iSoft CEO flatlines after $383m loss

Gary Cohen, chief executive officer of health technology provider iSoft, will step down after the company posted a staggering $383 million loss for the year ending 30 June 2010.

iSoft chief executive officer Gary Cohen is to step down after the company posted a $383 million loss for FY 2009-10. (Exit sign image by Cory Doctorow, CC BY-SA 2.0)

iSoft chairman Robert Moran thanked Cohen for his achievements over the last 10 years within iSoft, and said that he would remain with the company despite stepping down from his role.

"Gary has agreed to remain with the company to assist with transition and our strategic development. His experience and knowledge of the specialised sector internationally will be invaluable as we begin the search for a new chief executive who will drive the company forward in this next phase of its evolution," Moran said in a statement.

Cohen's gradual exit from the company marks the fourth major vacancy in as many months.

June saw the departure of Australia and New Zealand managing director Denis Tebbutt, while July saw the exit of operations director Rein de Vries and client engagement director Peter Hong.

iSoft reported operational cost savings of $50 million by the end of June 2011, with half of that amount achieved through a reduction in staff numbers.

Moran flagged a "board renewal process" that will see the company assess its future goals.

The company has already been consolidating its product offerings, reducing them from 200 down to 150, and it is targeting a "reorientation of business development and R&D to achieve greater speed to market".

The $383 million statutory loss is in stark contrast to the company's $34 million profit reported a year ago.

The board chairman said that the result was disappointing and attributed it to a difficult economic environment in the public sector and key international markets.

Total revenue also fell 20 per cent to $431 million in 2009/10, with reported earnings before interest, tax, debt and amortisation falling 77 per cent to $30 million.