San Francisco McKessonHBOC's first-quarter profit fell below analysts' expectations, as officials predicted that a turnaround in its scandal-ridden health care information unit could take more than a year.

The company has been forced to restate its earnings because of accounting irregularities uncovered at the former HBO & Co., which it acquired last year.

The company earned $86.4 million, or 30 cents a share, in the quarter ended June 30, 4 cents a share short of expectations. Earnings for the same period a year earlier were $80.1 million, or 28 cents a share.

As part of the cleanup, the company took a $26.5 million charge, including $17.5 million in severance for former chief executive officer Mark Pulido, who oversaw the acquisition of the health care unit HBO & Co.

Since the scandal broke, McKessonHBOC shares have fallen more than 50 percent. Meanwhile, software sales have slowed as health care companies divert dollars from new products to Y2K issues.

The company was also hit by a lawsuit filed by Tempus Software, Jacksonville, Fla., alleging copyright infringement. Tempus contends that McKessonHBOC installed and used an unlicensed copy of its Encompass patient-scheduling software on its internal computer network and designed its Pathways Healthcare Scheduling using the Encompass program.

"We are very concerned about why a direct competitor, McKessonHBOC, installed our software and the extent to which it was used," said Tempus president and chief executive officer David Hayes.

Officials from McKessonHBOC could not be reached for comment.