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

To: Lee Lichterman III who wrote (984)	2/11/1999 7:46:00 AM
From: Kip518	Respond to of 1316

Doesn't appear from CNBC or morning financial papers that KEA's spreadsheet slip-up is getting great play. This may pass more quietly than we fear. Clearly, a gap-down opening is buy time.

To: Lee Lichterman III who wrote (984)	2/11/1999 7:58:00 AM
From: Kip518	Read Replies (1) \| Respond to of 1316

From yesterday's WSJ story: .... Keane first started reporting application outsourcing backlog during the third quarter because Wall Street analysts were curious as to how quickly the company was growing its non-year 2000 services. The company's year 2000 services, wherein it remediates customers' software to be ready for the millennium date change, has been a dwindling part of its revenue. Analysts have estimated that Keane's year 2000 services peaked as a percentage of total revenue in the third quarter. Application outsourcing involves services to enhance customers' applications such as correcting errors in the software code or adding new functionality. Keane started reporting information on its year 2000 services backlog a year ago, co-President Keane said. The executive said the erroneous application backlog figure doesn't change "how we perceive the health of our business or our ability to achieve the consensus earnings and revenue projections for 1999." Analysts estimate that Keane will earn $1.86 a share in 1999. The company is estimated to earn $1.42 a share in 1998. Keane is slated to report its earnings Thursday before the open. Co-President Keane said he spotted a calculation error in the application outsourcing backlog figure Tuesday, as he was reviewing the figure in response to an investor's query. "I think it was an honest mistake," said Adams Harkness & Hill analyst Kevin Yen. What is more important, Yen said, is the size of Keane's backlog at the end of the fourth quarter. Yen said the company has told him it has been signing a lot of contracts into its outsourcing backlog.