iSoft share price slumps again and CEO "forced to sell" shares

 
The share price of NHS software supplier iSoft has fallen to a new low.
 
Under the NPfIT NHS IT scheme, iSoft’s Lorenzo software is assigned to be the main  patient administration system used in  hospitals throughout England, outside of London and the south.  
 
Earlier this month iSoft shares fell by the  most on record – 30%, to 39 Australian cents.
 
Now the share price has sunk to 17.5 cents, the lowest on record. 
 
In 2007 iSoft’s shares reached a high of about $1.52.

The fall in share price is despite the  achievement of an NPfIT milestone go-live at University Hospitals of Morecambe Bay NHS Trust at the beginning of June.
 
NPfIT local service provider CSC, which is supplying the Lorenzo system, has yet to be paid for the Morecambe Bay installation. Until it is, it is unlikely iSoft will be paid for the go-live. 
 
iSoft has announced revised figures and, in a separate statement, apologised to CSC over remarks it made in a regulatory statement to the Australian Stock Exchange. 
 
Today, 25 June 2010, Gary Cohen, CEO of iSoft, wrote to his company’s non-executive chairman Robert Morgan saying he has been forced to sell some of his shares.
Cohen said in the letter that he has been required to sell  shares in iSoft as a result of margin calls associated with his shareholding in iSoft. He’d borrowed funds on security of his iSoft shares.
“The original borrowing related to less than 1% of the then market value of ISF [iSoft] shares  and less than 15% of the total shares in which I had a relevant interest. With the recent significant fall in share price, this position has changed and I have been forced to sell some shares.”
In a regulatory announcement today, iSoft said that its CEO has sold some shares in the company and that iSoft is “not aware of any other explanation for the volatility and change in share price”.  
The Australian Securities Exchange has been notified in recent weeks that director shares worth about $4.5m [£2.6m] have been sold.  
 
Links:
NPfIT officials will stand by Lorenzo – IT Projects Blog (2008)
iSoft shares fall record 30% – IT Projects Blog
 
 
Why has iSoft’s share price come under pressure? – E-Health Insider view
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It has been said before ...The iSoft Lorenzo solution is not fit for purpose...Read Cassandra's blog at guidedinsights for the full story.

CSC ...might be bigger than iSoft but it needs NPfIT just as much. http://cassandra-guidedinsights.blogspot.com/2009/02/why-nhs-it-wont-work.html

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