iSoft shuffles board as shares continue to fall
Market update fails to cheer markets
iSoft shares continued to fall yesterday despite a supposedly reassuring update from the health provider.
The company, at the centre of the UK's National Programme for IT, said some had misunderstood its earlier update: an update which it has already had to clarify when it was interpreted as criticism of the government and of key partner CSC.
The statement to the Australian Stock Exchange said the relationship with CSC remains strong and the successful "go-live" of the Lorenzo project in Morecambe Bay was a significant achievement.
iSoft also said that although it has still to finalise orders for the financial year 2010, revenue from this project is likely to be between 15 per cent and 20 per cent of totals for the year. It expects the rest of its revenues to be slightly ahead of forecasts and expects significant growth in 2011 and thereafter.
iSoft said it was not in breach of any bank covenants but admitted it believed "some resetting of covenants will be required". The firm blamed cashflow and currency movements for this - it hopes to have new covenants in place within a few months.
The company has also reshuffled its board - Gary Cohen stands down from his job as executive chairman to concentrate on his job as chief exec. Robert Moran is non-exec chairman - Moran is MD of iSoft's largest shareholder Oceania Capital Partners Ltd.
Dr Jim Fox, appointed deputy chairman of iSoft 28 May, is leaving the company. ®
iSoft's trading, in its previous incarnation, had seemed unusual. It surprised me the Australians bought it.
The time taken to produce Lorenzo seemed remarkably long.
Open Source is the only satisfactory way to progress with medical record systems and medical Practice automation.
That leaves CSC the only survivor, I think, of the trio of huge consultancies that took up the invitation to do something or other for CfH, now NPfIT, and soon to be who knows what.
Fujitsu departed a little while after disowning and sending on gardening leave one of their senior execs in the program who showed a nice set of slides of a supertanker foundering in heavy seas; Accenture announced, IIRC, that they had taken the offer because the huge amounts of money that seemed to be involved made them salivate, but after some consideration they had no idea how to do whatever it was that they might be being asked to do, and they were better off to take their merely large losses and go and do something else, and CSC must be feeling a little dubious at this point.
May we now go back to what we were doing before this distraction started, please?