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. ®

New hybrid storage solutions

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple Pay is a tidy payday for Apple with 0.15% cut, sources say
Cupertino slurps 15 cents from every $100 purchase
Forget silly privacy worries - help biometrics firms make MILLIONS
Beancounter reckons dabs-scanning tech is the next big moneypit
Microsoft's Office Delve wants work to be more like being on Facebook
Office Graph, social features for Office 365 going public
Alibaba swings a large one with STONKING IPO legal bills
Chinese e-commerce beast searches for $21bn from investors
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
EMC has nothing to say on VMware sale plan
Rumour and counter-rumour swirl around Wall Street
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
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.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.