iSOFT net profit up 137 per cent

MUMBAI, INDIA: iSOFT Group Limited, Australia's largest listed health information technology company today announced its full-year result for the 12 months ended 30 June 2009.

While NPAT climbed 137 per cent to $34.7 million, underlying NPAT rose 101 per cent to $66 million, said a press release.

EBITDA grew a better-than-expected 37 per cent to $132.4 million at a margin of of 25 per cent, above the guidance provided to the market on lower than anticipated costs.

The company's revenue grew 50 per cent to $540.1 million as iSOFT strengthened its global footprint with significant contracts in core markets such as the U.K, the Netherlands, Germany, Spain and Australia, and entered new markets in Latin America, Italy and Africa. Revenue met guidance, even as the AUD/GBP exchange rate fell from the first half to the second half. More than 50 per cent of the Group’s revenues are in GBP, said a press release.

The company's net operating cash flow was at $64.3 million, while net debt was reduced by $129 million.

The company announced a 1 cent unfranked dividend. The record date is 22 September and it is payable on 6 October. The dividend reinvestment plan is activated and the discount will be notified shortly, said the release.

Executive Chairman & CEO, Gary Cohen, said: “We have met or exceeded guidance on our key measures and reinstated a dividend. We have grown revenues more than 15 per cent year on year on a like-for-like basis. We have also strengthened our balance sheet.”

Looking forward, iSOFT expects sales growth of 10 per cent, almost five times the forecast industry average, in FY10, with margins at FY09 levels. Interest expense is forecast to be substantially lower ($10-$12 million), boosting NPAT in FY10. Operating cash flows are expected to trend across the halves in a similar way to FY09, and revenue and EBITDA is expected to be materially higher in the second half than in the first.