iSoft chief executive falls on his sword

e-Health firms chief executive resigns after disastrous finacial results for FY2010

ISoft's chief executive Gary Cohen has resigned after disastrous financial results for the Australian e-Health giant were announced today.

Annual results for FY 2010 showed iSoft revenues down 20 per cent to A$431m (£254m) compared with the previous year.

Earnings before interest, tax, depreciation and amortisation (EBITDA) were down 78 per cent to A$30m when currency fluctuations are taken into account.

The appreciation of the Australian dollar and the deferral of decisions relating to the UK government's National Programme for IT (NPfIT) explains the poor financial performance.

In an announcement to the Australian Securities Exchange (ASX), iSoft chairman Robert Moran said: “A difficult economic environment, adverse currency impact, delays to the UK NPfIT implementation, and an increased cost structure all contributed to this result.”

Chief operating officer Andrea Fiumicelli will deputise for Cohen until a replacement is found.

However Cohen will stay with the company to focus on assisting the board in the evaluation of strategic options for the company, according to an iSoft's statement to ASX.