Financially Speaking… Integral Systems…

Integral Systems, Inc. (Nasdaq: ISYS) (“Company”) has warned thatQ3 results are expected to be below management’s expectations.

Preliminary financial results indicate that earnings will be impacted by continued economic pressure, resulting in lower revenue from delayed contract awards, higher than anticipated overhead and support costs, and a significant bad debt reserve taken on one of the Company’s commercial contracts. Ongoing softness in the commercial product market and procurement delays in the government marketplace have adversely impacted revenue and gross margin performance. Additionally, selling, general and administrative costs remained high in the quarter as a result of continued business development, research development and infrastructure enhancement initiatives. Preliminary results for third quarter are revenue of approximately $39 million a loss of $0.09 on a per share basis. Management anticipates reporting revenue for the fiscal year of approximately $160 million, or 5 percent below the previously reported mid-year estimate. Earnings per share for the entire 2009 fiscal year is now projected to be approximately $0.15. “The prolonged global recession continues to weigh on business placing pressure on our customers and our business partners, and extending business development cycles across our markets,” said John Higginbotham, Chief Executive Officer of Integral Systems. “We remain focused on investing in our future business growth while enhancing our compliance infrastructure and creating sustainable efficiencies in our business operations.”