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Technology Stocks : Keane The leading y2k service provider -- Ignore unavailable to you. Want to Upgrade?

To: D. Swiss who wrote (1239)	6/24/1999 7:21:00 PM
From: Digitom	Respond to of 1316

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

To: D. Swiss who wrote (1239)	6/30/1999 11:57:00 AM
From: Greg Jung	Read Replies (2) \| Respond to of 1316

Tank time: Y2K warning. Wednesday June 30, 11:04 am Eastern Time Company Press Release SOURCE: Keane, Inc. Keane Revises Revenue and Earnings Estimates for Q2 and Fiscal Year Long-Term Outlook Unchanged BOSTON, June 30 /PRNewswire/ -- Keane, Inc. (Amex: KEA - news), a leading IT consulting firm, today announced that it expects revenue and earnings per share for the second quarter ending June 30, 1999 and the remainder of the fiscal year to be below its operating plan. The company attributed the shortfall to a drop-off in its Year 2000 business as well as recent signs of softness in its non-Year 2000 business. Revenue for the second quarter is expected to be in the range of $280 million to $282 million, or approximately 6% above revenue of $266.9 million in the second quarter of 1998. Earnings per share for the second quarter of 1999 are expected to be approximately $0.37 per share, as compared to $0.37 prior to acquisition costs and $0.31 after such costs in the comparable period in 1998. Keane plans to announce its second quarter financial results on July 15, 1999. The company also indicated that, based on information currently available, it anticipates revenue for the fiscal year ending December 31, 1999 to be approximately flat with the $1.1 billion recorded in 1998. Earnings per share for the year are expected to be in the range of $1.40 to $1.50 per share compared to $1.47 prior to acquisition costs and $1.33 after such costs for the year ended December 31, 1998. John F. Keane, Keane's chief executive officer and chairman of the board, commented, ''In June, we began to see clear indications of a softening in non-Y2K revenues that has caused us to re-evaluate our expectations for the second quarter and the remainder of 1999. Though Keane's core Plan, Build and Manage business continues to grow strongly, we now believe that year-over-year revenue growth will be below the 30-35% rate that we have seen for the last few quarters. ''We believe the slowdown is attributable to increased reluctance to implement new IT projects until all outstanding Y2K issues are resolved rather than a fundamental shift in the long-term prospects for our business. The outlook for the IT Services market post-Y2K remains positive and we expect Keane to maintain its leading position within the industry. Over a three to five year period, we continue to believe that Keane can post average revenue growth of 20-25%, with earnings growth at a slightly faster pace. ''In particular, we are seeing strongest growth coming from Keane's e-Solutions, Application Management Outsourcing, Customer Relationship Management, and Management Consulting practices,'' Keane concluded.