Feeds

iSoft delays results again

Condition now critical

Secure remote control for conventional and virtual desktops

Software supplier iSoft upset the City yesterday when it announced it would delay reporting its annual results indefinitely, saying it needed more time to sort things out with its bank, and time to hammer out the details of its future contract with the NHS's National Programme for IT.

This is the second delay within a month and has rattled investors. Shares fell a further 10.25 pence yesterday, meaning iSoft has seen almost 90 per cent of its market value wiped from its shares so far this year.

Until last month, iSoft had been booking future software licenses as current revenue. Its decision to stop this practise, and the subsequent re-statement of accounts, has put it at risk of breaching its banking convenants, the FT reports.

Before the revision, its full year pre-tax profit was expected to be between £17m and £22m. Now, analysts expect that figure to be between £3m and £7m.

Ovum analyst Phil Codling told us that the second delay has not inspired any confidence, since the company still hasn't been able to sort out the two key issues facing it: its banking facilities and the future of its contract with the NPfIT.

"I suspect the difficulty is that the two things are interrelated," said Codling. "The ability to get the [banking facilities] is dependent on future contract commitments."

In something of a Catch-22 situation, those contractual committments also depend on the situation with the banks being worked out, he added.

Further, the fact the company is currently bereft of a CEO makes its prospects look particularly bleak, as are its prospects for filling the position unless things improve dramatically.

At the time of its first profit warning in January, iSoft blamed its woes on delays to the NPfIT. Now its main partner in the deal, Accenture, has suggested it will use another supplier if iSoft can't deliver on time. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.