iSoft apologies over its CSC and NPfIT statements

Today (June 7, 2010) iSoft issued a formal apology over a statement it made last week which suggested that a deferral of decisions in relation to the National Programme for IT (NPfIT) for its partner CSC was due to an uncertain political climate in the UK and ensuing election.

iSoft had further suggested that government change was a reason for delays in NPfIT procurements in the South of England.

“Both these statements were iSoft’s opinion and cannot be taken as fact. iSoft remains fully committed to delivering the NPfIT with its partner, CSC, and building on recent success and apologises for any unintended criticism of either the NHS or CSC,” says iSoft today.


Last week iSoft had said of CSC:

“…the political uncertainty in the lead up to the recent UK election andthe subsequent change in government have together led to the deferral ofdecisions in relation to the English NPfIT [programme] particularly forour partner Computer Sciences Corporation.

“For iSoft this hasaffected the timing and conclusion of negotiations surrounding thepotential of an agreement with CSC in relation to the marketopportunities in England and in particular the Southern cluster ofEnglish hospitals, as well as delays in milestone payments.”

iSoft is the main software subcontractor to CSC, which has contractsworth about £3bn under the NPfIT. iSoft’s Lorenzo software was due to bedelivered to NHS trusts across three-fifths of England butinstallations have been delayed by at least four years, in part becausethe software has not been ready for go-lives.

iSoft’s statementlast week linking delays in the NPfIT to the uncertain political climatewas widely publicised in the business media.

iSoft share price continues to fall

Last week this blog reported thatiSoft shares had fallen a record 30% to about 39 Australian cents. Thelatest reported share price is about 32 cents.

iSoft’s statement of 7 June 2010 in full:

“iSOFT Group Limited issued a market update on 2 June2010 partly referring to a deferral of decisions in relation to theNational Programme for IT (NPfIT) for our partner CSC being due to anuncertain political climate in the UK and ensuing election.

“Inaddition, further comments regarding government change were given as areason for delays in NPfIT procurements in the South of England. Boththese statements were iSOFT’s opinion and cannot be taken as fact.

“iSOFTremains fully committed to delivering the NPfIT with its partner, CSC,and building on recent success and apologises for any unintendedcriticism of either the NHS or CSC.

**

iSoft’sstatement to the Australian Stock Exchange on 2 June 2010:

“Australia’slargest listed health information technology has acheived a significantmilestone with the go-live of the University Hospitals of Morecambe BayNHS Trust. However delays in the rollout (which were beyond the controlof iSoft), uncertainty associated with the change in UK government and aweak European economic environment have created the need to clarifyiSoft’s earnings for the current fiscal year…

“The go-live atMorecambe Bay, which occurred over the weekend of 29 to 31 May 2010, is asignificant milestone as it represents a validation of the coreunderlying Lorenzo platform and the first implementation of LorenzoRelease 1.9 in a complex hospital environment.

“At the same time,the political uncertainty in the lead up to the recent UK election andthe subsequent change in government have together led to the deferral ofdecisions in relation to the English NPfIT [programme] particularly forour partner Computer Sciences Corporation.

“For iSoft this hasaffected the timing and conclusion of negotiations surrounding thepotential of an agreement with CSC in relation to the marketopportunities in England and in particular the Southern cluster ofEnglish hospitals, as well as delays in milestone payments.

“Therevenues associated with this agreement had been anticipated in fiscal2010 and are now anticipated in fiscal 2011. However, as with anycommercial negotiation, there is no certainty that revenues willultimately flow…”

Links:

iSoft’sapology to Australian Stock Exchange   – ABN Newswire

iSoftshares fall 30% as figures are revised – IT Projects Blog

iSofthit by political uncertainties – E-Health Insider

Whyis iSoft sombre after Morecambe Bay success? – IT Projects Blog

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