Keane The leading y2k service provider Message Board

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Technology Stocks : Keane The leading y2k service provider

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To: paul e thomas who wrote ()	1/20/1998 11:32:00 AM
From: Ron Sirch	Read Replies (1) of 1316

Keane will be releasing earnings for 4Q and '97 soon but I wanted to post the note from CEO John Keane which was added to the mail-out version of the Third Quarter Report. I believe it should be of interest to all y2k investors in addition to Keane investors, and better late than never applies here. IMO, Keane is becoming a proxy for how the market is developing for the better y2k companies and for the few remaining holdouts that continue to believe that the business opportunities inherent in y2k are overblown, this is must reading. <<Dear Shareholder: Keane's industry-leading Resolve 2000 practice generated over $43 million during the third quarter, up 905% from last year, while application outsourcing increased to $25 million, up 117% from 1996. Keane also continued to add additional year 2000 business, growing our backlog to approximately $339 million as of the end of September. Most significantly, we have already sold about $135 million in add on business to both new and existing year 2000 customers. Sincerely, (signed) John F. Keane Chief Executive Officer >> There's a lot here and probably warrants a second reading. I'm impressed with the 905% growth rate for y2k noted (who wouldn't be?) but I also like the add-on business numbers. It's the part of y2k analysis that I believe most Wall Street analysts are missing. I was taught along time ago that business is not making a sale, it's making a customer. Therein lies one of the big opportunities of y2k because some of the customers involved are mega-corporations with lots and lots of legacy work ahead over the next decade - and huge IT budgets to fund the work. And take a look at the y2k backlog of $339 million. That's real money! On top of all that Keane stated in their conference call that y2k business in the fourth quarter was being booked at a record pace. Keep an eye out for 4Q results. They should impress.

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