PARIS, April 25 /PRNewswire-FirstCall/ -- - Revenue Growth at Constant Structure - Confirmation of Sustained Momentum in Services and Solutions - Continuation of Recovery in Maintenance Financial highlights of first quarter 2007, compared with 2006 recast(1) for the sale of the Italian operations in December 2006:
PARIS, April 25 /PRNewswire-FirstCall/ — – Revenue Growth at Constant Structure – Confirmation of Sustained Momentum in Services and Solutions – Continuation of Recovery in Maintenance
Financial highlights of first quarter 2007, compared with 2006 recast(1) for the sale of the Italian operations in December 2006:
– Revenue of EUR247.1 million grew 2.4% (1) year over year
– Order intake increased 19% (1)
– Service activities progressed by 28.5% (1) in order intake and 17.7% (1) in revenue
– Maintenance activities' revenue grew by 3.8% (1), that of products declined by 7.9% (1)
Reiteration of outlook: Bull's objective for EBIT (see glossary) in 2007 is in the range EUR20 million to EUR24 million. The objective for the second semester is higher than the first semester.
Bull (Euronext Paris: BUL.PA) announces that its revenue for the first quarter of 2007 was EUR247.1 million, a decline of 3.9% compared with revenue of EUR257.2 million published for the first quarter of 2006. Nevertheless, after adjusting for the Italian operations sold in December 2006, revenue grew by 2.4%.
"Our revenue growth at constant structure in the first quarter of 2007 reflects the success of the operational measures we initiated in the second half of 2006 as the progress in the maintenance domain shows in particular" underlined Didier Lamouche, Chairman and CEO of Bull. "Our teams are determined to pursue the transformation of the Group and to lead Bull on the course of profitable growth."
(1) 2006 revenue and orders are recast to take into account the sale of Bull's Italian activities in December 2006.
First quarter revenue breaks down as follows (unaudited): 1st quarter EUR millions 2006 2006 2007 variation as published recast (1) as recast(1) published Revenue 257.2 241.4 247.1 100% -3.9% 2.4% o/w products 117.4 114.1 105.1 42.5% -10.4% -7.9% o/w services 79.7 70.8 83.3 33.7% 4.6% 17.7% o/w maintenanc 60.2 56.6 58.7 23.8% -2.5% 3.8%
(1) 2006 revenues are recast to take into account the sale of Bull's Italian activities in December 2006.
Unaudited figures. The following comparisons are made against the same period of 2006 adjusted for the sale of Italian activities in December 2006.
Order intake increased by 19%
First quarter business activity was vigorous, particularly in the United States, where a $44 million contract was signed with the State of California, in Latin America and in Germany where orders grew by 64% and 35% respectively.
Service and solutions activities progressed by 28.5% for order intake and 17.7% for revenue
Order intake was particularly strong (+28.5%) in the service and solutions activity, confirming the trend seen in previous semesters. The strategy aiming to increase services as a proportion of overall Group revenues continues to be executed: revenue from the service activities progressed by 17.7%, registering the eighth consecutive quarter of growth.
Maintenance activity revenue grew by 3.8%, that of products declined by 7.9%
Maintenance activities showed revenue growth for the first time, confirming the value of the actions initiated in 2006: the new worldwide organisation and differentiating offers. Nevertheless, the first quarter of 2006 provides a favorable base for comparison; Bull anticipates that revenue for the full year 2007 will remain slightly below the 2006 level, but that the decline will be improved compared to the -9.6% reduction registered in 2006.
Product revenue declined 7.9% in line with the trend seen during the fourth quarter of 2006. The reversal of this trend over the coming quarters constitutes a key priority for Bull, driven by a renewed offer and the development of integrated solutions.
The geographic split of revenues was as follows: First quarter revenue 2006(1) 2007 Variation EUR millions France 123.8 122.0 -1.5% Western Europe excl. France 64.3 68.2 6.1% ECE 12.1 14.0 15.7% USA 13.5 13.3 -1.5% South America 11.6 10.8 -6.9% Rest of the World 16.0 18.9 18.1% Total 241.4 247.1 2.4% (1) 2006 – Revenues adjusted for disposal of Italian activities 2007 outlook
The Group confirms the outlook announced in February 2007: the objective for EBIT (see glossary) in 2007 is in the range EUR20 million to EUR24 million with the objective for the second semester being higher than the first semester. Key factors contributing to the achievement of this target will be to continue to reduce the rate of decline in the Maintenance business, to improve the margin in Services, and to grow sales in the open servers market.
Highlights of the first quarter 2007
Bull launched its 7i program: seven key initiatives designed to help businesses reap the benefits of an open world. Combining the best in services and technologies, the 7i program aims to help businesses turn their information systems into drivers for creating value in a connected world, by facilitating growth, competitiveness and sovereignty.
In the services arena, Bull – the nation's leading Business Intelligence solution provider in the public sector Health and Human Services space – has won a four-year, $44 million contract to provide the hardware, software, services, and consulting expertise for the State of California. The system will be used to help manage Medi-Cal, the California Medicaid system, the largest state plan in the U.S. in terms of people covered (6.6 million).
Bull consolidated its commitment to Open Source with:
– A partnership with SpikeSource to accelerate adoption of open source applications in the enterprise market.
– Bull also announced NovaForge(TM), a secure, collaborative application development platform. NovaForge is a comprehensive group of innovative services and tools based around Open Source components that are extensively used by Bull's R&D teams.
In the servers arena, Bull has chosen High Performance Computing (HPC) as one of the development priorities. Two major announcements reflect this strategy:
– Bull, the French Atomic Energy Authority (CEA), German national HPC center HLRS, Intel and Quadrics have announced the creation of the TALOS (Technologies for Advanced Large scale Open Supercomputing) alliance, aimed at accelerating the development of high-performance computing solutions in Europe.
The TALOS alliance lines up with current development efforts in Europe aiming to provide the region with top level HPC technologies, particularly against the backdrop of the Seventh Framework Program (FP7) launched by the European Commission in 2007.
– Bull and Miracle Machines have entered into an OEM relationship to jointly address the High-Performance Computing (HPC) market in Singapore.
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)
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 60 countries worldwide.
For more information visit: http://www.bull.com
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.