Sydney Tuesday, 13 July 2010 iSOFT Group Limited (ASX: ISF) today announced that whilst the audit of its financial results for FY10 is still underway, the current estimate of the outcome for the year is revenue of approximately $430 million and EBITDA of approximately $40 million before exceptional and one-off items. Following the delays associated with the rollout of Lorenzo under its NPfiT contract, it is now expected that the development work on Lorenzo will continue until September 2012. This has led to an accounting adjustment of the revenue recognized to 30 June 2010 of $4.1 million. This adjustment does not have any cash flow impact. The additional time required for delivery will mean that the revenue recognition of milestones, which are a fixed amount, under the percentage of completion method, will now be extended over a further 12 months. However, the additional time and cost to develop Lorenzo is expected to be supported by monthly revenue receipts during the development period. End
ISF Price at posting:
18.5¢ Sentiment: None Disclosure: Not Held
