Health information technology group iSOFT Group Ltd
(ASX:ISF) says its relationship with UK’s Computer Sciences Corporation is strong and the Northern Clusters Contract remains on foot.
The company released a statement to the ASX this morning in response to shareholder concerns over delays to the contract and its standing with CSC.
On June 2nd, the company downgraded its revenue forecasts for fiscal 2010 to between $440 and $455 million and earnings before interest, tax, depreciation and amortisation to come in between $45 and $60 million.
The revised earnings guidance was due to the delay in finalising negotiations with UK’s Computer Sciences Corporation in relation to market opportunities in England, as well as delays in milestone payments.
However, iSOFT Group says the Northern Clusters Contract, which are three northern clusters of hospital trusts in the UK, is still continuing to progress.
The company says that while it is too early to give guidance for fiscal 2011, revenue under the CSC contract will be significantly less than in fiscal 2010, and the company has been working to build the order book outside its relationship with CSC.
For fiscal 09 iSOFT Group’s profit more than doubled from the year before.
