Troubled software firm iSOFT – a key supplier for the
NHS’s £12.4bn National Programme for IT (NPfIT) – has revealed a
£382m loss in its delayed full year results.
The software firm’s Lorenzo electronic patient record system was
selected as the basis of the key care record service component in
three out of the five NPfIT geographical clusters.
The company had twice delayed its results and has been forced to
change its accounting rules after irregularities were found in its
2004 and 2005 accounts. Earlier this week, the Financial Services
Authority confirmed it had launched an investigation into
iSOFT.
Steve Graham, iSOFT’s group commercial director, was suspended
earlier this month, pending “a more formal investigation”, the
company said.
In his report, iSOFT chairman and acting chief executive John
Weston said the second half of the financial year ended 30 April
2006 had been “a turbulent period”, triggered by the need to issue
a revenue and profit warning in January. This was “primarily due to
delivery and implementation delays” connected with NPfIT, he
said.
Weston added that “the sheer scale of the project and its
pioneering aspects have resulted in delays to the delivery schedule
for a wide variety of reasons, some of which are beyond iSOFT's
control”.
The company has come to a new financing arrangement with its
banks, and is also revising NPfIT delivery schedules and payment
milestones “in all regions, affecting most contracted parties”.
The software supplier had signed an agreement with lead
contractor CSC confirming details of £153m of products and services
to be delivered – including £36m already delivered – “with the
opportunity to win additional NPfIT business in future through CSC
in certain circumstances”.
The deal confirms that CSC will have the right to take over the
management of the development team if iSOFT is unable to fulfil its
obligations.
Vote for your IT greats
Who have been the most influential people in IT in the past 40
years? The greatest organisations? The best hardware and software
technologies? As part of Computer Weekly’s 40th anniversary
celebrations, we are asking our readers who and what has really
made a difference?
Vote now at:
www.computerweekly.com/ITgreats