iSoft in good health recording $20m after tax profit growth

Global e-Health spend growth, NHS contract underpin results

ASX-listed healthcare software provider iSoft (ASX:ISF) has recorded a $20m growth in its net profit after tax (NPAT) to $34.7m, up from $14.7m for the last financial year.

The company, which operates in 39 countries and has about 7700 employees, also record total revenue growth of $540.1m up from $360.9m the previous financial year. EBITDA was $132.4m, up from 94.4m.

The bulk of the company’s revenues (57 per cent) came from the UK and Ireland, largely driven by iSoft’s involvement in the NHS National Programme for IT. Continental Europe accounted for 26 per cent, A/NZ 12 per cent and the rest of the world 5 per cent.

Licences accounted for 35 per cent of revenues, maintenance & support 40 per cent, implementations 20 per cent and other services 5 per cent.

In a financial presentation to investors CEO and chairman Gary Cohen said that whereas global IT spending across most industries had decreased on average 6.6 per cent during 2009, spending on Health IT had grown 2.2 per cent.

(Read about and see a walkthough of iSoft’s data transformation carried out this year.)

Cohen said the growth was being driven by ageing populations and unsustainable levels of healthcare costs, with the US expected to spend about 20 per cent of its GDP on healthcare by 2017.

Major trends in health IT spend included spend on electronic health records, electronic patent appointment booking, prescription transfers, physician order entries, medical image archiving and tele-medicine.

Major global e-health initiatives included the 12.7b pound NHS National Programme for IT which will service 60 percent of the UK National Health Service and a 10 billion euro electronic health record programme in France.

China was also reported to be spending $US124 billion on healthcare reform and Australia $1.8 billion on its own e-Health package.

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