iSoft deal with NPfIT supplier CSC “on track to be concluded in coming weeks.”
iSoft revises financial guidance for second-half because of currency fluctuations
iSoft told the Australian Securities Exchange today [15 March 2010] that it “remains on track for the go-live of Lorenzo Regional Healthcare Release 1.9 at Morecambe Bay in accordance with the agreed schedule, contrary to recent speculation in media reports”.
The go-live at Morecambe Bay is critical to iSoft and CSC, the NPfIT local service provider to NHS trusts in England, outside of London and the south.
It triggers a cash payment under the NPfIT NHS IT programme of tens of millions to CSC.
A successful go-live is also critical to a renegotiation of CSC’s contract by Christine Connelly,the CIO for Health, NHS Connecting for Health and the Department ofHealth. A new deal with CSC would set out its commitments to the nextgovernment – and the payments it would receive subject to successful deployments.
The deal is understood to be predicatedon the go-live of Lorenzo 1.9 at Morecambe Bay.
But it’s known that Morecambe Bay is extremely cautiousabout NPfIT go-lives. Nursing staff know the families of many of thepatients – and they do not want any of the disruption which affectedthousands of patients after the NPfIT Cerner Millennium system wentlive at Barts and The London.
There is much enthusiasm atMorecambe Bay for the new systems – but their go-lives are controlledby clinicians, and they will not want their decisions influenced bypolitics.
The original go-live date for Lorenzo 1.9 atMorecambe Bay was the end of this month. This is unlikely to happen anda new date has been set for April. This date iSoft expects to achieve.
“Australia’slargest listed health information technology company today reaffirmedits guidance for fiscal 2010 and said it is on track to achieve theagreed date for the rollout of Lorenzo at University Hospitals ofMorecambe Bay NHS Trust under the UK National Programme for IT [NPfIT].
Morecambe Bay go live
iSoftremains on track for the ‘go-live’ of Lorenzo Regional HealthcareRelease 1.9 at Morecambe Bay in accordance with the agreed schedule,contrary to recent speculation in media reports. iSoft expects themilestone at Morecambe Bay to be met according to the timetable agreedbetween its partner Computer Sciences Corporation CSC and the NHS, andexpects this achievement to trigger a cash paymenmt to the company.
Revised agreement with CSC
Thecompany is currently negotiating a revised agreement with CSC that isexpected to underpin the second half of the fiscal 2010 and lead tobenefits in 2011 and beyond. The revised agreement, which is on trackto be concluded in the coming weeks, will reshape the way iSoft and CSCjointly market iSoft and CSC-related solutions in England to build astronger market presence for lorenzo….
Reaffirmed FY10 guidance
Inview of the combination of the expected revised agreement with CSC andthe growth in iSoft’s pipeline during the first quarter of fiscal 2010,the company expects the full-year revenue growth, in local currencyterms, towards the upper end of its guidance of between 6-10 per cent.
Pound/euro currency movements
Sincethe company’s guidance in mid-February this year, the Australian dollarhas gained about 6% against the pound and the euro. As about 85%of thecompany’s revenues are denominated in pounds and euros, the translationeffect, if continued, will negatively impact EBITDA [earnings beforeinterest, taxes, depreciation and amortization] by $5 milion at the endof the second half versus guidance provided in February.”
iSoft reaffirms revenue guidance – Computerworld Australia
Minister to sew up deals with CSC and BT ahead of general election? – IT Projects Blog
iSoft loses a senior executive – IT Projects Blog
Slow progress at Morecambe Bay – E-Health Insider
Hansard cleans up a tense exchange on the NPfIT – IT Projects Blog