iSoft reaffirms revenue guidance

Says work under the UK’s National Programme for IT (NPfIT) remains on track

iSoft (ASX:ISF) has moved to reassure investors that its FY10 financial guidance and work on the UK’s National Programme for IT (NPfIT) remains on track.

In an ASX statement today the e-health provider said it was on track to achieving the agreed data for the roll out of its Lorenzo application at Cumbria's University Hospitals of Morecambe Bay NHS Trust under the NPfIT. This was contrary to recent speculation in media reports.

“iSoft expects the milestone at Morecambe Bay to be met according to the timetable agreed between its partner Computer Sciences Corporation [CSC] and the National Health Service [NHS], and expects this achievement to trigger a cash payment to the company,” the statement said.

iSOft said it was currently negotiating a revised agreement with CSC. This is expected to underpin the second half of fiscal 2010 and lead to benefits in 2011 and beyond.

“The revised agreement, which is on track to being concluded in the coming weeks will reshape the way iSoft and CSC jointly market iSoft and CSC-related solutions in England to build a stronger market presence for Lorenzo," according to the statement.

The company said that with the revised agreement and its first half 2010 sales pipeline, its full year revenue growth was expected to be between six and 10 per cent.

The improvement of the Australian dollar against the pound and euro was expected to negatively impact EBITDA by about $5 million in the second half of FY10, the company said.

In February,iSoft CEO Gary Cohen said the company had signed a new agreement with CSC in December in an effort to gain greater visibility in the revenue being generated under the NPfIT.

“Although we will see some drop in revenue with the NPfIT contract compared to the previous corresponding period, we are confident in offsetting this with more profitable opportunities to sell product to CSC as well as direct to the National Health Trust,” he said.

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Tags iSOFTNational Health TrustNational Health Service [NHS]Computer Sciences Corporation [CSC]National Programme for IT (NPfIT)University Hospitals of Morecambe Bay NHS Trust

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