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Bull: 2009 EBIT Objective Confirmed in Excess of EUR25 million

October 29, 2009
    PARIS, October 29 /PRNewswire-FirstCall/ --

    - Core Business Activities[1] 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 EUR221.2 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 EUR779.8
      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 offerings1 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 EUR25 million“.

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 EUR221.2
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
EUR779.8 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.

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 EUR105.9 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 EUR46.4
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 EUR13.0
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
                EUR 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
           EUR millions         2008     2009     Variation    Organic
                                                  vs published variation*
                                                    figures
    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
EUR25 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 bullx(TM), 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 bullx(TM) system, from the Group's new
      family of environmentally-efficient, ultra-dense and ultra high-
      performance supercomputers launched just before the summer. The
      bullx(TM) 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 bullx(TM) 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 Groups' Bio Data Center(TM) 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 (Servico 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.

    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):

                             Q1     Q2     Q3     Q4   Full year

         EUR millions
    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.
———————————

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

    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

SOURCE Bull


Source: newswire



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