Feeds

iSoft delays results again

Condition now critical

Bridging the IT gap between rising business demands and ageing tools

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. ®

Build a business case: developing custom apps

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.