In its annual report, which is published today, Robert Morgan, non-executive chairman of iSoft, says the implementation of the National Programme for IT [NPfIT] has been slower than the company's executives expected. This has meant that iSoft has not yet received a number of milestone payments associated with the NPfIT, and other related income has been delayed.
"However we are encouraged by the Department of Health's recent decision to continue with national applications already procured while moving to a more locally-led plural system for new contracts," says iSoft.
iSoft is the main software subcontractor to NPfIT local service provider CSC which has £3bn worth of contracts to deliver systems to the NHS.
iSoft says it expects to achieve "very significant cost reductions by June 2011".
Andrea Fiumicelli, acting CEO, said that although Lorenzo was developed for the NPfIT, iSoft owns the Lorenzo intellectural property and is able to benefit from deploying it elsewhere.
"Changes announce by the Department of Health in September 2010 expand the potential opportunities available to iSoft."
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