Bull announces continued revenue growth and confirms second half 2005 outlook
Paris, November 10, 2005 -
Bull's revenue for the third quarter 2005 stood at 256.2 million euros compared to 254.3 million euros for the same period last year, an increase of 0.7% confirming:
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The upturn, already observed in the first half of 2005, in what is traditionally Bull's quietest quarter of the year.
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The second quarter in a row of revenue growth.
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Our expectations for the remainder of 2005. Revenue growth of 6 to 7% is expected in the fourth quarter 2005 resulting in an expected growth in revenue of 3 to 4% for the second half of 2005.
"During the third quarter, we continued to deploy and execute our 2005 action plan and were able to post revenue growth in a traditionally low activity quarter for Bull. The outlook for the second half of the year is further proof of the renewed momentum within the Company. The fact we are ahead of our turnaround plan will enable us to accelerate the repositioning of the company on the growth segments we have selected." said Didier Lamouche, Chairman and Chief Executive Officer of Bull.
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3 rd quarter revenue |
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Year-to-date revenue |
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2005 |
2004 |
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2005 |
2004 |
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Products |
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118 900 |
112 800 |
5,4% |
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393 900 |
362 800 |
8,6% |
Services |
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70 700 |
65 600 |
7,8% |
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227 300 |
223 100 |
1,9% |
Maintenance |
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66 600 |
75 900 |
-12,3% |
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206 800 |
234 100 |
-11,7% |
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Total |
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256 200 |
254 300 |
0,7% |
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828 000 |
820 000 |
1,0% |
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(in thousands euros, IFRS standards, unaudited)
The third quarter performance demonstrated a continuing positive trend in the products business, though of less importance than during the first half of the year, confirming our expectations for the full year.
In addition to positive market trends, the action plan undertaken during the 1st half of the year is already delivering positive results on Bull's activities especially in the services business worldwide. The maintenance business continues to be impacted by a difficult commercial environment, though its evolution remains in line with forecasts.
Orders intake was up by 6.5% in the 3rd quarter 2005 year-on-year with growth both in the Products (3%) and Services (12%) activities.
For the 2nd half of 2005, Bull confirms its outlook for revenue with the increase expected to be in the range of 3 to 4%. In line with initial guidance, EBIT* for the second half of 2005 is expected to exceed 18m euros.
Bull will continue its cost reduction efforts especially in areas of focus in order to further improve its profitability and accelerate its transformation; non-recurring rationalization costs in the range of 10 to 12 million euros are expected for the second half of 2005.
Q3 key events
In the third quarter of 2005:
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Bull reinforced its commercial dynamics through the evolution of its partnership with NEC, shifting its position from a financial to an industrial partner.
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In the field of security, Bull completed the acquisition of Enatel, specialized in information systems access security and publisher of the WiseGuard software suite.
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Bull also signed an OEM agreement with HCL Infosystems. The partnership will enable Bull to expand the geographical market reach of its technologies, establishing a channel into the fast-growing Indian IT market, where HCL is a recognized leader.
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The consortium headed by Bull Siemens and EDS is one of consortium selected to run the technical solution demonstration phase of the Patient Medical Record tender in France.
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Finally, Bull ran a provocative advertising campaign in France to mark the launch of its new corporate identity. At the same time, a new logo move was unveiled - a symbol of the new image of the Company associating modernity, vitality and openness.
In the services arena, a number of important announcements are planned in the coming weeks concerning the creation of a Services Centre dedicated to open source solutions and new technologies, and the launch of an innovative and industrial services offering dedicated to open source.
Reverse stock split
On April 21st 2005, Bull's shareholders general meeting approved in principle the consolidation of Bull's shares (10 old shares for 1 new share). Bull has undertaken the legal and technical steps required to start the share consolidation process. The final time schedule will be communicated shortly.
* Earnings before interest, taxes and non-recurring items
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