainframe experience, Bull designs and produces robust, innovative and open servers, based on industry-standard technologies;

  • Building on its alliances with leading ISVs and long-standing involvement with Open Source, Bull develops and implements flexible and interoperable application infrastructures which give business processes the freedom to evolve;

  • Bringing together recognized expertise in end-to-end IT security, Bull secures data and exchanges that are so critical in preserving customers' business integrity.

Bull has a particularly strong presence in the public, healthcare, finance, telecommunications, manufacturing and defense sectors. Its distribution network and business partners cover more than 100 countries worldwide.

For more information visit: http://www.bull.com

(1) EBIT = Earnings Before Interest and Tax and other gains or losses

Investor Relations:

Patrick Massoni - Tel : 01 30 80 32 36 - patrick.massoni@bull.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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CONTACT

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