Letter to Shareholders
TO OUR SHAREHOLDERS:
Keane Associates continued to make solid progress in 1973, with both revenues and in- come reaching record levels For the year ended December 31, 1973, revenues from continuing operations increased 32 per cent to $3.735,962 from 1972's previous Demand for Keane's services-in the role of ad record of $2.835,149 Income from continuing visor and problem-solver-increased substantially, operations rose 61 per cent in 1973 to $350.586, a trend we expect to continue in the or 42 cents per share from $218,108 or 26 cents future per share in the preceding year
In October, 1973, the Company sold to the Singer Company the marketing rights and in- stalled product base of the System/4 desk-top computer, proceeds from which resulted in a net gain of $192.041 or 23 cents per share. Total net income for the year amounted to $544,375 or 65 cents per share as compared to $186,232 or 22 cents per share in 1972
In view of the successful year just completed, the Board of Directors voted to declare a special dividend of 10 cents per share payable on April 19. 1974, to stockholders of record as of April 5, 1974. To the best of the company's knowledge. this is the largest per share dividend declared by a computer service company and the first since 1968. We will continue to finance expansion out of internally generated funds.
The trends in information systems which we anticipated in 1972 were confirmed in 1973. These trends include growing sophistication in the use of computers, advanced methods of entering and transmitting data, and more com plex planning and decision processes. In this demanding market Keane's "shirtsleeve con sulting" style has given the company a unique posture. Our ability to define, implement and control projects of enormous scope within fixed cost and time constraints has earned us a reputation for doing what we say we will do This reputation is the foundation of our expanding role as advisors to companies planning and implementing advanced information systems.
The increased complexity and cost of such systems require management and planning expertise that few computer users possess.
In 1973 an increasing portion of the company's revenues came from long-term contracts involving the implementation of large computer-based systems that used advanced technologies, such as data base management, tele-processing and virtual storage Some of the more significant of them are described in this report.
Our growing involvement in teleprocessing and data base systems resulted in expanded geographical market coverage during the year. Keane analysts were asked to perform consult ing and implementation assignments in many areas outside of those normally covered by our existing branch offices. Thus, for the first time, more than half the company's revenues were derived from operations outside Massachusetts Philadelphia and Detroit, our most distant branches, exceeded both revenue and profit goals Plans are now being completed for open ing additional offices this year.
Over 75 per cent of annual revenue typically comes from clients for whom Keane has worked in the past. While this pattern was repeated in 1973, the year was also very successful in terms of the number of new clients served More than 45 companies used Keane services for the first time.
In 1973, two groups, each headed by a key vice president, were established to direct our energies into new business areas which will complement our increasing share of existing service markets. The first group, assigned the function of corporate development, is actively seeking out and evaluating possible acquisitions in areas related to our traditional business. The second group is assigned the responsibility of developing new venture activities within Keane
We are optimistic about business prospects for the coming year. This optimism must be tempered, however, by the realities of short ages, inflation and recessionary fears that affect all business Given a reasonably healthy economy, 1974 will be another excellent year for Keane Associates.
John F. Keane
President
March 15, 1974
Annual Report
Key Information
Keane Associates Inc, is traded Over the Counter on the NASDAQ under the symbol KEAN
Notes