AREM's response:
AmerisSoft counters concerns over Bulgaria deal
NEW YORK, May 17 (Reuters) - AremisSoft Corp. <AREM.O> which makes software for the health care and construction industries, on Thursday rejected concerns about the value of its contract with the Bulgarian National Heath Insurance Fund, saying that published reports have misunderstood the nature of the deal.
AremisSoft reiterated that the value of the contract, which is to provide software for Bulgaria's healthcare information systems, is $37.2 million. Its shares have fallen over the last few days over reports that the true value could be less than $4 million. Shares of the Woking, England, based company were halted Thursday morning at $13.28 pending a news release from AremisSoft.
According to a New York Times article published on Thursday, documents filed by the company last year with the Securities and Exchange Commission, along with comments this week by officials of the World Bank and Bulgaria, indicate the value of the contract is less than $4 million.
The contract also contains unsigned appendices in which AremisSoft and the Bulgarian government promise to negotiate over two other software packages worth a total of $29 million, the report said. .
But AmerisSoft said that reporters and shortsellers have published information from the officials at Bulgarian Ministry of Health and elsewhere who do not have a full understanding of the contract.
AmerisSoft said it has so far completed $7 million worth of work and that it only recognises work that has been completed on its balance sheet. But it said that $29 million of the contract is subject to certain conditions and future approvals.
Certain phases of the contract must be in compliance with Bulgarian law, which may require competitive bidding, it said.
AmerisSoft said that it expects the full $37.5 million project will be in place by the third quarter of 2002.
It also said it was comfortable with Wall Street estimates of more than $240 million in revenues for 2001. It said the Bulgarian contract would account for less than five percent of total revenue.
22:27 05-17-01 |
