Possibility of taking over? What need to make it happen? Seems...

Possibility of taking over? What need to make it happen? Seems the prospect is increasing.

"Notwithstanding these discussions and the strategic review, the core business of the company remains healthy," iSOFT's statement said.

http://www.cio.com.au/article/358960/isoft_revenues_down_ceo_resigns/



ISOFT chief executive Gary Cohen has quit less than three months after relinquishing the chairman role after a horror full-year result.

The Sydney health information technology company yesterday reported a $382.9 million loss, following a $34.7m profit last year, that included a hefty $341m one-off impairment charge, primarily related to goodwill.

The result increased the prospect that suitors, including private equity, could be set to launch a takeover bid for the company after months of speculation.

Industry insiders said the terrible earnings numbers, coupled with the loss of a chief executive who is also a large shareholder, makes the group vulnerable to a takeover. Private equity firms and major global software players such as Microsoft are tipped as possible candidates.

Total revenue fell 20 per cent to $431m as earnings before interest, tax, depreciation and amortisation tumbled 77 per cent to $30m. Both missed iSoft's forecasts in June of revenue of $440m to $455m and EBITDA of $45m to $60m.


Small caps pip larger firms The Australian, 18 Jul 2010
Health firm puts it on plastic The Australian, 8 Jul 2010
Shake-up for iSoft board Australian IT, 15 Jun 2010
End of sidebar. Return to start of sidebar.
iSoft shares yesterday slumped 2.5c, or 15.15 per cent, on the news to close at a 52-week low of 14c. The company's shares have fallen about 82 per cent this year.

Chairman Robert Moran, who described the result as "disappointing", said iSoft's board had already begun implementing an in-depth review of the company's operations.

As part of this, Mr Cohen, who holds almost 9 million shares in the group, will step down but remain with the company to assist with its transition and strategic development.

He was appointed chairman in September 1999 after two years as chief executive, before relinquishing the chair to Mr Moran in June at the same time as recently appointed deputy chairman James Fox resigned.

Chief operating officer Andrea Fiumicelli has been appointed acting chief executive while an executive search firm hunts for a new boss. iSoft, Australia's largest listed health IT firm, yesterday also said it had begun a "board renewal" process to identify new candidates from Australia and Britain, where it has the majority of its business.

iSoft confirmed ongoing "support" from its largest shareholder with 24 per cent, Oceania Capital Partners, formerly known as Allco Equity Partners. Mr Moran is also managing director of Oceania, a listed investment company which helped IBA Health with funding to acquire the group in 2007, before it reverted back to iSoft last year.

iSoft has now appointed advisers to undertake a review of its capital and debt structure, and says talks are ongoing with "prospective strategic and institutional investors".The company will not pay a dividend.