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2/16/2010 11:45:22 AM
Sydney, Feb 16, 2010 - (ABN Newswire) - iSOFT Group Limited (ASX:ISF) Australia's largest listed health information technology company today announced its half-year result for the six months ended 31 December 2009.
- Revenue of A$237 million and EBI TDA of A$40.8 million impacted by:
-- Currency translation effect of A$34m on Revenue, and A$12m on EBITDA.
-- A$11m Revenue and EBITDA effect from phasing of recognition of NPfIT milestones in H1 09 versus H1 10.
-- Allocation impact of A$ corporate costs.
- All segments met or exceeded local currency budget, except ANZ and AMEA.
- Overall growth in backlog, 48% increase in backlog excl. NPfIT.
- Significant growth in global health IT spending, boosted by US$34 billion US stimulus package.
- Renegotiated CSC contract improved revenue visibility.
"Each of the main segments performed as expected or better in local currency, demonstrating the underlying strength of the global health IT industry," said Executive Chairman & CEO, Gary Cohen. "As we previously flagged to the market, the higher Australian dollar had the biggest impact on our first-half result. Notwithstanding the currency effect, we are seeing growth in our core businesses, we are meeting important milestones in the rollout of our Lorenzo solution in the UK, and we are continuing to invest in world-class solutions as significant opportunities emerge in important markets such as the US, Europe and Latin America."
iSOFT's core business, which excludes the NPfIT contract, generated about 80% of Group revenue in the half. The UK and Ireland business, excluding NPfIT, grew 11% year on year, and the non-NPfIT backlog climbed 48% compared with a year earlier.
In the NPfIT, release 1.0 of iSOFT's Lorenzo Regional Care solution is successfully operating in seven NHS Trusts in England. In the first half iSOFT successfully implemented, with our partner CSC, release 1.9 of Lorenzo Regional Care at Bury NHS. Release 1.9 is on track to be implemented in a major hospital setting at Morecambe Bay by the end of March.
In December iSOFT negotiated a new two-year agreement with CSC that provides greater revenue visibility going forward. Although the new agreement will see some drop in revenue, we anticipate that this will be offset by more profitable opportunities to sell product to CSC as well as direct to the NHS Trusts.
Markets in A ustralia, the Middle East, Africa and Asia, which represent about 17% of Group revenue, felt the effects of a slowdown in public sector IT spending amid the Global Financial Crisis. There are encouraging signs of a recovery in some of these markets, particularly in Australia where the government is making progress on its agenda of healthcare reform, including a commitment to e-Health. iSOFT's businesses in Europe, China and Latin America are expected to grow amid above-market spending on health IT.
iSOFT entered the important US market in the first half with the acquisition of Boston-based technology company BridgeForward. The US Government's stimulus package is reshaping the healthcare IT landscape with a US$34 billion investment in healthcare technology. iSOFT will continue to invest in existing and new solutions that have a role to play as this market undergoes an unprecedented transformation.
At constant currencies, iSOFT's FY09 Re venue would be A$470 million and EBITDA would be A$113 million. In FY10, iSOFT expects overall revenue growth of between 6-10% (on a constant currency basis), an EBITDA margin of 21-23%, and a split of 1/3 versus 2/3 in EBITDA between H1 FY10 and H2 FY10. Operating cash flow in the second half is expected to be significantly positive as per FY09. A dividend is anticipated for FY10.
iSOFT invites you to its results presentation to be held today at 10:30 AEDT at its Sydney office.
A live webcast can also be accessed at: _www.brr.com.au/event/63769?popup=true. The webcast will be available on iSOFT's website. A teleconference facility will also be available.
Teleconference instructions for participants:
Access Number: +61-2-8212-8410
Toll Free Number: 1800-153-721
Participant Pin Code: 177102#
Step 1: Participants dial the Event access number.
Step 2: At the prompt, participants will hear the Q&A instructions.
Step 3: Participants will be placed on hold until the Event begins.
The presentation details are as follows:
- 1H FY10 Half-Year Results
- Presented by Gary Cohen, Executive Chairman & CEO; Martin Deda, Group Finance Director
- Tuesday, 16 February 2010; 10:30 AM AEST
201 Sussex Street
For the complete iSOFT Group H1 FY10 Results and Presentation Transcript, please click the link below:
H1 FY10 Results:
H1 FY10 Presentation Transcript:
About: iSOFT Group Limited
iSOFT Grou p Limited (ASX:ISF) is the largest health information technology company listed on the Australian Securities Exchange, and trades globally under the name 'iSOFT".
iSOFT builds software applications for healthcare. We work with healthcare professionals to design and build solutions that answer all of the difficult questions posed by today's care delivery challenges. Our solutions act as a catalyst for change, supporting the free exchange of critical information across diverse care settings and participant organisations. We are the leader in the provision of advanced application solutions in modern healthcare economies around the world Today, over 13,000 provider organisations in 38 countries across five continents use iSOFT's solutions to manage patient information and drive improvements in their core processes. The group's sustainable development is delivered through careful planning, in-depth analysis of our market and anticipation of evolving requirements. Our bu siness is driven by the collective talent, experience and commitment of more than 4,600 specialists around the globe, including over 2,300 technology and development professionals.
A global network of iSOFT subsidiaries, supported by an extensive partner network, provides substantial experience of national healthcare markets. As a result we offer our customers comprehensive knowledge of local market requirements, in terms of culture, language, working practice, healthcare regulation and organisational structure.
For more information on iSOFT, please visit the company's website at www.isofthealth.com