Lorenzo to boost IBA group

By: Karen Dearne

IBA Health Group expects the release of its new Lorenzo software will improve its forecast 18 per cent revenue growth next year.

Chief executive Gary Cohen said IBA was now the SAP of healthcare, and Lorenzo would transform the company into a "major international player" over the next two to three years.

"Health informatics will do for healthcare what enterprise solutions did for manufacturing and banking some 20-odd years ago," he said.

Australia's largest listed health IT company took a hit yesterday, however, due to costs associated with its $463 million takeover of former rival iSoft.

IBA's net profit for 2007-08 was $14.65 million, compared with $23 million the previous year, but the result included $35 million in acquisition, integration and other one-off costs.

Mr Cohen said revenues rose from $75 million in 2007 to $361 million last year, reflecting the company's expanded global footprint.

For 2009, IBA is predicting revenue of $540 million to $560 million, with earnings before interest, tax, depreciation and amortisation of between $120 million and $130 million.

"To the delight of many shareholders, we expect to reinstate the payment of dividends," Mr Cohen said.

The global launch of the Lorenzo platform is planned for November, with the clinicals release due early next year. Based on Microsoft's .NET service-oriented architecture, it it designed along plug-and-play lines.

IBA has also committed to opening the platform to outside developers. "That way, we'll quickly get more scalability and usability," Mr Cohen said.