iSoft apologies over its CSC and NPfIT statements

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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 and the subsequent change in government have together led to the deferral of decisions in relation to the English NPfIT [programme] particularly for our partner Computer Sciences Corporation.

"For iSoft this has affected the timing and conclusion of negotiations surrounding the potential of an agreement with CSC in relation to the market opportunities in England and in particular the Southern cluster of English hospitals, as well as delays in milestone payments."

iSoft is the main software subcontractor to CSC, which has contracts worth about £3bn under the NPfIT. iSoft's Lorenzo software was due to be delivered to NHS trusts across three-fifths of England but installations have been delayed by at least four years, in part because the software has not been ready for go-lives.

iSoft's statement last week linking delays in the NPfIT to the uncertain political climate was widely publicised in the business media.

iSoft share price continues to fall

Last week this blog reported that iSoft shares had fallen a record 30% to about 39 Australian cents. The latest 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 June 2010 partly referring to a deferral of decisions in relation to the National Programme for IT (NPfIT) for our partner CSC being due to an uncertain political climate in the UK and ensuing election.

"In addition, further comments regarding government change were given as 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.

**

iSoft's statement to the Australian Stock Exchange on 2 June 2010:

"Australia's largest listed health information technology has acheived a significant milestone with the go-live of the University Hospitals of Morecambe Bay NHS Trust. However delays in the rollout (which were beyond the control of iSoft), uncertainty associated with the change in UK government and a weak European economic environment have created the need to clarify iSoft's earnings for the current fiscal year...

"The go-live at Morecambe Bay, which occurred over the weekend of 29 to 31 May 2010, is a significant milestone as it represents a validation of the core underlying Lorenzo platform and the first implementation of Lorenzo Release 1.9 in a complex hospital environment.

"At the same time, the political uncertainty in the lead up to the recent UK election and the subsequent change in government have together led to the deferral of decisions in relation to the English NPfIT [programme] particularly for our partner Computer Sciences Corporation.

"For iSoft this has affected the timing and conclusion of negotiations surrounding the potential of an agreement with CSC in relation to the market opportunities in England and in particular the Southern cluster of English hospitals, as well as delays in milestone payments.

"The revenues associated with this agreement had been anticipated in fiscal 2010 and are now anticipated in fiscal 2011. However, as with any commercial negotiation, there is no certainty that revenues will ultimately flow..."

Links:

iSoft's apology to Australian Stock Exchange   - ABN Newswire

iSoft shares fall 30% as figures are revised - IT Projects Blog

iSoft hit by political uncertainties - E-Health Insider

Why is iSoft sombre after Morecambe Bay success? - IT Projects Blog




2 Comments

  • With the variety of statements from iSoft I am not sure what to think.

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