The year 1986 was one of the more challenging in the Company's twenty-one year history. Revenues were $40,396,000 as compared to $39,701,000 in 1985. Net income was $283, 000, or 21¢* per share, versus $766,000, or 55¢* per share a year ago. During the year, Keane's professional services business remained strong and increased earnings. Company profits were adversely affected by a drop in earnings resulting from Keane's hospital and manufacturing software products business units. I believe these difficulties are now behind us. We made some hard decisions and "fine tuned" Keane's business in order to be stronger, more competitive, and more responsive to client needs.
Keane's Information Services Division, which continues to aggressively market professional services to Fortune 1000 companies, reported strong growth in revenues and contribution during 1986. In accordance with the Company's long-range strategic plan to increase
SERVICES
The Information Services Division achieved a 25% growth in revenues and more than doubled profitability. The division streamlined its operations and adjusted to meet present market conditions through more efficient employment of staff, more aggressive marketing, and reducing overhead expenses. In June of 1986, Keane acquired Reden Consultants, an 80 person professional services company with offices in Chicago and Minneapolis. This significantly in-creased the company's market share and profitability in the Midwest. The division plans to vigorously pursue further acquisitions as a cost-effective means of increasing market power and entering new, targeted geographic areas.
PRODUCTS
In response to changing market conditions within the healthcare industry, KeaMed acted quickly to lower costs, increase efficiencies and refocus efforts. Throughout the year, the KeaMed/Wang Business Unit remained strong and profitable. However, the Company streamlined its IBM related business by merging the IBM System/36 and System/38 groups. In addition, it adjusted its marketing efforts to address the short and intermediate term needs of hospitals. This has resulted in nine hospital sales during the later part of 1986, in-cluding a significant new refer-ence site in Houston, Texas. >We believe KeaMed's hospital expertise and on-going strategic alliances with both IBM and Wang will provide the division with a significant competitive advantage in the years ahead.
Annual Report