Feeds

iSoft lives to restate another day

Long-awaited results show massive loss

Secure remote control for conventional and virtual desktops

iSoft today revealed a cataclysmic loss but says it has gained enough breathing space to restructure the business back to profitability.

However, the NHS software provider's financial results contains a thicket of provisos and material uncertainties, with the company noting in the accounts that some of these could cast doubt on its ability to continue as a going concern.

iSoft's publication of the long-delayed year-end statement has staved off the prospect of a shares delisting and comes just days after the Financial Services Authority announced a formal probe into possible accounting irregularities in the firm's accounts for the years to 2004 and 2005.

Today's figures showed revenues of £210.7m for the year to April 30, 2006, compared to £186.1m the previous year. A massive charge of £351.4m for goodwill impairment has sent operating costs spiralling to £539.8m, resulting in pre-tax losses of £343.8m, compared to a £5.9m profit the previous year.

The accounts have been compiled under the new revenue recognition policy the adopted earlier this year. The firm is reversing revenues for the years 2005, 2004, and 2003, to the tune of £76m, £54m and £44m. This revenue should be recognised in subsequent years.

In the notes to the accounts, iSoft's board says it is not possible to anticipate the implications of the FSA investigation; and adjustments or restatements to the firm's figures may be necessary, which could affect its financial position.

The board also warns of issues relating to its work for the NHS's NPfIT upgrade, pointing to problems confirming status of delivery with some Local Service Providers (LSPs). This could lead to…adjustments or restatements to its financial statements.

It also points to allegations of contractual breaches by iSoft from two LSPs, Accenture and CSC. The company denies the accusations and says it will defend them, but it warns that should they be substantiated, it could give rise to, er, adjustments to the financial statements.

The brightest spot in today's statement is that iSoft has renegotiated its banking arrangements, on the back of its cash flow projections for the next 12 months, and a major restructuring, including the disposal of non-core businesses.

However, the board warns that in preparing its projections, it recognises "material uncertainties that may cast doubt on the Group's ability to continue as a going concern". ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Scale data protection with your virtual environment
To scale at the rate of virtualization growth, data protection solutions need to adopt new capabilities and simplify current features.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?