Bull: Third-quarter 2013 revenues

  Bull: Third-quarter 2013 revenues

- Revenues of €264.8 million, up 0.7% at constant exchange rates

- 4.1% increase in order intake to €245million

- Outlook for 2013 confirmed

Business Wire

PARIS -- October 24, 2013


Following the meeting of the Board of Directors on 23 October 2013, Bull
(Paris:BULL) (Euronext Paris: FR0010266601 - BULL) has released its
third-quarter 2013 revenues^1.

2013 third-quarter key figures

Bull reported revenues of €264.8million in the third quarter of 2013, up 0.7%
at constant exchange rates and down 0.9% at current exchange rates. During the
quarter, order intake posted a solid year-on-year increase of 4.1% to
€245.0million. The group has continued to make up ground in terms of its
business levels, and revenues in the first nine months of the year are now
close to those of the previous year, down just 0.5% at constant exchange

               Revenues                           Order intake
(€ millions)   2013   variation                  2013   Year-on-year
                        (constant exchange rates)
Third quarter   264.8  +0.7%                       245.0  +4.1%
Nine months    870.9  (0.5%)                     880.5  (2.8%)

Philippe Vannier, Chairman and CEO of Bull, commented: “The activity developed
this quarter in line with our forecasts. Even so, there is a great deal of
uncertainty in the current environment, and certain markets remain under
pressure. The Group has tremendous potential in new markets and with the
acquisition of FastConnect in September, Bull has followed through on its goal
of speeding up its development in Cloud Computing and Big Data.”

Revenues and order intake by Business Line

Third quarter
(€ millions)      Revenues                       Order intake
                 Q3 2013  Q3 2012  variation  Q3      Q3      variation
                                                   2013     2012
Products +         171.5    169.2    +1.4%       162.6   148.6   +9.4%
of which HPC       34.3      35.6
Integration        66.5      71.1      (6.5%)      58.8     63.9     (7.9%)
Security          26.9     27.0     (0.4%)     23.6    22.9    +3.4%
Total             264.8    267.3    (0.9%)     245.0   235.3   +4.1%

Nine months to 30 September
(€ millions)      Revenues                       Order intake
                 9m 2013  9m 2012  variation  9m      9m      variation
                                                   2013     2012
Products +         556.3    569.8    (2.4%)      544.1   579.3   (6.1%)
of which HPC       120.9     122.4
Integration        224.9     231.8     (3.0%)      241.3    238.5    +1.2%
Security          89.8     82.4     +9.0%      95.1    87.7    +8.4%
Total             870.9    884.0    (1.5%)     880.5   905.5   (2.8%)

Innovative Products & Computing Solutions

Taken together, revenues from the Innovative Products and Computing Solutions
business lines rose by 1.4% to €171.5million in the third quarter of 2013.
The upbeat trends seen in IT infrastructure management, data center and cloud
services in particular helped to underpin the top-line performance during the
quarter. The quarter helped to make up for the weaker activity at the
beginning of the year, and over the first nine months of 2013, revenues fell
by just 2.4%. In High Performance Computing, quarterly revenues came to
€34.3million, down €1.3million on the year-earlier figure.

The sharp rise of 9.4% in order intake to €162.6million was driven by High
Performance Computing during the quarter.

In France, the market remained under pressure, but revenues moved higher since
the Group reached, as anticipated, the contract milestones that it just missed
in the previous periods. In international markets, revenues were below their
level in the third quarter of 2012 when they were boosted by high HPC billings
in Europe.

Business Integration Solutions

Third-quarter 2013 revenues and order intake for the business line came to
€66.5million and €58.8million respectively. The quarter was characterised by
a weak level of business in Brazil, exacerbated by unfavourable exchange rate
trends, and persistent pressure in the French market. That said, the
commercial pipeline in international markets remains strong.

Security Solutions

During the third quarter, order intake rose by 3.4% to €23.6million, with the
aerospace and defence sectors leading the way. Over the first nine months of
the year, order intake grew by 8.4% to €95.1million. Revenues, which stood at
€26.9million for the quarter, were stable on the year-earlier period and rose
by 9% over the first nine months of the year.

Other key highlights of the third quarter


Pierre Barnabé, 42 years old, has been named Chief Operating Officer of the
Bull Group (see the press release of 25 July 2013). Since 2011, Pierre Barnabé
had been Executive Vice President of the SFR Business Team. He began his
career in venture capital with Thales. In 1998, he joined Alcatel-Lucent where
he held various positions before becoming CEO of Alcatel-Lucent France. In
2010, Pierre Barnabé was appointed Director of Human Resources and
Transformation at Alcatel-Lucent. Pierre Barnabé graduated from the Rouen ESC
business school and gained a master’s degree from the Ecole Centrale de Paris.

The Group is refocusing on its core businesses

The Group has followed through on its goal of speeding up its development in
Cloud Computing and Big Data by acquiring FastConnect, a French leader in
distributed application architecture (30 September 2013). By clinching this
deal, Bull has strengthened its ability to provide a fully integrated Cloud
offering, from infrastructure through to applications. With the same aim in
mind, the Group is focusing on its core businesses and has sold its Bull
Formation IT training activities to M2i Tech (11 September 2013).

Big Data

Bull’s Big Data offering has achieved unmatched performance thanks to its
bullion servers with the Real-time Search and Big Analytics solution (23
September 2013). The bullion-Sinequa platform, which brings together bullion
technology, one of the most powerful servers in the world with the Real-time
Search and Big Analytics solution, has reached a capacity of 100 billion
records and performed 10 million indexed records per second, while at least 40
standard servers would be required to achieve comparable capacity. This
quantum leap in performance on a single server opens up a whole new range of
end-user experience in search-based real-time data analytics.

Next-generation data storage and management

Bull has launched StoreWay Optima 4600 and shored up its presence in
next-generation data management (10 July 2013). Bull has extended its current
product range by launching StoreWay Optima 4600, an ultra high-performance
storage bay designed to address the challenges of next-generation data

Policy of supporting innovation

For the third year in a row, the Group has continued its efforts to support
innovation and launched the 2013 Bull-Joseph Fourier Prize, aimed at boosting
the development of computer simulation in France (2 July 2013). In 2012, the
top prize was awarded to the team led by astrophysicist Jean-Michel Alimi,
Director of Research at the CNRS. The prize was awarded for a major advance in
understanding the Universe, with the first model of how the entire observable
Universe is structured, from the Big Bang through to the present day on
Genci’s Curie supercomputer.

The Group’s financial position

The Group’s financial position remains healthy. Cash continues to show
significant seasonal fluctuations, as in previous years, and is being
depressed in 2013 by the roll-out of some major projects.


Market conditions remain beset by uncertainty, and the outlook in certain
geographical regions and especially in France is still not as promising as it
was in 2012. Even so, the Group should benefit during the second half from the
initial gains of its action plans to improve profitability that it launched in
the first six months and from some significant contract milestones that were
delayed into the third quarter. Taking these factors into account, the Group
maintains its objective of an EBIT between €40 million and €50 million for

Conference call

Philippe Vannier, Chairman and CEO of the Bull Group, will host a conference
call today to discuss this press release.

Time:            08:30 (CET) on 24 October 2013
Dial in number:   France : +33 (0)1 70 99 32 12
                  UK: +44 (0)207 1620 177
                  Germany: +49 (0)695 8999 0509

The presentation used during the conference call will be available for
download from http://www.bull.com/investors/. Analysts may take part in the
question and answer session that will follow the presentation using the same

Financial Calendar

20 January 2014   Presentation of the 2014-2016 strategic plan
27 February 2014   Fourth-quarter 2013 revenues and full-year 2013 results

About Bull

Bull is a leader in secure mission-critical digital systems. The Group is
dedicated to developing and implementing solutions where computing power and
security serve to optimize its customers’ information systems, to support
their business. Bull operates in very high added-value markets including
computer simulation, cloud computing and computing power plants, outsourcing
and security.

Bull currently employs around 9,300 people across more than 50 countries, with
over 700 staff totally focused on R&D. In 2012, Bull recorded revenues of €1.3

For more information: www.bull.com www.facebook.com/BullGroup twitter.com/bull


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 nor
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, express 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.

Geographic analysis of revenues:

Third quarter
(€ millions)                              Variation
                         2013   2012  
                                          at constant exchange rates
France                    151.2  139.4  +8.5%
Europe excluding France   75.1    83.5    (9.0%)
Rest of the world        38.5   44.3   (5.4%)
Total                    264.8  267.3  +0.7%

Nine months to 30 September
(€ millions)                              Variation
                         2013   2012  
                                          at constant exchange rates
France                    485.6  490.0  (0.9%)
Europe excluding France   258.1   261.4   (0.7%)
Rest of the world        127.2  132.5  +1.6%
Total                    870.9  884.0  (0.5%)

Quarterly summary:

At the beginning of 2013, the revaluation of certain business activities,
notably in Brazil, resulted in very marginal adjustments (less than 0.5% of
consolidated revenues) to the scope of the Computing Solutions and  Business
Integration Solutions business lines. To make year-on-year comparisons more
relevant, 2012 figures by business line have been adjusted to reflect the
current scope of these units.

(€ millions)                  First    Second   Third    Fourth   Year
                               quarter   quarter   quarter   quarter
           Innovative        14.9     17.9     14.7             
            Computing          155.3     196.7     156.7
2013        Business
            Integration        70.2      88.1      66.5
            Security          27.1     35.7     26.9             
           Total             267.6    338.5    264.8            
            Innovative         11.3      19.7      15.4      26.1      72.5
            Computing          175.3     194.3     153.8     239.7     763.2
2012        Business
            Integration        74.1      86.6      71.1      95.0      326.9
            Security          25.9     29.5     27.0     40.3     122.7
           Total             286.5    330.2    267.3    401.2    1,285.2
            Innovative         +32.5%    (9.1%)    (4.4%)
            Computing          (11.4%)   +1.2%     +1.9%
variation   Business
            Integration        (5.2%)    +1.7%     (6.5%)
            Security          +4.8%    +21.1%   (0.4%)           
           Total             (6.6%)   +2.5%    (0.9%)           

Order intake
(€ millions)                  First    Second   Third    Fourth   Year
                               quarter   quarter   quarter   quarter
           Innovative        16.4     17.8     18.2             
            Computing          132.5     214.9     144.4
2013        Business
            Integration        59.0      123.5     58.8
            Security          29.2     42.3     23.6             
           Total             237.1    398.4    245.0            
            Innovative         10.5      26.2      9.4       25.3      71.5
            Computing          212.6     181.5     139.1     311.9     845
2012        Business
            Integration        76.3      98.3      63.9      120.6     359.1
            Security          35.1     29.8     22.9     49.9     137.6
           Total             334.4    335.8    235.3    507.7    1,413.2
            Innovative         +56.4%    (32.3%)   +92.7%
            Computing          (37.7%)   +18.4%    +3.8%
variation   Business
            Integration        (22.7%)   +25.6%    (7.9%)
            Security          (16.7%)  +41.8%   +3.4%            
           Total             (29.1%)  +18.6%   +4.1%            

Revenues and order intake by Business Line:

Third quarter
                 Innovative   Computing    Business        Security
(€ millions)    Products    Solutions   Integration    Solutions   Total
Order intake                                                      
Gross            37.8         144.9        60.3            25.9         269.0
Inter Business  (19.6)      (0.5)       (1.5)          (2.3)       (24.0)
Consolidated    18.2        144.4       58.8           23.6        245.0
Q3 2013
Consolidated    9.4         139.1       63.9           22.9        235.3
Q3 2012
Variation       +92.7%      +3.8%       (7.9%)         +3.4%       +4.1%
Gross            26.7         157.6        69.4            29.0         282.7
Inter Business  (11.9)      (0.8)       (2.9)          (2.1)       (17.9)
Consolidated    14.7        156.7       66.5           26.9        264.8
Q3 2013
Consolidated    15.4        153.8       71.1           27.0        267.3
Q3 2012
Variation       (4.4%)      +1.9%       (6.5%)         (0.4%)      (0.9%)
Organic                                                        +0.7%
Book-to-bill    1.24        0.92        0.88           0.88        0.93

Glossary and presentation of financial information:

Revenues: Unless stated otherwise, ‘revenues’ refers to consolidated revenues
from external customers. Unless stated otherwise, changes have been calculated
in respect of published data.

Order intake represents the total value of definite contracts signed during
the period. This total value of definite contracts reflects the contractual
commitments of clients, on which the Group’s management may make a judgement
regarding long-term contracts or those which are not for a fixed period
(automatic renewals, for instance). Book-to-bill ratio: represents the ratio
of new orders to revenues for the period.

In the various tables in this press release, sums may not add up to 100% due
to rounding.

^1 The figures provided in this press release are unaudited.


Investor Relations:
Vincent Biraud, +33 (0)1 58 04 04 23
Press Relations:
Aurélie Negro, +33 (0)1 58 04 05 02
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