Bull Confirms the Strength of its Business Model in the First Quarter of 2009

April 30, 2009
    PARIS, April 30 /PRNewswire-FirstCall/ --

    - Growth in Order Intake (23.9%) and Revenue (6.5%)

    - Confirmation of the EBIT Objective for 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 its results for the first quarter of 2009.

    Key figures for the first quarter of 2009[1]

    - Consolidated revenue of EUR249.8 million[2] showed an increase of 6.5%
      thanks notably to the growth of new offerings such as High-Performance
      Computing (HPC).

    - Hardware and Systems Solutions benefited from the dynamism of the
      Group's HPC and open server activities: order intake grew by 33% and
      revenue by 28.7%

    - Revenue from Services and Solutions grew by 4.2%, with order intake up

Didier Lamouche, Bull’s Chairman and CEO commented: “The growth in our
revenue and the dynamism shown by Bull during the first quarter of 2009 once
again confirms that the Group has chosen to pursue the right strategy. This
performance is essentially due to the success of our new strategic offerings,
our growth engines, and our sector positioning, which is helping us resist.

We continue to focus on growing these offerings and on executing our
action plans to accelerate the Group’s transformation and so come through the
current economic crisis even stronger. Finally, we can confirm our target
EBIT for the year of over EUR20 million, despite the pressure that we are
experiencing on our margins as a result of the economic environment.”

Business activities in the first quarter of 2009: analysis by segment of
order intake and revenue

Unless otherwise indicated, comparisons are made with published data from
the equivalent year-ago period.

Hardware & Systems Solutions

The growth of Bull’s High-Performance Computing (HPC) offering, the
dynamism of the open servers solutions and, to a lesser extent, the new
secure storage solutions integration offerings explain the extremely good
performance of this business segment, both in terms of order intake (up by
33%) and revenue (EUR74.7 million; up by 28.7%).

Services and Solutions

The performance of the Services & Solutions activities in the first
quarter once again confirmed our ability to grow at a faster rate than the
market as a whole, particularly in France and in the telecoms sector. Order
intake grew strongly (by 24.7%) and revenue increased by 4.2% to EUR111.1


Revenue from maintenance activities of EUR45 million represented a fall
of 7.5%, as a result of a number of support contracts for proprietary servers
coming to an end, as anticipated. Target revenue from the Maintenance
business for the 2009 financial year remains in line with forecasts, i.e.
slightly lower than in 2008.

Fulfillment & Third-Party Products

The fall in revenue from Fulfillment & Third-Party Products (EUR19
, representing a fall of 10.4%) continues to reflect the Group’s
deliberate refocusing on selling Bull’s own, higher added-value offerings.
Bull will continue to be highly selective when it comes to deciding which
orders to take in this area of its business.

Group financial position

The Group’s financial position remains healthy. The cash position
demonstrates a similar pattern to previous years. The month of March
generally marks a low-point in terms of cash balance in correlation with the
level of activity.

Key highlights of the first quarter of 2009

Digital technologies have a central role to play in helping businesses
emerge even stronger from the current economic crisis. These technologies
support the two key types of actions being taken by organizations: defensive
actions designed to deliver immediate cost reductions, and proactive measures
focused on innovation, the essential driver to escape from the crisis.

To enable its customers to cut costs, Bull offers a range of flexible
outsourcing and Green Computing solutions, targeting energy efficiency and
Data Center optimization.

– Outsourcing: High performance Data Centers

In the area of outsourcing, which represents a growing part of Bull’s
revenue, the Group has invested heavily for many years in the creation of
five high-performance Data Centers worldwide (three in France, one in the UK
and one in the USA), which offer remote hosting and operational solutions.

And in Belgium, for example, Bull has provided the infrastructure, the
hosting, the network and the secure access to Coreso, the first technical
coordination center to be shared by several electricity transmission system
operators (most notably, RTE and Elia).

    - The Bio Data Center(TM): an innovative approach to managing Data Center
      resources more effectively

Managing and controlling the energy consumption of IT infrastructures
will be the biggest challenge in years to come. Bull has anticipated this,
and positioned itself over the course of a number of years to offer its
customers solutions that are now proving to be especially relevant,
particularly in the current economic situation.

Bull has signed a partnership agreement with GlassHouse Technologies, a
leading American IT infrastructure consulting and services firm, to jointly
offer storage consultancy services across the whole of Europe. These new
auditing services will enable organizations to identify and quantify the
savings and benefits they can achieve by using storage optimization

To encourage and support innovation, Bull has three relevant offerings:
High-Performance Computing (HPC), value-added services and Open Source.

    - High-Performance Computing: Bull strengthens its position as a
      reference in Europe

Computer simulation offers companies the capacity to develop new products
extremely rapidly, with the immediate benefit of improving time-to-market.

Bull’s dynamic growth in HPC continued during the quarter of 2009, with
the aim of achieving revenue of EUR100 million by the end of 2009. The Julich
Research Center (Forschungzentrum Julich) in Germany chose Bull to provide it
with a second supercomputer. The new 100 Teraflops machine is destined to
host applications from the European Union’s Fusion project. Along with the
Bull JuRoPA supercomputer ordered in 2008, it will constitute a computing
platform capable of delivering over 300 Teraflops of power; placing it among
the leading group of Europe’s most powerful supercomputers.

– Value-added services: Bull confirms its commercial growth

In storage infrastructure integration, Bull has carried out a project for
Maif, the French mutual insurer and for Dassault Aviation.

The Moroccan Post Office has embarked, with Bull’s help, on a total
overhaul of the country’s automatic mail address recognition system using
leading-edge digital technologies. To deliver the project, Bull is leading a
project group including its subsidiary AddressVision Inc. (AVI) – which
specializes in automated postal solutions that are already used in the
sorting of over 50% of the world’s mail – and National Presort Inc. (NPI), a
major American manufacturer of mail sorting machines. The project also makes
use of the recognition engines developed by Prime Vision B.V.

OPT, the Post and Telecommunications Office of New Caledonia (the French
overseas territory), has chosen Bull to help it launch innovative messaging
and ‘Multi-Play’ services. Bull will be integrating a Comptel mediation,
provisioning and value-added services system, enabling it to offer
pre-payment for fixed line, voice messaging on fixed line and ‘Multi-Play’

Also in Q1, Bull Evidian continued its commercial expansion not only in
France but also internationally, across all sectors of the economy, but most
notably in banking. In Germany, for example, GAD eG, the Data Center and
services provider for 500 branch offices in the Raffeisen Group, chose Bull
Evidian to manage access for its 50,000-strong user population.

– Open Source, actively contributing to increased competitiveness

Bull has launched a series of 20 off-the-shelf solutions designed to
enhance businesses’ competitiveness in times of economic crisis. For each of
these mature, proven solutions Bull offers turnkey support so customers can
benefit from the same quality of service available with comparable
proprietary software, for an average 60% lower total cost of ownership (TCO).

Outlook for 2009

The Group confirms its outlook published in February 2009, for target
EBIT (see glossary) in excess of EUR20 million for the 2009 financial year.


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

About Bull

Bull is an Information Technology company, dedicated to helping
Corporations and Public Sector organizations optimize the architecture,
operations and 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

    Financial calendar

    - 13 May 2009: Annual General Meeting
    - 30 July 2009: Half-year results 2009
    - 30 October 2009: Third quarter revenue 2009

    Revenue evolution by business segment (unaudited data):

                                First quarter
                EUR millions                2008       2009     Variation

    Revenue                                234.5   249.8    100%     +6.5%
    Services & Solutions                   106.6   111.1   44.5%     +4.2%
    Hardware & Systems Solutions            58.1    74.7   29.9%    +28.7%
    Fulfillment and Third-Party Products    21.2    19.0    7.6%    -10.4%
    Maintenance                             48.6    45.0   18.0%     -7.5%

    Data may not sum to the total due to rounding.

    Geographic breakdown of revenue (unaudited data):

                    First quarter
          EUR millions        2008  2009  Variation

    France                   127.0 131.7       +3.7%
    Europe excluding France   71.2  86.2      +21.1%
    Rest of the world         36.4  31.9      -12.4%
    Total                    234.5 249.8       +6.5%

    Data may not sum to the total due to rounding.

Revenue from France, the Group’s largest market, grew by 3.7%. The strong
growth of business activities in Europe excluding France is explain on the
one hand by organic growth and on the other by external growth in Germany and
Benelux. The fall in revenue from the Rest of the World is due principally to
the sale of the Group’s Medicaid-related business in the USA, which took
place in Q4 2008.


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] Unaudited figures. Comparisons are made with published data from the
        equivalent year-ago period.

    [2] Companies acquired during 2008 contributed EUR8.4 million to revenue in
        the first quarter of 2009; activities sold during 2008 contributed
        EUR8.8 million revenue in the first quarter of 2008.

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

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


Source: newswire

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