iSoft warns of 'significant' NPfIT delays
30 Jan 2006 Click to see the

British healthcare software developer iSOFT has warned that delays in delivering software to the UK National Health Service would slash its previous revenue and profit forecasts.

In a trading statement this morning the company said that total full-year revenue generated from the programme is expected to be around 30m, about 55m pounds below previous expectations, with operating profit seen reduced by about 45m.

According to the trading update the Manchester-based company says that as a result of delays it no longer expects to see any revenue in the second half of the year from delivery of software to the NHS National Programme for IT.

"As has been widely reported, the National Programme for IT in the NHS in England has been experiencing a significant degree of rescheduling. The process to revise delivery plans and timescales within the programme is on-going. As a result it is now clear that delivery of iSoft application solutions to NHS trusts will occur, in general, later than previously expected by the company," the firm said.

The iSoft statement added: "The impact of the rescheduling process is likely to be that the phasing of revenues will be less concentrated in the earlier years of the programme than previously anticipated."

The warning had an immediate effect on the company's share price which at one point had plummeted to a three year low.

iSoft's warning follows a analyst briefing given by health IT services company System C on 25 January, at which the company warned that revenues were down due to delays caused by a "shortage of third party product to implement". Although it did not mention iSoft, System C is active in the three northern clusters using iSoft software.

Industry sources indicate that the delays and rescheduling are related to delays in the availability of the strategic Lorenzo software solution iSoft is contracted to provide for three of the five regions of NPfIT - North West and West Midlands, Eastern and North Eastern.

The delayed system is the second phase of the integrated strategic solution to be provided to NHS trusts under NPfIT [known as P1R2] incorporating functionality such as results and order communications, clinical noting and departmentals such as maternity, theatres and A&E.

Although almost 50 trusts have been provided with a version of iSoft's iPM patient administration system under NPfIT, with a few exceptions these have been community and mental health trusts with a pressing need for a PAS.

But with significant delays in the availability of the strategic P1R2 clinical solution, there is currently little new to offer more complex acute trusts and a growing gap has opened up in the implementation schedule once current implementation work has been completed.

In a statement CfH said: "Some LSP system deployment activity is being re-scheduled. It is because suppliers and their subcontractors, including iSoft, have taken longer than anticipated to deliver effective software solutions that interface with national applications such as the Spine and Choose and Book."

The statement added that in the context of a ten year programme the impact of the rescheduling was "not significant", and said suppliers did not get paid until they deliver. "Completion risk lies with suppliers. We continue to look to our prime contractors who are responsible for managing their software suppliers performance."

In its own statement LSP for the North West and West Midlands, CSC Alliance, told EHI: "Since the start of the National Programme for IT the CSC Alliance has, we believe, deployed more Patient Administration Systems across the North West and West Midlands cluster than the other LSPs working across the Programme. All of the CSC Alliance implementations have used the iSoft solution."

http://www.e-health-insider.com/news/item.cfm?ID=1670

whats occurring?

news just come out , to do with escaping fines. I have just offloaded 50,000 at 49.5p. I have 70,000 left now. I should have got up a bit earlier this morning, I slept in unusual for me. Pity I did not catch them at .53p. Have you still got yours bonfield? I keep hanging on there hoping someone may try to takeover the company, unfortunatly this does not seem to be happening at the moment. Good luck to those still holding.

I never had any, but I'm glad I wasn't short!

American computer company, Computer Sciences Corporation(CSC) said Thursday it had been awarded a nine-year contract by Britain's National Health Service valued at up to $3.73 billion.

good luck to them!!

they may have been, but clearly IOT has not!

35.5p today...lowest ever...but it will go lower cos anything associated with NHS is doomed.

hyle they did drop down to .30p at one stage last week. They need a takeover bid to get out of trouble. There has been a lot of talk over the past few months that they have been in talks with different companies, but it apears that these talks have not come to anything. Without positive news I think the shares are probably worth what they are at the moment. It was only a few weeks ago when you could have sold at .58p. Thinking back this was around three weeks ago. I do hold some myself.

Hyle have you still got your isoft shares? They seem to be on the way up again, after their big fall. They have been up to .44 today then they have dropped back down to the .40p mark at close. I was watching bloomberg tv the other morning and isoft was mentioned, the reporter said that they shold make good progress over the next two years. The day I was watching bloomberg tv, the shares were .34p per share and since then they have been up to the highest level off .4425p. good luck with this one. They were 1.17 in april this year.

It is a myth that a person drowning rises to the surface three times. ISOFT shares are doomed and will be lost in the murky depths were they have to to be after the sordid actions of certain directors
The newspapers have not caught the full impact of the share sales of certain of the directors. One must go back about 4 to 5 years and see the of number shares held by the directors at that time. Then one needs to move forward month by month and note the share disposals by certain directors. In some cases it is interesting to see the Isoft news releases before the share disposal. What aggravated the situation was the denials that Isoft made ....... evidence has now surfaced of how the market was mislead. I anticipate that there may be more rot to follow. Sell your Isoft shares ...you will not regret that action.

The problem for anyone taking over iSoft will be the horrible lawyers' and accountants' bills for the due diligence process. Before buying a company like iSoft, BT (or whoever) would have to check the whole thing over thrice and get warranties -- from whom?

No one is going to buy the entity and so all the due diligence and warranties will not apply ....at the best part of the trading activity will be purchased.
It just beats me that the directors were flying about the world both buying companies and establishing new deals ...and all the time they had not wiped there own bottoms.
I knew one of the main directors quite well ...this was one who owned a major junk of the shares and he must have gained 30m or so
I was not in any way impressed by him. What talents/ability he had were well concealed. Ironically although i rated him low when i saw him at the business table i certainly saw no evidence of dishonesty or being a trickster. So how/why did this main director allow himself and the company to depart so far from the white line

IOT come in with truly horrid figues as expected with mutterings about ability to survive ..... sp jumps a good 10% on basisi that IOT also say "possible t/o talks are progressing satisfactorily" ...... does anyone have any idea what sort of t/o figure is being bandied about?

0p?

;-))

I have sold out this morning at .45 and a quarter I may buy back if they drop back down to .40p

i bought at 40.5 very recently, and have now placed a running stop at 45 ..... more than happy to take just a modest profit, but of course happier still if a large one materialises

you will definatly sell them today richard.

fine by me! ..... for me, it was always just a speccy punt anyway

Takeover very unlikely for IOT with so much debts at stake. SELL while u can now.

my stop got hit, so took a nice 10/12% profit from a few days holding .... would that i could always do so.

whether or not t/o is likley, i have no real idea, but certainly i can see no good reason for a predator to pay much of a premium if any on current sp ..... no doubt those with more knowledge of this company will take a different view, so i watch with interest