Found this in WSJ Int...
DJ Keane Off 13% On Fears Of Weak 2Q, 2nd Half
By Maria V. Georgianis
NEW YORK (Dow Jones)--Shares of Keane Inc. (KEA) fell more than 11% Thursday on concerns that the computer services company could have a second-quarter earnings shortfall and reduce earnings view for the second half.
Keane, along with many others in its sector, has fallen out of favor with investors concerned about the potential of customers to slow down tech spending in order to prepare for the year 2000 computer glitch.
The prevailing view is that businesses will continue to buy technology products and services, but that they may hold off on spending on noncritical tech projects.
Computer-services companies such as Keane have been trying to boost their offerings in hot areas such as e-commerce, which aren't expected to be affected in this transition year.
Keane management said they are noticing "some softness for new booking for discretionary development projects," said Adams Harkness & Hill Inc. analyst Kevin Yen, who rates the stock at accumulate.
In addition, recent earnings warnings by services companies such as Condor Technology Solutions Inc. (CNDR), Metro Information Services Inc. (MISI), and Cotelligent Inc. (CGZ) have reawakened investor wariness about the group.
First Call Corp.'s second-quarter consensus earnings estimate is 41 cents a share, from a range of 39 cents to 44 cents. The company reported year-earlier earnings of 35 cents, excluding a charge.
For the year, analysts see earnings of $1.64, or a range of $1.56 to $1.70, First Call said. For 1998, Keane reported earnings of $1.33, excluding items.
A Keane spokeswoman didn't immediately return calls for comment.
In recent trading, the AMEX-listed stock was off 3 1/16, or 11.4%, at 23 11/16 on volume of 1.2 million shares, compared with a daily average of 625,100.
- Maria V. Georgianis; 201-938-5244; maria.georgianis@dowjones.com
Reached later, a Keane spokeswoman said the company is in its quiet period and is unable to make any comments about earnings until after its second-quarter report, due July 15.
-By Maria V. Georgianis; (201) 938-5244
e-mail: maria.georgianis@dowjones.com
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